CVX. Foolish to do a relative p/e comparison of CVX to XOM which the author did. P/e of XOM will almost always be higher than the other integrated oil companies, because it's biggest, has best balance sheet, and arguably is best managed. As someone stated here, perhaps XOM's the best managed of any (large) company. Can't therefore correctly conclude CVX is cheaper - a bargain - just because its p/e is lower than Exxon's.
However, if you are a young guy and a value investor and a long-term buy-&-holder, you could likely buy CVX here at current price, add to it occasionally, and eventually retire comfortably just from doing that. You might have no need to buy other stocks or play the market.
finance.yahoo.com
Plenty of people owe their comfortable retirement to making that one buy decision and holding on. I worked for CVX in the 1990's as a consultant, and came across several such people. (aside: Fabulous company to consult for. They had money, were willing to spend it on something they believed in. And they did not cut corners to jeopardize quality or safety. jmo)
Good gosh, CVX stock reminds me I know someone in my neighborhood who was oldest of ten kids, ran away from home and was on her own at 13 because there wasn't enough beds/space in their two-room family shack, married twice, left with a kid, broke, no money, no job, no education, and by dint of perseverance got a low-level job at an aerospace company. Every dollar precious, she saved, learned about investing, began picking a couple of conservative companies she saw around her. This after she guessed she could do as good or better than the broker(s) she initially relied on for help/expertise when she started out. She's retired now in a paid up home with a nice portfolio consisting I believe, of primarily Chevron stock.
Oh well, do as I say, not as I do. Sorry I ever sold part of my CVX holdings, sorry I did not continue to reinvest dividends back into the stock, and sorry I have the position in an ira (where I won't get capital gain break if I sell). I show I still have shares acquired in '05, '06, '08, '10, and this January. Maybe not much compared to some of my other holdings, but glad for what I still do have.
Paul Senior |
