You know what?
If the current Ukraine war had happened 2 years earlier, Hing Leong would still be around. And making money hand over fist at the current oil prices!
The owner of Hing Leong got the direction of oil right, but got his timing wrong...
Similarly, if that Singapore nickel trading scam operator was "legit" and not a scam, those high net worth investors would be celebrating their windfall of a win! That's if they went long.
On the other hand, if they had shorted nickel, their investments would have turned into zero...
Go big or go home?
If big daddy would to sell Chartered Semiconductor or NOL today, would they not have gotten more for their divestments?
Well, Warren Buffett didn't hope one day he'll breakeven on his lemons... Remember the last time oil went ballistic in 2008?
Even Warren Got Hurt By Oil Prices
Risk management is very personal.
Everyone is different.
Some may prefer to lick their wounds and walk away to live to fight another day...
Some will only stop fighting till they got taken out on a stretcher...
Some just want to make money.
Some prefer to be "right"...
Smol,
ReplyDeleteLast week, Carl Icahn exited the last of his 10% stake in Occidental Petroleum for a $1B profit, while *at the same time* Buffett bought up to $5B in Occidental, bringing Berkshire's stake to 10%.
Buffett bought AFTER the price has shot up 80% since Dec. Ok, he's sitting on a 10% gain in 1 week LOL.
Different investors, different objectives, different time horizons, different actions.
With over $26B of FCF annually, Berkshire can afford to spare a few B's to stake on trends & big ideas.
At 91 yrs and with more spending money than he ever needs allocated to cash & Treasuries outside of his Berkshire stocks allocation, he's not worried about -50% or -80% drop in the markets.
Spur,
DeleteI read that news with interest too!
I suspect Warren Buffett must be thinking I can't be buying near the top again right?
I guess that's one one way to bet that oil will go to USD $150 - $200 eventually?
Before demand destruction becomes the solution to high prices?
Hmm... Maybe I should visit Brunei to see if I can find a sugar mommy there?
LOL!
Hi Smol,
ReplyDeleteIt is more practical to focus on the present moment rather than hypothesis circumstances. This make one in control as per my perspective.
WTK
WTK,
DeleteOf course!
I'm merely making a parody of "what might have been" in investing/trading...
Hope is not an investing strategy. Wink.
In 2007, I also believe in $200 oil theory; now coming true?
ReplyDeleteWe need tons of cash on hand to believe in our dream. LOL!
CW,
DeleteIn crypto speak, you need diamond hands!
And hope that company still benefits from $200 oil going forward.
But if it has restructured or lessened it's focus on O&G, then its current price says a lot...