WHY I’M BUYING OIL STOCKS

oil well
Maybe it was watching The Big Short where everyone thought a group of canny investors were crazy when they said the housing market (and many of the securities based on mortgages) was going to tank. Maybe it’s my skeptical nature. Maybe it’s Saudi Arabia manipulating the energy market to punish Iran. But, whatever the reason, I went out and bought more oil stocks. Yes, it seems like lunacy. Gas prices are down, oil companies are going out of business. The Energy Sector is depressed. But like the guys in The Big Short who saw the flaws of the banking system, I see a world dependent on oil. When Saudi Arabia stops pumping cheap oil, there will be another Oil Shock similar to the one we had in the 1970s. I bought Marathon Oil (MRO) and Devon (DVN). They are domestic producers so there’s no Middle East exposure. If you’re thinking about what to do with that Tax Refund, maybe a few oil stocks might brighten your future.

15 thoughts on “WHY I’M BUYING OIL STOCKS

  1. Cap'n Bob

    When I’m paying $10/gallon for gas I’ll be warmed by the thought that at least George will be adding another million bucks to his portfolio!

    Reply
  2. Cap'n Bob

    When I’m paying $10/gallon for gas I’ll be warmed by the thought that at least George will be adding another million bucks to his portfolio!

    Capitalist swine!

    Reply
  3. Richard R.

    Good for you. I suppose an alternative would be the Power Grid, as those trying to beat oil use and cost will undoubtedly go that way. Sadly, wind and solar seem to continually have an uphill fight, but the big electric producers are still a viable investment.

    Reply
  4. Jeff Meyerson

    Jackie is violently opposed to this. To each his own. I’m just glad gas prices are down as we’re headed to Florida. I did a calculation of what prices were each year on the trip, from highest to lowest. The lowest years (lowest price we paid) were 2005 ($1.83), 2007 ($1.97) , 2009 ($1.67) and last year ($1.76).

    The highest were 2012 ($3.24), 2013 ($3.14) and 2014 ($3.09).

    Clearly, we will be on the low end this year.

    Reply
    1. Wolf Böhrendt

      Jeff, I remember those high gas prices when we were in the USA the last time in 2011!

      It was a funny story:
      The Alamo guy in Nashville didn’t have a small car for us – I didn’t want to drive a SUV, so in the end he offered us a Prius (10 $ extra per day) but he told us that we’d make good on the gas consumption …

      It was an interesting experience driving that car through the Smokey Mountains and then via Atlanta and Athens along the coast, Charleston, Hilton Head etc down to the Space Center and Orlando and back via Savannah …
      We really enjoyed that trip!

      PS:
      Of course with current gas prices a road trip would be nice – been thinking about doing Texas, but there are little problems right now, maybe next year …

      PS:
      Sometimes people looked at us strangely – we had a new England licence plate, maybe they thought we were some Greens from Ivy League …

      Reply
    1. george Post author

      Maggie, my oil stock strategy is a long-term play. I don’t know when oil prices are going up, but whether it’s next week, next month, or next year I’ll be ready to benefit. And now, you will, too!

      Reply

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