Berkshire Keeps Buying Occidental Petroleum, But I Prefer Enterprise Products Partners

Summary

  • I'm bullish on energy stocks overall due to my view of compressed oil prices and the potential of policy tailwinds.
  • For OXY and EPD, their latest insider activities provide another support for a bullish thesis.
  • For OXY, Warren Buffett's Berkshire Hathaway keeps buying shares aggressively.
  • OXY's current price (~$48) is very close to the latest insider purchase price of ~$47.
  • I prefer EPD due to its lower P/E ratio, higher dividend yield, and more consistent earnings.
  • This idea was discussed in more depth with members of my private investing community, Envision Early Retirement. Learn More »
Insider Trading

Ildo Frazao

OXY and EPD stock: Why I like energy stocks in general

Readers familiar with my articles know that I'm, in general, bullish about energy stocks under current conditions. A key idea underlying my bullish view is that I think oil prices are too

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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 a beneficial long position in the shares of EPD either through stock ownership, options, or other derivatives. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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