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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (70091)	8/4/2008 5:57:16 AM
From: Elroy Jetson	Read Replies (1) \| Respond to of 74559

Chevron is in the investment business as well. Obviously there are existing areas of expertise that make some investments less risky. The other investment criteria was the investment had to be: A.) quite large to justify the use of management time, and; B.) fit in with a company which made decisions slowly and could wait for a long period for payback. This greatly limited Chevron's investment opportunities but also eliminated many potential losses. This especially eliminated many transactional oriented opportunities. Yet when Chevron bought Gulf Oil, the decision had to be made very quickly which did not fit Chevron's structure so the Board gave our resident genius CEO George Keller no maximum for the bid. George had to pencil out a number based on his personal instinct and this proved to be one of Chevron's best purchases. Not many investments at Chevron were made on that basis, almost none. Working in Chevron Industries, the new ventures / alternate energy arm of Chevron decisions to go into new businesses were made very slowly. .