Long on Exxon Mobil, Rio Tinto
by, 21st-September-2007 at 07:20 AM (2713 Views)
I heard a nice piece of advice on Bloomberg the other day.
"One must search the world for high quality assets," and so I did ... and I concluded that I want Exxon Mobil to be my main energy exposure.
If you didn't know Exxon Mobil, or just Mobil, is a US company, and the worlds biggest company with a market cap of $500b, its chart is nothing short of impressive as it has withstood recession and stock market crashes.
It pays a quarterly dividend of about 35 cents (although the rumour is US companies could start giving more back), and it simply prints money out, its stability and liquidity are unparalleled.
I bought XOM today at $92.97, I've put more buy orders in @ support prices ($86, $81.50), I think it'll hit a $100 soon with oil prices surging this much.
Bought a small amount of Rio at $102 (after my sell off), more orders in at $101/$100. I have an estimate of $120 for Rio, its testing its all-time highs in US/UK, im sure itll do it here either, but fundamentally because Rio is a very high quality investment anyway.
The volume of my purchases is extremely low, 40 shares of Mobil & 50 of Rio (simple tip, the more expensive company the less shares you buy!) My gearing is currently only at 3%.
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