I continue to find value in the energy sector and thus bought another 73 stocks of Equinor today. In total, I now own 273 stocks in Equinor as we speak.
The energy yield is all-time high, and both oil production and natural gas production is going upwards. Equinor’s attractive free cash flow and cost-savings program should give the firm more financial flexibility going forward.
For reference, this is what Peter Lynch told Barron’s this week about the oil sector and growth opportunities.
Oil is interesting.
Look, longer-term, solar, windmills really work. But you need natural gas and oil to bridge to this. Everybody’s assuming the world’s going to not use oil for the next 20 years, or next year. China might sell five million electric vehicles next year, but they might also sell 17 million internal combustion engines. They don’t have old cars to retire. There are no electric airplanes. Near term, liquid natural gas and liquid petroleum gas might replace diesel fuel for trucks.
I’m buying companies that I don’t think will go bankrupt. They’ve got to be around the next 18 to 24 months, or I have no interest.