Wednesday, February 24, 2016

LQ (11.30X20K) and KMI (17.60X20K) and 1M liquid asset

Decided to take the scary ride and follow Buffet's lead.

The story of KMI, major oil pipeline (I believe our backdoor neighbor is the funder), earning money not by oil price but by how much oil is pump via it pipelines.  The oil price now is low, around $30, but the volume of oil needed is increasing, especially now American is buying more big trucks.  There is no reason for KMI to be beaten down.  The fair price should be around $35, I plan to sell it by July at about $30, $12x20k will give me $240K. That will be nice!

The story of LQ, a Texas based hotel change, was similar to KMI, beaten down because it is in Texas.  It was recommended by an investment manager in NPR Nightly Business Review, it make sense to me (the NPR show often predicted wrong!).  I have been watching it around $10, bought it at $11.30, expect to sell when it is flattened or by the end of the year, for $20, that will get me $180K

the ERUS is not doing well, I got it around $13 now is $11, hi, Putin, work on being a good neighbor!
Plan is to sell around $18, will get $150k, but unlikely now.

The goal this year is to increase the liquid asset to $1M, then I can keep it in the account do wild projects with the earning.  We shall see. $700 + $240 + $180 + $150 = $127.


After working for public university for almost 20 years, I am lucky enough to have a pension to rely on.  I will get about $40k/year starting 2018, enough to live frugally, which I have been doing as a chosen lifestyle.  I believe with $40K pension, $60K from my real estates, $40K from vacation rental, it should be enough. Especially the benefit include health insurance for kids till they are 26.

 


Wednesday, February 17, 2016

NASDAQ:INVT and NASDAQ:LMFA from a broker long time ago

While I was a grad student and only has 20k to invest, SM called and tried to sell me some small IPO. Some took off and more bombed.  Early Feb 2016 he recommended INVT and LMFA, two very small company with unique business. Not sure I will take the risks into industries that I am not familiar with.

Will keep watch these.

Tuesday, February 16, 2016

KMI vs ERUS Buffet vs Tao

Buffet and I both see great opportunity in oil lately. I bought Russian ETF, he bought the oil refinery KMI Feb 16th. 

I predict both of us will earn at least 30% by the end of 2016. We shall see who is ahead.