Sweet

O/G industry will remain low multiples because it’s seen as dying industry. Doesn’t matter if that’s not true, it’s just what the most people think and price reflects that. It won’t have FANG multiples. Predicting oil prices is difficult and it can swing a lot on no or little news. I think higher for longer is the mantra for now and it will anchor around $100 with dips below and potentially large spikes higher at certain times. I don’t see any sustained period of low oil prices like we had from 2014 anytime soon. People think the oil era will end with extremely low oil prices. I have the opposite view now, if everyone thinks the oil era is over, why invest to bring more oil to the market?

If in ten years crypto has disrupted payments systems I’d be very surprised. I’m in Spek’s camp, I just don’t see how it is a better all round package than the current system. For all the trying to create crypto based currencies none have widespread adoption. Many crypto currencies are either get rich Ponzi schemes, outright scams, or in the case of Bitcoin a store of value (for some people).

$201,379,000 Total Holdings $AAPL(PUT) 18% $35M $BMY 11% $22M $BKNG 9% $19M $DISCK 9% $19M $GOOGL 8% $18M $CI 8% 18M $META 8% 18M $OVV 8% 18M $NXST 7% 14M $STLA 5% 10M $GPN 4% 9M $SPWH 1% 2M All are long positions except Apple. Source: https://mobile.twitter.com/burrytracker/status/1539644495779618816

I can see that happening on the Amazon website, but not for purchases from other sites, or in person.

It can’t be impossible to replicate if Visa/Mastercard/American Express have done it. If it requires deep pockets to mimic both Google and Apple have it. The problems as I see it are penetration, both user and merchant adoption. Getting people to use phones as payment is one penetration issue and I’m certain that trend will continue. The other, as someone mentioned above, is getting merchants to accept the new way of paying. I’ve not heard of anyone saying that either Visa and Mastercard are done, so when you say ‘everyone thought they were toast’ it’s a reality I don’t recognise. In fact, if there is a consensus I’d say it’s that they cannot be displaced easily.

Remember the thread isn’t about blockchain. The original question is why can’t the likes of Apple mimic the Visa and Mastercard architecture and collect the fee themselves. Apple has deep pockets and could offer better rewards that either Visa and Mastercard if they were serious about entering the business.

@longlake95yes I mean swapping out Visa and Mastercard entirely. Apple could easily gobble up the fees for themselves. They have to capital to mimic. @Parsadi hadn’t even thought of blockchain. For Apple would it be easier to use the blockchain architecture, if not now then in the future, than the V / MA type architecture? I don’t know much about the nuts and bolts of how these transactions are ferried around the world.

Visa and Mastercard are the dominant players in the credit card space and have grown revenue and cashflow steadily for years. Recently I’ve been thinking that the hitherto impenetrable moats of V and MA are vulnerable. Five years ago I used the plastic credit card all the time, but now I almost exclusively use Apple Pay, it’s just easier. These days I go to shops and young people generally use their phones to pay whereas the older generation still use the plastic card. I estimate that the use of plastic credit cards is still the dominant means of paying but in 10 years time I think the trend will have shifted and Apple and Android pay will have greater share of payment method. IF Apple and Android can get individuals to think of their phone as a payment device, and went aggressively after market share by offering great rewards on their own credit cards, could the Visa and Mastercards moat be bridged? I think yes.

Spek, the UK is banning ice engines by 2030. Hybrids will be given a stay of execution for a bit longer. Diesel and petrol only though is gone.

IMO oil price at 120 was too high for the world economy. It’s good that it has softened a bit. Energy equities moved too far and too fast, they have had a huge spike up in less than a month. Historically we are in a price range that have had a lot of willing buyers and sellers. I think the spike higher over the last month indicates the direction of travel, it’s just going to take time.

Forward looking to 2023 supply and demand balances. https://www.bloomberg.com/opinion/articles/2022-06-13/the-oil-price-shock-will-reverberate-into-next-year

Worrying trend, not only for demographics, but in terms of being able to have a conservation with people around facts. Factually there is no basis for this gender nonsense. An ideology riddled with contradictions and refuted by basic observable biology.

The birth rates in the West are about 1.5 - 1.6. The rest of the world is following. If this results into a declining population, which is already the case in some developed countries, it could become a major secular headwind. Is it a predicator of future economic performance? Should investors consider it?

Regarding the price anchoring Greg and Spek were talking about. This something I struggle with. An approach I have been thinking about taking is to open a very small position in the shares I want (and I mean very small) and see how I feel after a few months. The initial emotional hurdle of an opening a position is the hardest part of building a position for me. I always find it easier to buy more after I own the company and feel comfortable. This is an emotional hack I intend for employ going forward.

The government of the United Kingdom looks set on going down the route of ‘small modular nuclear reactors’. Rolls Royce is in this space and believes these SMRs are cost efficient and scalable to meet net zero requirements of the future. https://www.rolls-royce.com/innovation/small-modular-reactors.aspx#/

https://www.stockideashq.com/ Sent to me by a friend. Appears to be free, I've seen income statements going back to 1991. I, nor anyone I know, has any affiliation with the website or benefits in any way from it. Edit - to note, the mobile version didn't really work for me. Desktop works fine.

There was no support for O&G when it was getting hammered and companies were going bankrupt. The same people who are calling for a windfall tax and claiming price gouging were just last year saying we don’t need any more oil and gas investments. Infuriating.

US administration is looking at a windfall tax on US oil companies. https://www.reuters.com/article/us-usa-energy-tax/white-house-weighing-oil-profits-tax-to-fund-consumer-rebate-official-says-idUSKBN2NJ1IO I think getting that through the House and Senate would be tough. Can it be done via executive order?

I find Josh quite irritating on Twitter, but he comes across well in the video. I’d be hesitant to predict oil prices, but for energy investors, a large spike higher would be destructive to demand, and be bad for equities.

I’d imagine they have little to no pricing power. I need convenience or cheap when I get a cab, takes me from A to B, not looking an experience and not wanting to pay a premium. It’s a low margin business that needs scale. It has brand recognition and ‘Uber’ has almost become synonymous with taxis ordered from your phone. Is that enough of a moat? Probably. Whilst it has characteristics that are FANNG like, I’m not convinced it’s many bagger like AMZN, GOOG etc, maybe just a multi-bagger. Price is important, and right now I wouldn’t feel compelled enough to buy.

Agree with Uber, it’s surprising in some ways that company hasn’t taken off like the other momo stocks. Need to see some evidence they can make money, also need to stop diluting shareholders.

@SharperDingaanthanks

@SharperDingaaninteresting rules of thumb. Think many of the O&G investors on Twitter forget the cyclic nature of the industry. In your opinion, what cycle are we in? Feels like late 2nd or 3rd doubling, but I’ve noticed that booms and bust tends to last about 7 years. From 2014 we had 7 down. Possibly in 2nd year of boom but given short nature of shale. I can see that cycles could be either shorter because of Shale’s responsiveness, or longer because Shale’s responsive keeps investment suppressed for longer.

@SharperDingaanin your opinion, where are we in the cycle. Are you taking profits off the table now, if not when is a good time to start?

I don’t think it requires any insight to China or their plans. Simply that showing weakness invites aggression. Whether the US would defend Taiwan or not is besides the point - it was the right thing to regardless.