Name: 私の完全な石油株ポートフォリオを共有する（巨大な配当金と巨大なボラティリティ (SHARING MY COMPLETE OIL STOCK PORTFOLIO (huge dividends & huge volatility))
Uploaded: 2021-01-14T09:20:00.000Z
Duration: 30 min 25 s
Description: VoiceTubeの動画で発音を聞きながら英語表現を覚えよう！学べる英語：

Three of my stocks are oil companies, and if you've been following my channel for a while, I will link in the description below.

I've already shared two videos on investing in the oil industry.

The first video did an overview of all the lessons I've learned over the years investing in oil stocks.

The second video shared one of my positions that I own that really broke.

Ah, lot of the rules that I typically try to follow as an investor.

And today, by popular demand, I have one subscriber in particular who has been reaching out, asking me, Hey, e.

And when it's part three of your oil, Siri is gonna come out.

I'm really interested in these oil stocks.

Well, I'm finally doing that video, and so I'm gonna share the other two oil stocks that I own today.

These air new stocks that I have never shared on my channel before, and the 1st 1 is Chevron Ticker symbol C v X, and the 2nd 1 is Royal Dutch Shell Ticker symbol RD s A.

Could be a fun day of dividend stock investing.

I want to do a quick overview of the three oil stocks that I own.

I want to share the reasons that I own each particular oil stock Men at a meta level frame.

How I think about investing in oil companies in my personal stock portfolio at a high level before even get into the oil stocks.

One point that is so important is, unfortunately, this industry is prone.

Unfortunately, there was a tragic event with one of my holdings.

BP. 00:01:57.770 --> 00:02:1.700  This is before I owned the stock, actually, but there was an oil spill. 00:02:1.700 --> 00:02:8.000  It was an oil issue with the deepwater horizon, Deepwater horizon rig. 00:02:8.070 --> 00:02:15.740  And so when these disasters tend to strike, it can create obviously a lot of trouble, a lot of havoc out there.

They're very tragic, unfortunate events, but also, from a stock investing standpoint, they can create a lot of risk.

And so overall oil stocks actually are not a huge percentage of my total portfolio by dollar amounts.

But of the 5.5% that I have allocated for oil stocks, do I put them all in one oil stock note?

That would be too much concentration of risk.

In my personal opinion, this is an industry that totally Warren's intra industry diversification.

And that's why I have spread my risk across three oil stocks.

And so we'll get into old three of them today.

So 1st 1 is Chevron. 00:02:58.710 --> 00:03:1.490  This is actually the first oil stock that I purchased. 00:03:1.490 --> 00:03:9.400  And when I look at things in retrospect right now, if I could only own one oil stock if you just told me Hey, Ian, you can't diversify. 00:03:9.400 --> 00:03:10.960  You're not allowed to diverse five.

Like I said, I like to diversify in this industry because it is prone to some turbulence over the long term.

That being said, if someone said, Ian, you can absolutely not diversify the one oil stock that I would likely buy and hold forever is Chevron.

We'll get into some of those points in a minute.

Why I like this company so much when, um, the price of oil tank, you may remember from my video if you have not seen it yet.

A link in the description below the price of oil tanked a few years ago.

This is because OPEC had flooded the market with with oil. 00:03:54.200 --> 00:04:3.980  They had up to their production levels, and the reason that they did this is they wanted to fend off competition from some of the United States based oil fracking companies. 00:04:3.980 --> 00:04:5.690  And so they drove the purpose. 00:04:5.690 --> 00:04:13.320  The price of oil down purposefully to try to push off competition in the price of oil fell to $35.

And at those prices, obviously the oil companies all on tanked and share price.

And for me, I like to being that oil is very cyclical, being that it's an industry that has its ups and downs being.

It's an industry that carries a lot of risk.

I personally have chosen to focus on the oil super major So that's what these companies are that I own.

They're large diversified oil companies, really large mega cap oil companies.

Anyways, the price of oil has now recovered.

So the price of oil has certainly recovered from its low. 00:04:57.420 --> 00:05:3.430  And what I've what I've learned over the course of the years investing in oil is it is just so highly cyclical. 00:05:3.430 --> 00:05:10.810  And I'm to show that in as an example from my own stock portfolio right now in the various purchase prices that I've experienced over time.

So my best purchase price on Chevron September of 2015 was $76.62.

By contrast, the worst purchase price that I had This is when I paid ah lot more for Chevron.

And so obviously over the years, the stock prices fluctuated and it's mainly been because the price of oil has fluctuated.

Unlike some of the consumer, non cyclical companies that I own, there's not really a competitive mode in terms of brand. 00:05:56.950 --> 00:06:1.640  Maybe there is that the final at the pump, there's some some differentiation. 00:06:1.640 --> 00:06:12.010  They're quite frankly, I like Chevron because I believe, based on their branding and based on wisdom, that's been passed to me from one of my childhood friends who is very into cars.

That a chevron with tech Ron that is the best quality oil or gasoline for one's vehicle.

So if one has a vehicle that they cherish that they want it to last a long time, they take good care of their car like I do.

I never take it through the car wash because I don't want them to scratch it.

I have been led to believe at least that Chevron is the best quality gasoline.

So certainly there's some branding at the pump in some differentiation.

But at the end of the day, for I am a corner case for most consumers.

They're shopping for oil on price, gasoline on price.

There's really no competitive mode. 00:06:55.450 --> 00:07:0.360  And so the stocks go up and down and fluctuate as it pertains to the price of oil. 00:07:0.430 --> 00:07:9.570  Now, I would say the strongest oil companies, what they've done is they have got in their cost of production to the lowest possible mark. 00:07:9.580 --> 00:07:17.410  The lower the cost of production, the lower it cost to extract oil from the earth, the better their competitive mode is.

Anyways, you can see here these are just some wild swings.

Just ah, really, Just over two years later, it went from 126 down to 76.

I literally I bought it both of these points and in between as well, and I bought this stock many times have averaged into Chevron over the years, and right now it's at 1 10 And so right off the bat, one of the lessons I have learned is Look, if I was getting started again, I own no oil stocks. 00:07:45.140 --> 00:08:4.560  I personally would probably pick up in oil stock here just because I would want representation in my portfolio I like having representation from most most major sectors, and I like having representation from oil and at 110 versus my price in 2013 of 1 26 That's a reasonable entry point and you'll see more in a minute. 00:08:4.560 --> 00:08:7.110  Why a za function of the dividend yield? 00:08:7.380 --> 00:08:10.440  That being said, it's a far cry from $76.

And so now that I own oil stocks, they're at 5.5% of the portfolio.

I could see oil representing a CZ much a 7%.

I don't want it to be much more than 7% of the portfolio if the price of oil lever goes down.

If these stocks correct in a major way again like Chevron, for example, gets maybe down below $100 it gets into the eighties and nineties, even the seventies, I would add more, and I'd be comfortable bringing my position up a little more.

But at current prices, I'm certainly not adding to these stocks other than reinvesting dividends, and the reason for that is the price of oil has recovered quite a bit and $75.

In the scheme of things that's actually a pretty high point for oil.

If you look at the long, long term oil chart, it's been all over the place and 75 is towards the top and so I just don't know where the price of oil is going to go from here. 00:08:59.820 --> 00:09:5.550  But I certainly don't want to average in and buy more oil stocks here other than reinvesting dividends. 00:09:6.000 --> 00:09:15.500  That being said like like I said, if I had no exposure, I'd probably look at it a little bit differently and the reason being is Chevron's dividend is $4.48 per year.

My yield on cost on my best purchase prices of 5.85% and growing because these guys tend to raise the dividend over time.

They had to stall the dividend increases during the oil crisis a few years ago when the when the price just plummeted.

But they did not cut the dividend and typically these guys raise the dividend over time and they have a really good track record of that and so 5.85 yuan costing my best purchase price.

So you can see again the discrepancy there, how wild these fluctuations are and how they can affect one's yield on cost. 00:09:57.760 --> 00:10:6.220  The current yield on cost just for someone literally buying today is a 4.4% because it's 4.4 That's a reasonable starting yield. 00:10:6.220 --> 00:10:14.100  And that's why I'm saying, if I had no exposure to oil, I'd probably pick up some Chevron here, a very small position, have some exposure in my portfolio.

And the reason I would do that, hypothetically speaking, too.

Speaking about my personal way, I personally structure my portfolio.

It's over 4% and it's growing, and certainly oil is not at an all time high.

So there's certainly, you know, it's kind of in the middle.

It's in the middle of the range, and I That's why I like it here now.

I like this company because they raise the dividend over time.