KMP doesn't really have excessive debt levels. Compare KMP's balance sheet to that of EPDs. Similar companies in similar businesses. Because EPD has almost twice the number of shares issued and outstanding they carry less debt on their balance sheet than KMP. If KMP wanted to issue more shares, they could easily do that and reduce their debt levels and debt/equity ratios. I like both companies but they obviously don't share the same view when it comes to generating capital or expansions or acquisitions. While different, good arguments can be made for the balance sheet approach of both companies.
No way, not Kinder. There is too much debt, which now whows under the KMI balance sheet (FASB requires consolidation of the subsidiaries). This is a debt pyramid, which is something Buffet/Munger do not like.
if you have a long term horizon (2-5) years, current prices should be appealing. Any further downtrend should be even better. Due some DD and find out for yourself and if not satisfied, move on.
It's that easy.
"It's hard to imagine Buffet ever having an interest in KMP."
Of couse not.
for 8 years, KMP +323% total return
BRK.A +27% for the 8 years.
And the winner is?
Rest my case.
I report, you decide.
It's hard to imagine Buffet ever having an interest in KMP. KMP's ownership structure is too convoluted and confusing for him and most investors. e.g - KMI owns 15% of the general partner but gets 50% of the distributions but KMR also exists and claims part of the distributions, blah blah blah.
Buffett likes easily understood, transparent businesses. KMP hardly qualifies on those premises.
"What a guy!" "we all know how Warren Buffet"
The Pied Piper
But how about results?
3 years to date:
BRK.A +23% Dow +35% RUT +89%
1 year to date:
BRK.A +6% Dow +12% RUT +31%
YTD (year to date)
BRK.A +0% Dow +7% RUT +14%
As for me, I prefer results.
Like KMP, ETP, EPD, APL, PAA, MMP.
My 6 winners.
And we all know how Warren Buffet always lets folks know what he has in mind before he takes action. He exhibits a really heartwarming altruism so he can buy high for the benefit of sellers. What a guy!
Kilroy--I was thinking the exact same thing, as Warren just loves a sure investment. Investing in the pipelines for energy in the U.S. is about a predictably growing business as one can invest in. His investing in KMI/KMP would not surprise me one bit.