Exxon Mobil And Chevron: Heed Buffett, Ignore The D.C. Noise

Summary

  • In investing, two seemingly contradicting abilities are actually both essential: Deciding what to focus on and what to ignore.
  • The latter ability is probably even more important in our time when we're constantly bombarded by news and data.
  • The goal of this article is to look beyond the flood of news surrounding Exxon Mobil and Chevron and see the underlying essence.
  • The current shortage in the oil and gas industry is structural and will need a long-term solution, and both will play in the solution.
  • Both also provide simple capital return plans that pass a common sense test. Chevron is even better positioned with a dividend cushion ratio.
  • Looking for a helping hand in the market? Members of Envision Early Retirement get exclusive ideas and guidance to navigate any climate. Learn More »

Oil pump jack and barrels on newpaper with growth of price of crude oil. Stock market of crude oil, investment and petroleum industry.

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Thesis

There's no lack of news surrounding big oils, especially Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX), these days. The goal of this article is to look beyond the obvious (and even the confusion) and see the essence and the second-order

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This article was written by

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Envision Research, aka Lucas Ma, has over 20+ years of investment experience and holds a Masters with in Quantitative Investment and a PhD in Mechanical Engineering with a focus on renewable energy, both from Stanford University. He also has 30+ years of hands-on experience in high-tech R&D and consulting, housing sector, credit sector, and actual portfolio management.

He leads the investing group Envision Early Retirement along with Sensor Unlimited where they offer proven solutions to generate both high income and high growth with isolated risks through dynamic asset allocation. Features include: two model portfolios - one for short-term survival/withdrawal and one for aggressive long-term growth, direct access via chat to discuss ideas, monthly updates on all holdings, tax discussions, and ticker critiques by request.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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