Aug. 25 at 4:12 PM
$IEP Just wait 'til the distro goes back to
$1/quarter.
I know, I know "but the dilution! ...."
$IEP is like a MEC. You want to pay me 24+% on my capital for 15 or more years in exchange for my deposit today. OK.
"But wait, what if Carl dies?" Well, Brett's pretty smart, and he's got longer to live than I do. And with stepup basis, he is on track for a lifetime of near tax free crazy income with the current structure.
"But wait, what if Carl takes cash instead of units?' He won't. As long as he has units when he dies, Brett gets stepup basis.
But wait, aren't some of Carl's assets going to charity? Yes.
But what if they cut the distribution? They might. But if they do, the dilution cadence is also cut.
"But wait, what if the unit price goes to
$1? " It might. The distribution is what matters in this model. Do you get more in distributions over the life of the investment than your invested capital, that's what to watch.
