Billionaire 'Bond King' Bill Gross explains why oil and gas pipelines are his top investment even as AI fervor swirls
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Bill Gross, the billionaire 'Bond King', has revealed that his top investment right now is in oil and gas pipelines. He believes that these pipelines, which trade as master limited partnerships (MLPs), offer strong returns with additional tax advantages. Gross highlights that MLPs have many of the yield attributes of bonds and are attractive due to limited risk, good tax benefits, and liquidity. He mentions that MLP dividends are deferred until sold, and mutual funds cannot buy partnerships, creating a large base of potential buyers. Gross cites tax-deferred yields of 8% to 9% and mentions that MLPs have climbed as much as 35% in the last 12 to 18 months. He also mentions two MLP companies worth paying attention to: Energy Transfer and Western Pipeline. Gross has been investing in 'conservative' AI names like Microsoft and IBM but has never owned Nvidia. He remains cautious about pushing into artificial intelligence and mentions interest in the utilities sector due to AI developments boosting energy demand.
https://markets.businessinsider.com/news/stocks/bill-gross-investing-strategy-oil-gas-piplines-limited-partnerships-ai-2024-5
Markets Insider /
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2024-05-18 04:11:36
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2024-05-18 04:11:36Event JSON
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"content": "Billionaire 'Bond King' Bill Gross explains why oil and gas pipelines are his top investment even as AI fervor swirls\n==========\n\nBill Gross, the billionaire 'Bond King', has revealed that his top investment right now is in oil and gas pipelines. He believes that these pipelines, which trade as master limited partnerships (MLPs), offer strong returns with additional tax advantages. Gross highlights that MLPs have many of the yield attributes of bonds and are attractive due to limited risk, good tax benefits, and liquidity. He mentions that MLP dividends are deferred until sold, and mutual funds cannot buy partnerships, creating a large base of potential buyers. Gross cites tax-deferred yields of 8% to 9% and mentions that MLPs have climbed as much as 35% in the last 12 to 18 months. He also mentions two MLP companies worth paying attention to: Energy Transfer and Western Pipeline. Gross has been investing in 'conservative' AI names like Microsoft and IBM but has never owned Nvidia. He remains cautious about pushing into artificial intelligence and mentions interest in the utilities sector due to AI developments boosting energy demand.\n\n\n\nhttps://markets.businessinsider.com/news/stocks/bill-gross-investing-strategy-oil-gas-piplines-limited-partnerships-ai-2024-5",
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