TPL

Investing in the little known security stands a real good chance of making someone in your family very very very rich.  Frankly if someone in your family holds it long enough it is a flat our guarantee someone, maybe you, but someone down the line will be a billionaire or somewhere near that with this one purchase.  If you go out and buy some of these shares may I highly suggest you wrap it up in a Roth IRA so as to secure these multi-millions down the line tax free too. 

Here is the deal.  Symbol TPL, or Texas Pacific Land Trust is a leftover relic from a over 125 plus years ago deal that well went bust. However the leftovers is what makes this opportunity so enticing. See this security was collateral for the long ago bankrupt Texas Pacific Railway.  The land was collateral for the railway that at one time was to pay for building the line. Leftover after the bankruptcy was millions of acres of worthless arid and frankly desert land that no one really wanted. For years it sat there being sold off to some landowners and some out of the way towns, plus some grazing rights for cattlemen to produce enough income to pay the taxes, the cost of maintaining the trust, and if any income was left over to pay out a few bucks at the end of each year.  At one point some oil was taken out of the land and the earnings increased but the oil ran out and the trust went back to earning some meager results and paying that small December dividend.  That would be it except that a something that happened just a few years ago.  

That something is the discovery of hydraulic fracking and since TPL owned lots and lots of land in the Permian Basin where billions of barrels of shale locked oil was beneath the surface BOOM the trust suddenly was stinking rich.  Like Texas Tea rich, like Jed Clampett rich.  Frankly no one knows how rich since no one knows how much oil is down there and how much the land will eventually we worth, but it is a hell of a lot for sure. 

Now here is the deal.  TPL is a self liquidating trust that over time sells off their land and mineral rights and will eventually cease to exist.  The trust pays out a very modest annual dividend and uses the rest of the earnings to pay expenses, taxes, and most importantly to buy back shares.  At some point down the line all but one of the shares will have been bought back and the last standing shareholder will be filthy billionaire rich as the holder of whatever remains of the trust oil, land, and such.  Of course over time as the shares increase in value along with buying back shares people will cash in their gains as well to take money off the table and cash in.  So when the last share will be held, or even the last few thousand shares, will be held is anyone's guess.  But with all that lovely new oil money buying back shares the pace has quickened a good bit. Four years ago you could have bought shares for $30 each that now sell for right at $180 per share.  Yes they are overpriced now according to earnings and other normal measuring sticks, but frankly no one knows how much they are really worth. 

The idea here is buy a share or maybe 100 shares and put them in a Roth IRA and truthfully forget about them.  The more shares you buy the better chance you got to being the last standing shareholder.  Talk about winning the lottery!  The chance of losing value over a extended period of time is absolutely nil.  Think about that you can not LOSE money in this stock if held long enough.  The end game is to have the final shares bought back sooner rather than later so as to cash out sooner.  However this final buyback might happen in your lifetime, your child's lifetime, or who knows several generations hence.  If your family has enough fortitude to hang on someone will be unbelievably rich and if kept in a Roth IRA and passed on down the line tax free billionaire rich. 

Now go out there and make someone in your family filthy rich but I would suggest wrapping this buy in some trust that allows for selling only when it reaches a certain value or is the last one standing.  Wanna think that someone else has not considered that idea too?