Investing in Oil?

[tommyguns2]

As for commodities, I'm personally not big on futures. Some may disagree, but I prefer to use good, solid ETFs for exposure to gold, oil, nat gas, silver, ag, platinum & palladium on occasion, etc. GLD, SLV, OIL, etc.

I avoid those that borrow heavily.

JR, I love your posts. Always informative, and you give good advice. I appreciate your contributions!

 

[JR Ewing]

Thanks. I live and breathe this stuff, and I enjoy helping others a little when I can with such important matters.

 

[Dex]

If you're building a portfolio you add some speculative stocks like STTX is what I'm saying. Don't throw your money at every penny stock you see.

 

[JR Ewing]

Looks like Buffett sold out of Exxon and what little he had left in Conoco sometime during Q4 of '14.

Warren Buffett's Berkshire Hathaway Sells Exxon, Conoco - TheStreet

He'd only been in Exxon since mid to late '13, so he didn't hold that one very long.

I remember seeing him on tv in Oct when the markets got really volatile and sold off hard, and he mentioned that he had just made some buys. I'm guessing that that's when he must have likely unloaded the 2 energy stocks. In the 6 weeks or so we've been in Q1 '15, he may have done other things. We won't know until he has to disclose Q1 holdings in the next couple of months.

Soros added energy to his holdings last quarter.

Soros bet on Devon Energy, Transocean ahead of oil price rise

 

[graniteman]

Looks like Buffett sold out of Exxon and what little he had left in Conoco sometime during Q4 of '14.

Warren Buffett's Berkshire Hathaway Sells Exxon, Conoco - TheStreet

He'd only been in Exxon since mid to late '13, so he didn't hold that one very long.

I remember seeing him on tv in Oct when the markets got really volatile and sold off hard, and he mentioned that he had just made some buys. I'm guessing that that's when he must have likely unloaded the 2 energy stocks. In the 6 weeks or so we've been in Q1 '15, he may have done other things. We won't know until he has to disclose Q1 holdings in the next couple of months.

Soros added energy to his holdings last quarter.

Soros bet on Devon Energy, Transocean ahead of oil price rise

You beat me to it about Buffet dumping Exxon. Buffet has made some pretty big blunders last few years but he's got enough to play.
Transocaen RIG is a great long term investment, they're a $50 easy stock, BP oil spill caused them alot of damage

 

[C T J]

''GREED..is Good''

Come on granite!

For me, it's just a game that I play. I remain fairly neutral and just play what I see.

 

[JR Ewing]

Anybody noticing that the spread between Brent and WTI has gotten very wide recently even as the prices of both overall have stayed relatively low? WTI seems to be lagging.

Leads me to believe there's truth to what more and more legit experts are saying about a good bit of the drop in price being due to recent US overproduction.

Brent WTI Spread (Market Daily, USD)


BTW, if you're reading and posting in this thread, you should also be reading and posting on Admin's investment board.

 

[Dex]

I always forget to go to that board but I need to stop by.

My buddy just grabbed some GDP but I haven't had a chance to look at it yet. I know it was trading in the $30's and is now in the $3's.

I was my feeling that oil would try to stabilize around $50. I feel like we have all the information we need to justifiably take a run at the 30's but it hasn't gone yet.

 

[cownick21]

Top Cheap Stocks to Invest In for 2017
If you’re thinking of investing in tech stocks and want to find the best cheap tech stocks with the greatest potential for big gains, it’s important to see how technology-sector stocks are performing in the grand scheme of things.

 

[Manolo]

You dont buy oil stocks when the price of oil is low pumpkin. The oil companies dont make any money when its low.

 

[tommyguns2]

You dont buy oil stocks when the price of oil is low pumpkin. The oil companies dont make any money when its low.

Actually, you do buy oil stocks when the price of oil is low and you anticipate that demand will increase and cause oil prices to rise in the future. I don't think Warren Buffett made his billions by buying companies when there were at their peak, but rather when they were distressed due to market conditions or other conditions, yet were still structurally sound and good long term values.

Energy should definately be a segment of your total portfolio. Of course you don't put all your eggs in one basket.

Also, I'm not saying that any stock having an extremely low price is a good buy. Some stocks are low because they are managed poorly and not structurally sound. Those are bad buys no matter what the market does.

 

[JR Ewing]

Actually, you do buy oil stocks when the price of oil is low and you anticipate that demand will increase and cause oil prices to rise in the future. I don't think Warren Buffett made his billions by buying companies when there were at their peak, but rather when they were distressed due to market conditions or other conditions, yet were still structurally sound and good long term values.

Energy should definately be a segment of your total portfolio. Of course you don't put all your eggs in one basket.

Also, I'm not saying that any stock having an extremely low price is a good buy. Some stocks are low because they are managed poorly and not structurally sound. Those are bad buys no matter what the market does.

Agreed. Unless you're a very short term / day trader type who is a pure momentum player, it's generally buy low, sell high. I greatly reduced the $ I had in energy in Oct 2014, when oil was very high and was just starting to come down sharply and suddenly. I treaded very lightly for a while in energy, then started to build my energy positions back up in late '15 - early '16... I again took quite a bit of my energy $ off the table in late '16 when they shot up big post-election.

Commodities and investments linked directly to commodities tend to be very volatile, and should be handled more carefully than most other investments IMO... Smaller tech companies and especially small cap biotech companies are also highly volatile - better to buy them cheap, be patient, and sell most or all of a position if / when it eventually shoots up big in a short time period on earnings news, M&A, drug trials, rising commodities prices, or whatever.

WLL was in the upper 30's when this thread started in early 2015 - it's now below $10. I actually bought a fair amount of it throughout much of 2016 as it continued to fall, and was actually able to sell most of it for a bit of a profit several months ago.

As for STTX, it's worthless - which doesn't surprise me.