Energy Sector

[Spekulatius]

It’s cyclical,  always has been.

[UK]

6 hours ago, Sweet said:

Lol, always the way.

 

Glad I got out of this POS sector two years ago.  It would take a covid like crash to make me touch it again.  Look at Oxy, even Buffett can’t get this space right.

 

Not only are you looking at the long-term secular decline in oil use but many companies are not run in the interest of the shareholders.

 

And the oil investors are addicted to gloom and doom and wishing for world war three or some shit to pump oil up so they can make bank.  Or they blame politicians for keeping oil low - no shit they want low oil price.

 

It’s a wild sector.  One I do not miss.  But dam I made a lot of money in it.

 

 

I never made any big money from oil, but you buy these companies during extreme distress or panic, when they are visibly dirty cheap and sell when things normalise. Buying them fairly valued and rationalising your way out of this seems just does not work. Maybe finding some real small gems should work also despite of the cycle...

[Sweet]

4 hours ago, UK said:

 

I never made any big money from oil, but you buy these companies during extreme distress or panic, when they are visibly dirty cheap and sell when things normalise. Buying them fairly valued and rationalising your way out of this seems just does not work. Maybe finding some real small gems should work also despite of the cycle...

 

Yes it’s cyclic but finding the bottom in these cycles can take years too.  Hoping for breakouts to new highs for many of these companies is a big mistake.  There was some dangerous talk in this thread an about 2 years ago that this was a slam dunk from here - it seemed obvious to me the easy money had been made.  You can buy good companies for sure, but there are many more which are terrible and are ran in the interest of the board or founders.  The sector is something you rent but never own in my opinion - not anymore at least.  Exxon Mobil would have been a great hold decades ago, think there are so many better options now.