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13-08-2019, 06:42 PM
(This post was last modified: 14-08-2019, 07:46 PM by dreamybear.)
I roughly had the same general idea, instead of investing in the likes of local stocks e.g. Keppel Corp, Ezion, Vallianz, MTQ, etc, why not go "a step further up" and invest directly in renowned oil majors, whenever they are "reasonably" priced.
However, like other Big Oil, BP to me is a super large scale and complicated business. In its AR, BP listed its major operations as :
- Finding oil and gas
- Developing / Extracting oil and gas
- Transporting & Trading
- Manufacturing and marketing fuels and products
- Generating renewable energy
- Venturing
Given its worldwide operations, it is also subjected to political risks.
But how do we value oil majors ? P/B, P/E, Price to Cashflow ? (Ref : https://www.reuters.com/finance/stocks/f...ights/BP.L)
Because of its various income streams/investment/divestment, I can't forecast next year earnings.
In the past few years, its share price has been stagnant, though it gives quite generous dividends. Do note however that it has a scrip dividend program which may dilute existing shareholders. (Ref : https://www.bp.com/en/global/corporate/i...idend.html)
Given its scale, I think BP may be more suitable for a basic investor like me(for dividends & country/currency diversification), and may not be that suited to those hardcore value investors who analyze businesses very deeply.
*vested in BP(ADR) since 2013*
However, like other Big Oil, BP to me is a super large scale and complicated business. In its AR, BP listed its major operations as :
- Finding oil and gas
- Developing / Extracting oil and gas
- Transporting & Trading
- Manufacturing and marketing fuels and products
- Generating renewable energy
- Venturing
Given its worldwide operations, it is also subjected to political risks.
But how do we value oil majors ? P/B, P/E, Price to Cashflow ? (Ref : https://www.reuters.com/finance/stocks/f...ights/BP.L)
Because of its various income streams/investment/divestment, I can't forecast next year earnings.
In the past few years, its share price has been stagnant, though it gives quite generous dividends. Do note however that it has a scrip dividend program which may dilute existing shareholders. (Ref : https://www.bp.com/en/global/corporate/i...idend.html)
Given its scale, I think BP may be more suitable for a basic investor like me(for dividends & country/currency diversification), and may not be that suited to those hardcore value investors who analyze businesses very deeply.
*vested in BP(ADR) since 2013*