Why I Bought Cedar Fair LP (NYSE: FUN) I acquired my Cedar Fair units in 2002 but it wasn't the first time that I had owned a piece of the quality amusement park operator. Back when I was the founding treasurer of the world's third oldest online investment club -- Genie Online Discoverers -- Cedar Fair was our club's first purchase in 1992. Cedar Fair owns regional amusement parks all over the country. Its two most popular parks are the roller coaster capital of Cedar Point in Sandusky, Ohio, and the year-round Knott's Berry Farm that thrives in Disneyland's shadow. As an amusement park buff I've been to both of those parks at least three times apiece over the years. Other parks in the Cedar Fair family include Valleyfair, Dorney Park, Worlds of Fun, Michigan Adventure and Geauga Lake -- as well as several smaller seasonal water parks. Unlike its regional rival Six Flags (NYSE: PKS) Cedar Fair has been consistently profitable. Yes, even in the rocky sector of fickle teen riding habits the class of the industry can deliver steady results. The company trades as a limited partnership, distributing its profits to investors in the form of hefty quarterly dividend distributions. The company has hiked its payout 13 times over the past 10 years. As a welcome perk to those who own at least 100 units -- and these are units, not shares -- the company mails out generous coupons every April including buy one, get one free park admissions and resort stays. Why I would sell Cedar Fair? I have a higher tolerance for disappointment with Cedar Fair than with most of my other holdings. I guess I've grown used to the annual discounts and the meaty dividend (the units continue to yield better than 5%). However, that doesn't mean that I would be shackled to Cedar Fair forever. In 2004 the company acquired Worlds of Adventure from Six Flags -- and restored it to its original Geauga Lake name. Unlike earlier acquisitions that panned out nicely the park had a horrendous inaugural season under new management. Then again the deal was announced in March, closed in April and the season started in May. I'm willing to give the company another year or two to get it right. If it doesn't, no, it probably won't find me selling. However, it will lead me to question the company's sterling reputation for turning parks around. Now if its flagship park of Cedar Point -- where the company's headquarters are located actually -- were to come under severe operating inefficiencies then I would consider selling because it would signify failure right under management's nose. Bad weather hurting the turnstile clicks? I can live with that. Delayed openings of a new ride? Hey, it happens. But incompetence, unchecked? I doubt it could happen to a classy company like Cedar Fair but I'll be eyeing the exit turnstiles if that ever should come to be. Go Back UNDER

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