Buffet bought COP at the wrong time and now he has been buying PSX at the wrong time. He can't seem to get the petroleum cycles. I would not be surprised to see him beginn selling part of his holdings.
wimuskyfisherman: You and me both. I am LONG 100,000+ shares of PSEC. Been buying and reinvesting the dividends for some time. Best place I know for high yield monthly paid dividend. PSEC is a long term hold for me. As for FSC, I recently opened a 7,000 share position. That is about the way I opened PSEC in the beginning. I like what I see there too. Buy when you can't stand the languishing anymore.
I repeat this often. Unless you fully understand HOW the crude oil price cycle works stay out of petroleum company investments. IF you believe we are going higher on the price of crude soon, then you should NOT be buying downstream stocks. Look to the pure E&Ps and service companies. PSX will be fine in the long run.
Long term he will be fine. Ignoring the crude price cycle however, can catch one buying in at too high a price. Coming higher crude prices mean lower crack spreads and declining downstream profit.
Buffet got it wrong in his timing to buy COP. Seems they may not understand how crude price work. My guess is they are wrong on PSX too.
Be careful. You just might be on the wrong side of the crude cycle. IF you believe crude will be soon on the rebound you historically should not be buying downstream refiners. My guess is the E&Ps and service companies are a far better buy at this juncture.
mr.phil2u: I hold 100,000+ shares of PSEC. I owned a few thousand shares when the dividend was cut. I started buying in ernest at that point because I saw great value where others did not. Today I collect $100,000/year in dividends. I have never sold a single share of PSEC and have no plans to do so. Yes, I have a capital gain that might cause many to sell. Not me. It is long term income for me. I own FSC to a lesser degree, but I bought it for a very high income. I will be adding more. LONG FSC!
I added to my FSC holdings today. I am not a trader and I have never shorted any stock. I am far less interested in capital gains than I am maintaining the fat monthly high yield dividend.
I made a sizable investment after reading Rida's article on Friday. I added more near the open today. LONG MCC!
Sentiment: Strong Buy
You seem confused. The downstream portion was NOT sold, but spun off to shareholders in one of the most shareholder friendly moves in recent history. For every two shares of COP the shareholders received one share of the new PSX company. The dividend was left unchanged. Put today's valuation of the two companies together to get the true value of the spinoff. Jim Mulva was CEO at the time not Ryan. You should not be spouting off about Ryan when you don't even know the facts of the spinoff. Get a life!
Sentiment: Strong Buy