Many of the great investors advise that the key to success when it comes to investing is to stay in your area of competence or invest in what you know. In the volatile resource sector, a man who has true experience is none other than Matt Badiali. He obtained a master’s in science in Geology at Florida Atlantic University and spent many years with boots on the ground examining mines and oil wells from companies all over the world. While attending the University of North Carolina in 2004 for his Ph.D., he became interested in the world of finance. His newsletter Real Wealth Strategist has helped average investors make great rates of return.
Matt Badiali has recently been endorsing Master Limited Partnerships as ideal investments. These investments were given the name “Freedom Checks” to make them sound extremely sensational and that these were a hot new investment that investors should not pass up. The truth is that MLP’s have been around since 1981 and Matt Badiali’s background has enabled him to understand these investments and how to profit from them. Many MLP’s are related to the oil and gas production, storage or processing. And ninety percent of the revenue from these companies must come from these operations.
Many websites have claimed that Matt Badiali was endorsing a scam. It seemed impossible that companies would distribute such vast sums to its shareholders. They had no understanding of how MLP’s worked. These companies are not required to pay income taxes, which is why they are able to pay higher distributions to their shareholders. MLP’s trade just like individual stocks. An investor with a modest starting sum can purchase shares through their brokerage and some MLP companies trade for under ten dollars a share. Although Matt Badiali did make MLP’s seem too good to be true, these are legitimate investments that even sophisticated investors have little understanding of.