Monday, August 31, 2015


I recently read about Warren Buffet's Berkshire Hathaway making a big investment in Phillips 66.  Makes a lot of sense to me, since Buffet is known for buying quality stocks at a good price and with the oil market being down for quite some time now, the price is right.  If I had the money I'd have probably done the same and bought shares of Phillips 66.  However, I don't have enough free cash to buy individual shares of Phillips, although 4 of my mutual funds have substantial stakes in the company.  

Instead I've been buying up more shares of ROYT, Pacific Coast Oil Royalty Trust.  Even though the share price has taken a beating, I'm pretty confident they'll eventually snap out of it when oil starts to recover.  When will that be?  I'm not sure exactly, but I'd say a pretty good guess would be after the presidential election in 2016.  Once we have a winner, I think we'll see oil prices start to climb.  Sad thing at the gas pump, but could be a wonderful thing if I'm sitting on a pile of ROYT shares.

Collected 5 dividends for the end of the month of August.  While dividend income for the month was no where near last months' record setting level, it was up 9% when compared to the second month of the second quarter.  So I'm pretty pleased about that.  Got an order in to purchase more shares of AOD and ROYT tomorrow, which should generate around a 10% increase in monthly cash flow from dividends.  I'm pretty excited about that and about the first of the month dividends.  It's always great to collect the 5 end of month dividends, but what's even better is knowing the very next day, I'll collect 4 or 5 more dividends! 

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