News in the refining world is often dominated by talk of spreads. You've got the Brent-WTI spread and the crack spread. Though many investors think the former is what matters most, it's actually the latter that provides a direct connection to the profitability of any given refiner. Understanding the crack spread is crucial if you are thinking of buying a small master limited partnership refiner like CVR Refining (NYSE: CVRR ) or Northern Tier Energy (NYSE: NTI ) .
In this video, Fool.com contributor Aimee Duffy talks to Tyler Crowe about what crack spreads are, how to calculate them, and how they can indicate a refiner's profitability.
Generate income for the long haul
It's no secret that investors tend to be impatient with the market, but the best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.