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Subject:  Re: Link to SA article on MLPs Date:  6/3/2015  2:55 PM
Author:  factoids Number:  78437 of 86824

Martin asked "What are the top three MLPs to buy today?"

In most sectors, that is a good question. For MLPs, it is a terrible question. It is terrible because the questions is highly context sensitive. (It is like asking what are the best 2 REITs when the one providing the answer has already expressed the idea that one needs exposure to Apartments, Malls, Office, Storage and Health Care sub-sectors if one is creating a long term portfolio.)

Let's say you don't have any MLPs currently - and you do not want to mess with the hassle of K-1s or worry about potential UBTIs in IRAs. Such investors should buy KMI and WMB. I also own PAGP and TRGP - and those two fit as being c-corps. ENLC and WGP are also good options.

Average MLP investing has not recently (or since 2010) beaten the market. On the other hand, high CAGR MLP investing beats both the AMZ and the S&P 500. Some high CAGR projections will not materialize. You need to be diversified in your high CAGR investments. Three is not enough to have that diversity. You can use the spreadsheet found in my article to find the high CAGR options.

If you already own MLPs and do not own EPD - you are procrastinating on investing in something that will make your portfolio safer.

If you need yield at a reasonable growth rate - ETP is very attractive. BPL also qualifies as being growth at a reasonable yield.

Those are the top four context sensitive responses that come to mind - but I am sure that there are many, many others.
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