Author Topic: Oil  (Read 2317 times)

mrpercentage

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Oil
« on: December 04, 2015, 05:46:05 PM »
Jimbo just went on air and said he can no longer recommend big oil for long term investing due to a bunch of green articles he is reading. WTF?!

He can't be serious. Does he not know how every non-metro area of the entire United States operates? West coast can not dream of not having a car (unless they UBER one of course). I just picked up a lady at the grocery store. I carried her bags to her door and she gave me a four star review. (don't ever do that unless you are a total jerk face-- uber won't let people continue to drive with averages below 4.5 for an extended period).

use2betrix

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Re: Oil
« Reply #1 on: December 04, 2015, 07:30:28 PM »
While Green is certainly the way of the future it has a LONG way to go. Most of the big oil companies stock has dropped a ton with oil prices the last year. Shell, BP, Conoco. Phillips 66 is holding strong still I believe.

I actually just dumped a few grand into some oil company stocks last week. Big name companies, because I feel very positive they'll bounce back, at least somewhat. To be honest, right now I almost feel better investing in someone like Shell or BP than my VTSAX. The oil companies are 50% of what they were, while VTSAX has been skyrocketing until this year.

Of course 90% of my excess money will still be dumped into VTSAX because I believe in the long term math, but I am toying around with dumping a decent chunk more into oil.

I also work in the oil field for one of the major companies, so I can vouche for the industry from my beliefs.

I'm glad you started this because I've really been wanting to discuss it. I'm really fighting the urge to dump another bigger chunk into oil.

ScarElbow

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Re: Oil
« Reply #2 on: December 04, 2015, 08:33:30 PM »
I got some of my money in XCO. Stock looks disgusting and makes you sick to your stomach. But I believe over the long term, especially in a cyclical industry like oil, this is gonna be a home run.

Meanwhile I can sell LEAPS put option on it.

mrpercentage

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Re: Oil
« Reply #3 on: December 04, 2015, 08:36:54 PM »
I think the energy field is so vast that there is room for alternatives without hurting future returns in oil. I agree in your assessment. Everyone knows the oil sector is a meteor crater right now. Most agree it will be bad for a while. However, if you have faith that an industry will pull through, isn't that precisely the time to start investing big. Who knows where the bottom is? But dollar cost averaging into these companies seem wise to me.

Seppia

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Re: Oil
« Reply #4 on: December 05, 2015, 06:39:36 AM »
I happily put some more money in Royal Dutch yesterday.
Big oil isn't disappearing, and with all the rest of the market being sky high I feel extremely comfortable being overweight on energy.
One could also buy VGENX, also around record lows

furrychickens

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Re: Oil
« Reply #5 on: December 05, 2015, 08:47:07 AM »
With share prices so low, the dividend yield on many of the majors would compound your money very quickly.

Oil has always been volatile but the CAGR of many of these firms is outstanding over time, with average being 11-13% assuming dividends were reinvested.

Joshua Kennon had a good piece about the oil majors a while back.

use2betrix

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Re: Oil
« Reply #6 on: December 05, 2015, 03:09:36 PM »
I happily put some more money in Royal Dutch yesterday.
Big oil isn't disappearing, and with all the rest of the market being sky high I feel extremely comfortable being overweight on energy.
One could also buy VGENX, also around record lows

Hey thanks for the great suggestion! Did a little digging and also tossed some $$ into VGENX as well.

Seppia

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Re: Oil
« Reply #7 on: December 05, 2015, 03:22:05 PM »
You're welcome :)