🤑Greedy When Others are Fearful 🤑
Everyone knows yesterday was a brutal day in the market. We don’t want to talk about it and I’m sure you don’t want to hear about it. Obviously, there are a lot of people selling stock, but let’s discuss someone who is buying A LOT.

At the end of every quarter, investors with over $100M in assets must file a 13F, which contains all of their current investments. Lucky for us, this means we get to see what Warren Buffett has bought and sold in Berkshire Hathaway’s $364B investment portfolio! The Oracle of Omaha was a net buyer of $41.5B in stocks – that means he grew the portfolio by that amount, net of any stock sales. This is the most Berkshire has purchased since the Great Financial Crisis. Talk about being greedy when others are fearful! Let’s look at one of these moves.

Liquid Gold!

If ain’t broke, don’t fix it. Berkshire has been bullish on oil stocks for more than a year and with oil now north of $100 a barrel, these stocks have seen a spike in their net income. This quarter Berkshire deployed an additional 7% of its portfolio into Chevron $CVX and Occidental Petroleum $OXY. These positions are now the fourth and sixth largest positions in the entire portfolio.

Buffett made a few more big moves, including one you might find a little surprising!

If you want to see those, check out our newsletter!
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Balancing Beliefs and Profits
How/do you incorporate personal beliefs in your investing philosophy?

With the rise of ESG, there has been a larger focus on more conscious investing. Are you strictly business economic focused or do have a personal "moral" compass that steers you towards/away from certain investments?

Some examples of my mental guardrails:
  • Tobacco Companies - $MO is a darling of the dividend community, but I do not want to invest in companies that profit off of a potential detriment to the human health.

  • Car Manufacturers - After working for $PPG as a Tier I supplier to the auto plants, I had the opportunity to work intimately with them daily. After seeing (and feeling) the ups and downs of the industry and the daily operations, I do not want to invest in these companies.

  • Oil/Gas Companies - My view on this has slightly changed. I used to be 100% anti-old energy. However, seeing the efforts of companies like $MPLX, $MPC, $CVX to make their processes as environmentally sustainable as possible has started to change my perception of these businesses.

So, Commonstock, what are your thoughts?
Do personal beliefs affect your investing decisions?
0%No
73%A Little
26%Very Much
0%Show me the money!
15 VotesPoll ended on: 05/14/22
Giro Lino's avatar
$2.8m follower assets
Why is Buffett buying oil companies?
If Buffett is adding $OXY and $CVX, he's looking beyond a two-year bull market on oil markets. IMHO, this is a strong endorsement that E&P companies will not run crazy Capex plans.

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What to watch for the week of 4/25/22
Are you prepared to take on the markets this week? If not, here is a watchlist that I created of some potential catalysts I’ll be watching for the week beginning April 25th. Check out the link in my bio for a more detailed break down of how I plan to trade this week and view my other graphics.

Hopefully this graphic can help you navigate your investing and trading decisions. Feel free to save it for reference, share it in your trade groups and repost it on your social media page. Also be sure to follow me. Good luck everyone!
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European DGI's avatar
$553.7k follower assets
Q1 2022 earnings reports from many Dividend Stocks
Buckle up everyone, this will be a crazy week! There are so many earnings coming up and this list isn't even complete!

Having said that, what's your favorite company reporting their earnings this week?


#Earnings #stockmarket
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Dividend Dollars Portfolio Update 🔥
The below is a summary of the full portfolio article located here.

This week we did some restructuring to our energy holdings and crossed our first $100 in earned dividends!

Market Recap:
We lost a day of trading this week due to Good Friday. Having the day off was a good ending to a bad week! The S&P lost 2.1%, Nasdaq 2.6%, the Dow was down 0.8%, with Russell making the only gain of 0.5%.

The information technology, health care, financials, and communication services sectors were the S&P’s biggest losers. Downward movement in the information technology and communication sectors were linked to moves in the Treasury market. The 10-year yield went up 12 basis points this week despite economic discussion that inflation was peaking. That discussion was followed by two days of declining rates following big CPI and PPI numbers for March.

The financial sector was down particularly because of earnings missed by JPM and WFC. Other banks for the most part surpassed expectations.

Portfolio Update:
To date, I have invested $8,020 into the account, the total value of all positions plus any cash on hand is $8,494.4. That’s a gain of $474.42 for a total return of 5.92%. The account is down $48.08 for the week which is a 0.56% loss.

This week we received two dividends. $13.77 from $UWMC and $3.17 from $BBY which officially has made this April my best month for dividends yet!

Trades:
Below is a breakdown of my trades this week.

On Wednesday I did some restructuring of the portfolio. I sold my whole position in $EOG and spun a majority of those into a new utilities position in $AY. There are a couple of reasons I did this. The IPCC report came out this week and is pretty grim about the future of our planet. It makes it clear that the devastating impacts of a climate crisis are occurring and the opportunity to curb terrible outcomes are already slipping through our fingers. The report says that greenhouse gas emissions must peak by 2025 to limit global warming close to 1.5 degrees Celsius as targeted by the Paris Agreement. Mitigating climate change continues to a growing and ever important focus for governments, business, and people.

Though the Ukraine conflict is where the world’s attention is at right now. I still believe that oil will be a good business model in the short term and large oil firms will also adapt to the changing environment, thus I am continuing to hold $CVX, but I believe that adoption of more “green” policies are inevitable and will come sooner or later. When this happens, oil companies will come under pressure and renewable energy companies will benefit. It will be a long transition, possibly over decades. But I would rather build positions on renewable energy companies now instead of later. For that reason, I sold my $EOG position and rolled it into a new position in $AY, a sustainable infrastructure company with a majority of its business in renewable energy assets (solar, water, and wind).


April 11th
  • T – added 2 shares at 19.59
  • SMHB – added 1 share at $10.99
  • UWMC – added 3.251476 shares through $13.77 dividend reinvested
April 12th
  • UWMC – added 3 shares at $3.97
  • MMM – added 0.1 shares at $148.70
April 13th
  • EOG – sold position (3.113613 shares) for a 45% gain
  • AY – new position, bought 6 shares at $33.56
  • BAC – added 2 shares at $38.86
  • T – added 5 shares at $19.44
  • SCHD – added 0.126727 shares at $78.91 (recurring investment)
  • XYLD – added 0.201191 shares at $49.70 (recurring investment)
April 14th
  • SBUX – added 0.25 shares at $79.68
  • UWMC – added 3 shares at $3.90
  • SMHB – added 1 share at $10.94
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Eric's avatar
$10.4m follower assets
Breakdown on recent Buffett Buys
$A makes up nearly half at 43.3% of deployed capital
$CVX and $OXY combine for another 32.2%
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Thx for this. Very interesting buys for Buffet lately. Expanding more and more to tech over the years it seems.
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Margin of Safety in Hydrocarbons
Factors Putting A Floor In Hydrocarbons
  1. Global Energy Demand
  2. WTI Crude Oil Curve
  3. Financing Standards
  4. Emission Scenarios - Demand Divergence
  5. Lack of Demand Destruction
  6. Demand (In)Elasticity

Midstream & Deepwater Drilling
  1. Energy Transfer ($ET)
  2. Transocean ($RIG)

This post was published on March 26, 2022. Appreciate your sign ups on Substack (the newsletter is free and aims to optimize for time spent and knowledge acquired when reading Andermatt's research.)
Oil & Gas | A Boom & Bust Industry In Transformation
In this post, I explored George Soros’ reflexivity framework and explained how it applies to the oil & gas industry. Why there is potential for upside excess and ways to think about asymmetric outcomes.

This post was originally published on March 10, 2022 and I couldn't be more thrilled to share it here on Commonstock!

If oil goes to $200, here's what I'm bullish & bearish on
Bearish:
$UBER $LYFT $DASH $GRUB and other gig economy transportation platforms
$AAL $UAL $DAL $LUV and other airlines
$KNX $JBHT $USX $SNDR and other trucking companies

Bullish:
$TSLA $F $GM $RIVN $LCID $FSR and other electric vehicle manufacturers
$SEDG $RUN $ENPH $TAN and other solar stocks
$XOM $CVX $OXY $PXD $COP and other oil stocks

Oil companies today have pricing power like never before. Automakers have pricing power like never before. Solar companies, they'll soon start jacking up their prices as demand for solar energy systems surges during the summer.

Meanwhile, fewer people are gonna use their vehicles to offer ridesharing services and food delivery services because already, fuel costs are eating up a majority of their earnings. Also, airlines will have to balance between finding ways to attract passengers to fly with them (through lower prices) and not deterring them through higher prices (since they want to pass down the higher fuel costs to customers).

Trucking companies have it the worst. The industry has been commoditized as all truckers are essentially independent contractors with their own trucks and they do their own deliveries. The smaller companies are more vulnerable to high oil prices. Meanwhile, the larger trucking companies will have to bump pay for truckers to justify them making deliveries amid the high fuel costs.

These times are unprecedented. We need to drill more oil. Bring back the fracking revolution. The OPEC cartel members have an incentive to produce a lot more oil than their current production target.

Reactivating nuclear power plants takes months or even a few years. Quadrupling down on renewables requires heavy investment and a lot more raw materials, which we are currently struggling to import. Plus, transitioning to a green energy economy takes a very long time. The green energy solutions we currently have aren't dependable. The wind doesn't blow all the time. The sun doesn't shine all the time and it doesn't shine every day and every month. Geothermal plants and hydroelectric plants can only be built in certain places. Biomass may seem viable but we don't want to cause food prices to rise because we're now removing food supply for the sake of energy production.
I don't argue that higher oil prices are good for ALL EV makers, but I can't rationalize the valuations of $RIVN $LCID $FSR and others. While I do believe $TSLA is wildly undervalued (watch their EPS growth this year), too much unearned credit has been given to others trying to follow in tesla's footsteps. These new players have a long way to go before justifying their current valuations, let alone any future growth.
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Commonstock is a social network that amplifies the knowledge of the best investors, verified by actual track records for signal over noise. Community members can link their existing brokerage accounts and share their real time portfolio, performance and trades (by percent only, dollar amounts never shared). Commonstock is not a brokerage, but a social layer on top of existing brokerages helping to create more engaged and informed investors.