Saudi Aramco reportedly generated revenues of $354.9 billion and a net income of $111.10 billion in 2018. Yet, Mr. Market was paying $35.10 for Aramco shares on 31 December. Thus, Saudi Aramco could be the greatest value investment of all time.Read more
All this should prompt us to ask the question: is Exxon-Mobil’s business sustainable? Can any company even Exxon survive such massive losses in revenue and net income.
There is no good answer here because we have never seen a company take such losses and survive. Nor have we seen a company suffering such losses keep rewarding shareholders so generously.Read more
The oil industry will survive the coming of Hyperloop and electric cars; but it will look nothing like the one we have known. Instead it will be smaller and only a few companies in it will make money. Smart investors will stay out of oil for the foreseeable future, unless they are looking for something to short.Read more