I was recently studying the various Kinder Morgan energy companies as potential investments, and I got sidetracked into studying the life of Richard Kinder himself. He’s a pretty interesting dude—he was supposed to take over at Enron in 1996, but he got jilted by Kenneth Lay and went and started his own energy firm with Bill Morgan instead. The energy assets that Richard Kinder used to build his empire came out of Enron itself—when the Enron Board decided to get out of the old pipeline business and focus instead on the trading of energy assets, they sold $40 million worth of pipeline assets to Richard Kinder. He was able to use these assets to build a billion-dollar empire, as Kinder now owns more than $7 billion worth of KMI and owns token positions in the other publicly traded members of the Kinder Morgan family.
But what caught my attention is … Read the rest of this article!
Since I began writing finance articles in 2011, a few opinions of mine have received outsized criticism. Anything relating to gold or tobacco, and anything relating to BP’s merits as an investment after the oil spill.
My view was, and remains, that BP stock has been disproportionately lambasted as a long-term investment after the oil spill due to its dividend cut, high litigation costs, and stagnant stock price over what was an oil spill that occurred over a decade ago.
Amidst BP’s criticism is the fact that it is an enormous company that sells $304 billion worth of energy-related products per year. It is massive. It earns annual profits equal to half the market capitalization of Hershey each year. Thinking about that–if all Hershey stock were available for sale at the current price every day for the next two years, BP would be able to purchase the company outright with … Read the rest of this article!