Should You Buy Kinder Morgan Stock Now?

The fall in the price of Kinder Morgan’s stock has caught my attention. The former MLP, which has delivered returns of near 20% annually since CEO and Chairman Richard D. Kinder purchased hard assets from Enron two decades, has seen its share price come under stress. The reasons for the decline have been fundamental, psychological, and political.

The general trend from $44 per share towards $29 per share has been due to legitimate concerns about the business.

First, the bad news:


It is true that Kinder Morgan has seen 12% declines in revenues in the past year, as the price of transporting oil, chemicals, and other commodities has come down a bit alongside the decline in the prices of commodities themselves (because oil that makes sense to ship at $70 per barrel doesn’t make sense to ship at $50 per barrel.)

Kinder Morgan does not pass Benjamin Graham’s balance … Read the rest of this article!

Save Growth Stock Investing For Recessions

Alphabet stock, the artist formerly known as Google, shot up $50 per share to close above the $700 mark to imply a market capitalization of $450 billion. The reason for apparent investor jubilation is that Alphabet reported 13% growth in revenue over the past twelve months when it disclosed quarterly earnings on October 22nd. That growth is very impressive for a company of Alphabet’s size–it generated revenues of $66 billion last year, and this year’s figure should be in the $74-$77 billion range.

The current profits of $15.8 billion are way, way ahead of the $1.51 billion that Alphabet reported in profits ten years ago. It deserves credit for being the most dominant tech company during this time alongside Apple. It’s hard to create a moat in the online world where the barriers of factories and physical real estate are not present, but Alphabet has succeeded in doing so.

But … Read the rest of this article!