>>> That earlier post about BP sinking pension funds was fascinating. <<<
Let's not forget what it does to the British pensioners.
I can't imagine Great Britain sitting silently by while the US tries to destroy BP. I imagine there will be a lot of behind the scenes politics going on.
I don't see bankruptcy for BP. I see BP doing as XOM did, drag it out for years, don't pay more than you need to.
A lot of talk out there about BP being a bad company, including Don Coxe. Just 6 months ago, sources like Value Line were saying BP was a quality company.
In time, and that's what I'm concerned about, I believe BP will rebound. It's not like we don't need the oil and gas. Someone will purchase it even if some Americans decide to boycott it.
If I'm wrong, then diversification will work for me. BP only represents 4% of my portfolio. I'm a believer in equally weighted positions in various sectors of the market.
Meanwhile, all dividends will be reinvested. It will take time to see if this is the correct strategy or not, but I'm trying to keep emotion out of my business decisions. I think BP survives.
I realize there is more certainty with other oil related companies. I own TOT as well. Their share price is declining as well. I'll stick with both, reinvest dividends in both, and continue to keep the positions at a level where neither of them represents more than 4% of my portfolio. Since my portfolio yields more than 4%, it is much easier to make losses up and do it in a short period of time. |
