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Re: 5 year chart SPY - MMP kills SPY for 10yrI'm not saying that MMP is not still a great long term investment. I sold it because of my perceived opportunity cost of being overweight in MLPs and energy in general One usually gets overweight in a position or sector because of research, conviction, and a ton of biases. I have done just that with MLPs and energy in general There are multiple risks in being overweight one sector. To me the biggest two are: -opportunity cost if the sector is out of favor (as MLPs have been for about five years) -unanticipated changes (change in tax laws favoring MLP structure) MMP is a great business that has provided wonderful historic returns. I am just as convinced of that today, one day after selling it, as I was when I started buying it in 2015. I made the decision to lighten up on MLPs and the only tax neutral way to do it was to sell MMP. My two remaining MLPs are EPD and ET and they are my two largest equity holdings by far. I still have about 14% of my net worth in MLPs and am not willing to go higher for the reasons cited above |
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Msg # | Subject | Author | Recs | Date Posted |
104182 | Re: 5 year chart SPY - MMP kills SPY for 10yr | jazbrokr | 4 | 6/19/2019 3:42:53 PM |