At Extreme Investor Network, we are dedicated to providing unique and valuable information to help you make informed investment decisions. Today, we are diving into the insights of legendary investor Bill Gross, known as the “Bond King,” and his current investment strategy.
Instead of sticking to the traditional bond market, Bill Gross has found a new favorite investment – oil and gas pipelines. In a recent interview with Barron’s, Gross shared his enthusiasm for these publicly-traded master limited partnerships, citing strong returns with added tax advantages.
Gross highlighted the appeal of pipelines due to their bond-like yield attributes and the liquidity offered by the stock market. These investments also come with tax benefits and limited risk, making them an attractive option for investors looking for stable returns.
While Gross has traditionally been known for his conservative investments in companies like Microsoft and IBM, he has taken a new interest in oil and gas pipelines. He pointed out that these partnerships offer tax-deferred yields of 8% to 9% and have seen significant price appreciation in the last year and a half.
Gross’s shift towards MLPs reflects his skepticism about the future returns of US Treasurys, as he believes yields are unlikely to exceed 5% in the future. Instead, he sees MLPs as a more reliable option for steady returns with low risk and high tax benefits.
In terms of other market trends, Gross remains cautious about diving into artificial intelligence investments. While he holds positions in Microsoft and IBM, he has steered clear of volatile stocks like Nvidia. He also expressed interest in the utilities sector, noting that AI developments are likely to drive increased energy demand.
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