I was neither buying MTGE nor QRE so how can you know whether what I did was correct since you have no knowledge of my portfolio performance over the period. My portfolio income continues to increase and compound (putting me in the 'rich' category, were the income not mostly offset my depletion and depreciation offsets). So I'm doing fine, thank you very much.
This is why:
You said this,
"Earlier in the year when I suggested QRE had a lot of promise"
And it went down 3.23% on a total return basis even after 4 dividends were paid....right?
So, keep up the good work.
Jack bought MTGE when he left LINE.....no one said that you did but maybe you should pay closer attention to what Jack does since you look like you could use some of his help.
This was most of my post:
"This is what you posted:
"Earlier in the year when I suggested QRE had a lot of promise, I got nothing but sneers from the know-it-all trio of Jack's groupies who love nothing better than contradicting.
Now I suppose they will love it since it turns out Mike Linn left LINE to go to QRE."
Now lets see some of the facts.
If you had actually followed jack and did what he did....from last december until now and had SOLD your MLPs and BOUGHT MTGE then you would have a gain of 52.02% using the buyupside div reinvestment backtest calculator.
If you did what you had suggested and it was from last December and bought QRE then you would be DOWN even with four dividends....so your loss would be 3.23%......your return would be -3.23 %
AND, Jacks would be a gain of 52.02%.....so,
HOW is anything about what you posted correct?
Did not look at what Jack actually did when he left LINE, or just too embarrased to mention that QRE is actually down 3.23% even after 4 dividends paid,...or, maybe you do not even know how much QRE is down on a total return basis....and still just making up things?
If I had "sold my MLPs and bought MTGE" I would be liable for hundreds of thousands dollars in deferred tax on previous distributions. Talk about dumb ideas. That would mean that my funds available for reinvestment would be hundreds of thousands of dollars less, meaning that my portfolio income would either drop significantly or I would have to reach for much higher yield to achieve the same level of portfolio income. I guess you are still puzzled by the whole MLP tax deferral thing.
As you know I have about 80 long positions in MLP, trusts and the like, in addition to about 50 short put positions (rolled forward each quarter for additional income). All of which combined brings me in $250k mostly tax deferred income per year. So I hardly care whether one of those positions is shooting up the charts over a 6 month period. The important point is that my portfolio income continues to increase every year and QRE is contributing its small share with its 10% yield. My yield on cost for QRE is close to 15% and it increased its distribution by 18% over the last year, by far the most of any E&P MLP and beating the vast majority of all MLPs in distribution growth over the last year.