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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (54104)	6/28/2014 8:51:36 PM
From: Elroy	Read Replies (1) \| Respond to of 78594

I don't deal with MLP business that own relatively short lived assets and/or need continued Capex to keep running. This is the reason why I don't deal with transports (relatively short lived assets), Ok, but is there a reason? Of course its preferable to have zero Cap Ex than to have billion $ in Cap Ex, but it's just the nature of some industries that they require lots of capital spending to maintain whatever it is they doing. It can still be highly profitable. refineries (high maintenance Capex, volatile earnings). As I said I don't know much about refineries, but if they do require high maintenance cap ex and have volatile earnings, then I think the valuation would be lower to reflect these factors. I don't mind a bit of volatility in results, I try to spread myself out fairly thin in these MLP investments so that some do quite well and others do poorly with the total being hopefully up. I'm only hoping to get ~8%-10% in distributions per year, so ETE doubling in about two years gave me space for a few blowups and still be able to hit the target.