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EnvestorFirst (< 20)

Energy Transfer Partners: Buffett Worthy



August 10, 2011 – Comments (5) | RELATED TICKERS: ETP

Finding a stock worthy of a big wig like Warren Buffett can be diamond in the rough. Energy Transfer Partners has great potential for a number of reasons. According to Ilan Moscovitz, explains why ETP would be appealing to Buffett, and why it may be on his stock picks. 


 "1. Earnings power

Buffett is famous for betting on a sure thing. For that reason, he likes to see companies with demonstrated earnings stability.

2. Return on equity and debt
Return on equity is a great metric for measuring both management’s effectiveness and the strength of a company’s competitive advantage or disadvantage — a classic Buffett consideration. When considering return on equity, it’s important to make sure a company doesn’t have an enormous debt burden, because that will skew your calculations and make the company look much more efficient than it actually is."


Find the additional reasons here:


5 Comments – Post Your Own

#1) On August 10, 2011 at 12:13 PM, mm5525 (< 20) wrote:

Take a look at EPD, MMP, PAA, OKS, CHKM, HEP, and EPB, too. All of them are solid.

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#2) On August 10, 2011 at 3:40 PM, EnvestorFirst (< 20) wrote:

Will do!

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#3) On August 11, 2011 at 9:26 AM, mm5525 (< 20) wrote:

The MLPs were up gigantically since Helicopter Ben spoke on Tuesday. In the hunt for yield, the MLPs are a really solid choice IMO, especially with basically no international exposure. In PAA's instance, some of their earnings come from Canada. No Eurozone bank worries with these.

Of all I mentioned above (I own all I mentioned), my view is EPD, MMP, & PAA are the best. They are also the biggest and most established, along with OKS, which recently had a 2-for-1 split. CHKM is a newly minted MLP whose GP is CHK. In the early years of a new MLP, the distributions often are increased rapidly in an effort to attract new investors for their growth prospects.  

KMP is a very popular one, but I do not own it. Same with  EEP.

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#4) On August 11, 2011 at 11:30 AM, EnvestorFirst (< 20) wrote:

Just read an article about EEP, looks like that have pretty decent yeilds.

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#5) On August 12, 2011 at 6:57 AM, mm5525 (< 20) wrote:

In my view, the best time to buy the MLPs is after a secondary offering is announced. In PAA's case, they announced yesterday a new round of shares (called "units") priced at $61.10. PAA will trade much lower today than yesterday, and you could easily get it well below the $61.10 offer between now and August 17. The secondary offerings is not something to be alarmed about. This is part of the MLP model. Since 90% of earnings have to be paid out to unitholders, most slowly but surely issue more units/shares for funding operations/expansion. Take some short-term pain for some long-term gain. There's a major pipeline shortage in North America. PAA is as solid as they come, just look at their earnings report recently announced.

More about the PAA secondary... article one is the announcement, article two is the pricing information.

Fool on!

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