02-13-2019, 12:58 AM
small disclaimer: I like to keep my portfolio at about 20 stocks so one for oil is enough for me, it's RDS but I'm sure some of the other big ones would fit my criteria very well.
In my opinion oil is a good business to be in right now. Yes it's volatile, yes there are some veeeery long down cycles, yes there are companies that look good and they go bankrupt in a couple of years. But overall I really like what happened to the industry in the last down cycle: Profitability has gone through the roof since the companies had to adjust... those who didn't adjust are gone... those who did are making more profit at $60 a barrel today than they were making at $100 a barrel back in the day.
I would never have a large percentage of my assets in oil related companies but I think they are quite decently priced for long-term hold while the markets in general feel a little overpriced.
In my opinion oil is a good business to be in right now. Yes it's volatile, yes there are some veeeery long down cycles, yes there are companies that look good and they go bankrupt in a couple of years. But overall I really like what happened to the industry in the last down cycle: Profitability has gone through the roof since the companies had to adjust... those who didn't adjust are gone... those who did are making more profit at $60 a barrel today than they were making at $100 a barrel back in the day.
I would never have a large percentage of my assets in oil related companies but I think they are quite decently priced for long-term hold while the markets in general feel a little overpriced.