![]() Need Assistance with Your Business Needs?.Tax Incentives For Industrial Businessesįor more than 100 years, Alabama Power has acted as a reliable resource for business and a trusted partner in economic development.įind answers to frequently asked questions about Alabama Power's business products, services, billing and more.Sustainability Solutions for Businesses.That’s why we offer energy-related products and services specifically designed for commercial and industrial customers. ![]() Our goal is to help you save money, increasing efficiency and productivity, while helping to build your business. Shop now!Įxplore Alabama Power's most frequently asked questions and the corresponding answers for our Residential services. ![]() Smart Neighbor by Alabama Power is your source for the highest quality energy efficient appliances, electronics and other energy efficient products. Explore and learn all the ways we are working to improve your life. All rights reserved.Alabama Power offers a variety of products, programs and tools to help you save money and energy in your home. A list of all recommendations made by Smead Capital Management within the past twelve-month period is available upon request. In preparing this document, SCM has relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources. Current and future portfolio holdings are subject to risk. Portfolio composition is subject to change at any time and references to specific securities, industries and sectors in this letter are not recommendations to purchase or sell any particular security. It should not be assumed that investing in any securities mentioned above will or will not be profitable. Past performance is no guarantee of future results. The information contained in this missive represents Smead Capital Management's opinions and should not be construed as personalized or individualized investment advice and are subject to change. We will “take arms against the sea of troubles” in oil price volatility and the continuation of the bear market in the S&P 500 Index. After all, the free cash flow numbers are making debt repayment last for a short time and copious dividends and stock buybacks last much longer. Lastly, the sheer force of the returns these oil companies could make with prices exceeding $80 per barrel for a decade makes Warren Buffett’s mouth water. We will not be shocked if the 2008 high of $150 per barrel gets knocked out in this secular cycle.Īdditionally, the chart below shows that the retail investor enthusiasm for all things FAANG and tech have reemerged in this bear market rally: The best way to expedite a faster transition to cleaner energy is to drive the price of fossil fuels to the roof. just passed a major bill to subsidize clean energy. As we have said many times, “The only thing better than being smart is knowing who is!” As Munger says, “Plagiarism is completely acceptable in the investment business.” Peter Lynch, Sam Zell, Jerry Jones, Harold Hamm and Warren Buffett/Charlie Munger have backed up the truck over the last three years in the oil and gas patch. Obviously, we are keeping very good company in the oil patch. Therefore, why are we willing to "take arms against a sea of troubles" in a major correction in the oil price and in oil stock prices? The answer lies in the evidence. ConocoPhillips (COP) looked attractive in the $30 per share area and has provided dividends and corrected to around $90 per share.įinally, we invested in Occidental Petroleum in the fall of 2021 starting at around $25 per share after getting clobbered on it on the way down in 2019 into the COVID-19 bear market of 2020. Continental Resources (CLR) share price started in the teens in mid-2020 and today faces a going-private offer of $70 per share from the founder, Harold Hamm. Ironically, it has been our least successful investment in oil with a move from $80 per share to the current level of $150 per share (plus copious dividends). We then tax-loss sold OXY at around $15-17 per share and bought more CVX at around $80 per share average price. Our outrageous fortune in oil started with losing money on Occidental Petroleum (OXY) and buying Chevron (CVX). The sharp oil price decline has combined with a drop in the 10-year Treasury bond interest rate to restimulate the large-cap tech trade which had dominated the stock market for ten years. This decision has been a ticket to "outrageous fortune" until the recent sharp correction spooked investors. With these historical underpinnings, we felt compelled to invest in the oil and gas business in 2020-2022.
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