The Oil Tankers Are On Their Way
One of the tricks I use to think of the stocks I hold as real businesses, just like the operating companies we own, is to get a physical representation of the firm, putting it in an investment cabinet. Now that I am building what I intend to be a 25-year energy portfolio as a personal side project for my household, I already have replica die cast oil tankers on their way from retailers and eBay. I’m having a hard time finding a comparable quality Total SA tanker, if they are even manufactured.
I also bought the entire 1,800 page four-volume set The History of Royal Dutch Shell by Oxford University Press. Given that it has been one of the top 20 performing stocks of all time, ringing up wealth at more than 14% compounded annually with dividends reinvested since 1914 (or 1911 – I can’t recall the exact year it went public in the United States) because people constantly underestimate and undervalue it, I thought it would be interesting to read.
Yes, folks, I really do find that exciting. Contain yourselves. I know you can’t handle this level of sexy. I’ll be sitting here playing my video games, reading my books, revving my toy oil tankers, and collecting dividends. Embrace the inner geek.
Update II: On August 27, 2015, I wrote a post called Let’s Talk About Investing in Oil Stocks, which provided some further clarification about the interesting, and unique, dynamics that have historically applied to long-term investments in the oil majors.