Back to the past
You may also recall reading a newsletter with information on who the world’s largest oil companies were (refer to “Invest News” August 2005) and how they spend their money diversifying into other industries. The “common sense” belief that higher oil prices would make oil companies go broke, may be commonly held … this does not mean that it is true ….
Oil goes up, buy more oil …
Huh? Since the article was written, the price of oil (and petrol) has continued to rise at a massive rate. The profits of oil companies have increased dramatically, as has their share price. Did you buy into any oil companies? Prices on fuels and lubricants have risen by 21%, so did we all buy 20% less oil? Nope, we bought 18% MORE.
The oil companies do not just have us over a barrel; they have us over millions of barrels a day … Did you buy into oil companies yet?
See the Past, now look at the Now
OK, so you’ve got the message about the oil companies. Like the dinosaurs that they dig up, these huge juggernauts * will rule the world for a long time. Do not fight it, get used to it, and learn to profit from it. If you do not take my word for it, look at what the major investment managers are doing with their money.
Which fund managers are buying into oil companies, and how much are they buying? Are they hiring to make more money in the future than they did this year? The fund manager’s job is to make money in the future, so what are they doing now?
Fund Manager —–
What is in their Top Ten? (as at June 30th 2005)
Credit Suisse —- Mortgages, phone companies and finance companies.
Barclays: —– Total Fina Elf is number two, Exxon Mobil at seven.
Merril Lynch —– Total Fina Elf is number two stock on their list also Platinum Royal Dutch Shell is number ten stock
UBS Global —- Total Fina Elf is number 3, BP at number 10
Westpac Intl —- Exxon Mobil number 1 stock held
BT USA —- Exxon Mobil number 2
BT Global —- Exxon Mobil number 1
BT European —- Royal Dutch Shell number 1, Total Fina Elf number 3
Oil = Money
If the oil companies are not going to make massive billions of dollars worth of profits in future years, then why are the largest and smart fund managers investing into the oil companies? Perhaps with all their money and all their research, the major oil companies know that major oil companies will continue to turn gargantuan profits. Perhaps with the largest fund managers’ money and research, the fund managers have also come to the same conclusion: oil equals money.
Save the trees: shoot a beaver …
Sure, you can buck the trend against the juggernauts *. You can invest all of your money into stocks other than mining and oil. You can invest into “new” areas such internet stocks and bio-technology. You can invest into mortgages and finance companies like Credit Suisse. You can invest into eco-responsible, genetically unmodified,…[ad_2]