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  • AvatarBrian S
    Participant
    Post count: 24

    Hi Sean, I see Warren Buffet upped his stake in SU in August. What are your thoughts on this stock?

    Thanks,
    Brian

    Sean HymanSean Hyman
    Keymaster
    Post count: 3328

    Warren Buffett (two t’s) is likely in it for the yield and eventual appreciation that if it took longer than his lifetime, he’d be ok with.

    But why we’re not in it is: 1) We’ve got plenty of energy exposure and adding another energy stock doesn’t add value in diversifying anymore and 2) they carry way too much debt and there are better picks out there.

    So, it doesn’t mean that stock can’t go up. It means its higher risk than I like due to it being debt-heavy. From a technical standpoint, it could have a snap-back…but I could say the same thing for our energy stocks that have far better fundamentals. And our confidence comes from the strength (and cheapness) of the fundamentals.

    AvatarBrian S
    Participant
    Post count: 24

    Ha! buffet….I haven’t had breakfast yet, so I must be hungry ūüôā

    Good points Sean, thanks for your insight. I appreciate it.

    Peace,
    Brian

    Sean HymanSean Hyman
    Keymaster
    Post count: 3328

    People commonly misspell his name. (I’m hungry too. ha-ha!)

    You’re welcome.

    Investing is relative. Should I invest in XYZ stock? It depends. What else could the same money be put into and does it stand a better likelihood of surviving and thriving. So I don’t look at investing as a “should I invest in X”. I look at it as “Is X the best opportunity I can find, since this capital could go into this stock or another”. Many investors just think, “Should I invest in X?”

    AvatarBrian S
    Participant
    Post count: 24

    I agree Sean. “Is this the best opportunity I can find?” is a better question to be asking. Thanks again.

    Sean HymanSean Hyman
    Keymaster
    Post count: 3328

    Glad that was helpful. Since we all have a finite amount of money (even Buffett), it’s always good to ask that question.

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