Disclaimer: Leif Eriksen owns BBEP in his Covestor Performance with Protection model.
October 1, 2010: It’s official. September 2010 is the best September in the market in 71 years! What has traditionally been a seasonally weak period has defied expectations. Another reason not to pay any attention to the noise the market watchers, prognosticators, and assorted other pundits generate daily. The market doesn’t give two cents what they think. I will continue to ignore them and stay 90% invested.
One of the keys to investment success is an ability to take calculated risks with one eye fixed on the downside. This week’s featured investment exemplifies that approach. BreitBurn Energy Partners, L.P. (BBEP) is a relatively small acquirer and developer of oil and gas properties in the United States. It is structured as a master limited partnership (MLP) which means it pays out all of its income as distributions (similar to dividends but with different tax treatment). BBEP has been one of my more successful investments despite – or maybe because of – a very healthy payout. Despite the healthy advance it is still paying an 8%+ yield, as of October 1, 2010 which should continue to be a cushion on the downside https://finance.yahoo.com/quote/bbep?ltr=1.
