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Energy Transfer Partners, L.P. Message Board

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  • capt317 capt317 Aug 7, 2006 6:18 AM Flag

    Stat Update for 8-05

    I am new to this investment.Can someone explain"5yr threshold"?

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    • Re to:capt
      "Can someone explain"5yr threshold"?"

      That seems like a good historic period for an old, capital preservation, old coot like me, looking for winners. Priciple is, winners keep winning, losers keep losing.

      Take EEP for 5 years. Unit price up 6.0%, distribution up 5.7% over the period. Take infaltion at 15% for the period and you would have lost about 9% in capital, and 9% loss in payout value.

      Take MMP for 5 years. Unit price up 131%, distirbutions 127% for the 5 years. Take away inflation and you would still be up over double in both capital and payout. Take the last payout and you would be getting 16.5% yield based on your buy.

      The logical person would rather own MMP than EEP. The emotional person? Well, not me.

      Anyway, one might wonder how much time is required to seperate the great MLP from the so so MLP. I decided I need 6 MLP's to have diversity. I own KMP, PAA, ETP, EPD, APL, MMP. They have the best 5 year growth records in pipelines. On average they have had total return of 33% per year for 5 years, 18% in the last 7 months.

      Others looking for winners, (growth) might use a shorter time period. Some might want to go for high yield without concern for growth. (you might have another EEP)

      Just some ideas based on history.

      -chart-

      ps, Did anyone notice the unit price follows the growth of distributions? Hummm, constant yield.

 
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