haha
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Although oil and gas and materials stocks are not yet out of the woods, I noticed something about the way I react during these portfolio stresses.
In particular, I and various other people here own at least some MLPs. I have 3, all pretty large positions that in 2 cases were once larger. One is a rare bird, a timberland MLP. I used to drive by some of their lands, when they were still a C-Corp. I bought it in '08. and it's been off to the races ever since. The other 2 are oil and gas related, and like most oil and gas their stock prices have been clobbered. But a peculiarity about an MLP is that it's payouts are way more than it's taxable income. So basis is adjusted down accordingly. Although brokers adjust basis for ordinary return of capital, I think that most frequently the basis you see on your brokerage website is unadjusted. Every tax season you get a K-1 which will show an adjusted basis which correspond to your tax basis. When I look at these reports, I see that if I sold my units I would have a gain, not a loss. So I should think twice about selling, and also I should not harass myself about poor results, because they are not poor! They are merely good, not spectacular.
I don't benchmark against some index. I informally benchmark against a putatively low risk fixed income alternative, and plan to best it handily without losing money permanently.
If I occasionally take a hit, I try to realize that this is part of reality, but I really don't want any large hits.
Anyway, with MLPs that are ongoing well financed viable businesses, things may seem more difficult than they actually are.
Ha
In particular, I and various other people here own at least some MLPs. I have 3, all pretty large positions that in 2 cases were once larger. One is a rare bird, a timberland MLP. I used to drive by some of their lands, when they were still a C-Corp. I bought it in '08. and it's been off to the races ever since. The other 2 are oil and gas related, and like most oil and gas their stock prices have been clobbered. But a peculiarity about an MLP is that it's payouts are way more than it's taxable income. So basis is adjusted down accordingly. Although brokers adjust basis for ordinary return of capital, I think that most frequently the basis you see on your brokerage website is unadjusted. Every tax season you get a K-1 which will show an adjusted basis which correspond to your tax basis. When I look at these reports, I see that if I sold my units I would have a gain, not a loss. So I should think twice about selling, and also I should not harass myself about poor results, because they are not poor! They are merely good, not spectacular.
I don't benchmark against some index. I informally benchmark against a putatively low risk fixed income alternative, and plan to best it handily without losing money permanently.
If I occasionally take a hit, I try to realize that this is part of reality, but I really don't want any large hits.
Anyway, with MLPs that are ongoing well financed viable businesses, things may seem more difficult than they actually are.
Ha
