A Thematic Approach
My investment strategies tend to be driven by themes: I identify trends that can put wind in the sails of companies positioned to benefit, then I analyze those companies to pick the most likely winners. Many of these trends are long term, such as the price of oil, which I believe is headed higher in the coming years, or the rise in the use of alternative sources of energy. Others are shorter-term in nature, such as the current and ongoing gasoline price crisis in California. This issue, my first as chief investment strategist, focuses on all three of these trends and the stocks that represent the best ways to play them.
In future issues of The Energy Strategist, in The Energy Letter every week, and in special alerts as warranted, I’ll continue to survey the entire energy scene and provide regular updates on Portfolio holdings and my current Buy, Hold, and Sell advice on a wide range of stocks. I’ll also keep identifying the most attractive themes in energy, both long-term trends and unique situations that might arise, and share my best ideas with you. And I look forward to reaping serious profits with you all along the way.
In This Issue
1. California drivers are experiencing sky-high gasoline prices, but their pain can be investors’ gain. We examine the causes of the crisis and the reason that high-quality West Coast refiners can benefit. See Opportunities in California’s Gasoline Crisis.
2. An in-depth look at why oil prices are likely to head higher over the long term — including an explanation of why higher prices won’t necessarily reduce consumption. See Why I Am Long-Term Bullish on Oil.
3. Most biofuel companies will ultimately fail, but palm oil is uniquely attractive. We explain why and point to the likely winners. See Surveying the Biofuel Scene.