Welcome to the Energy and Capital Weekend Edition — our insights from the week in investing and links to our most-read Energy and Capital and sister publication articles.
You know these guys, right?
That’s Buffett, Icahn, and Paulson — three of the most legendary investors in the game.
But do you know what they all have in common besides being multi-billionaires?
They each added to energy positions in the last quarter.
What are billionaires buying?
At the end of each quarter, fund managers have 45 days to report their activities to the SEC. That deadline just passed for the second quarter, and here’s what we learned…
Buffett, whose net worth is $47 billion, is long ConocoPhillips, General Electric, Nalco Holding, NRG Energy — either on his own or through Berkshire.
Here’s how the holdings break down:
ConocoPhillips (NYSE: COP): 29.1 million shares
Exxon Mobil (NYSE: XOM): 421,800 shares
General Electric (NYSE: GE): 7.77 million shares (and an undisclosed amount of preferred shares)
Nalco Holding (NYSE: NLC): 9.15 million shares
NRG Energy (NYSE: NRG): 6 million shares
And here’s what Paulson, the $12 billion-dollar-man who helped Goldman create securities that were designed to fail is buying:
Exxon Mobil (NYSE: XOM): 9.17 million shares
Mariner Energy (NYSE: ME): 10 million shares
Apache Corp. (NYSE: APA): 3.4 million shares
Mirant Corp. (NYSE: MIR): 18.2 million shares
Deven Energy (NYSE: DVN): 3.3 million shares
Smith International (NYSE: SII): 2 million shares
Cheniere Energy (NYSE: LNG): 7.46 million shares
Icahn, the poorest of these fellows with only $10.5 billion, is equally bullish on energy, Here are the energy stocks he’s into:
Anadarko Petroleum (NYSE: APC): 2 million shares
NRG Energy (NYSE: NRG): 2.37 million shares
Ensco (NYSE: ESV): 240,000 shares
Chesapeake Energy (NYSE: CHK): 12.74 million shares
Well, the simple answer is rising prices for both oil and electricity.
With peak oil approaching, they know demand is about to outpace supply, and the companies able to access the increasingly hard-to-get nectar are going to be worth a pretty penny.
And with increased regulatory pressure on coal, utilities are adding more and more megawatts from renewables and natural gas.
The utilities you see these guys buying — NRG, Mirant, Constellation — are at the forefront of this transition.
It’s pure fundamental analysis…
World needs lots of energy; there’s not enough of it; the price is going to rise.
They aren’t getting caught up in — and trying to react to — the market minutia we hear about on a daily basis: unemployment, housing numbers, consumer price indices, etc.
They’re simply making bets on the certain future of energy.
That’s what we help you do each and every day with articles like those below.
Before you read those, I’ll leave you with this recent quote from John Hofmeister, former Shell Oil President:
I think over the next 5 to 10 years we will peak in the production of what’s called conventional or easy oil. We will not in anyway peak relative to the resources left in the earth. But the resources left in the earth will be higher risk and higher cost to produce, which will increase the cost basis on which ultimately gas prices are set.
Call it like you see it,
Energy Stock Technical Analysis: How to Spot Energy Stock Trends
Editor Ian Cooper addresses a reader’s concerns, and expands on a trading system discussed in recent articles.
Going Mobile with Full-body Scans: Buy American Science & Engineering Inc.
Editor Christian DeHaemer talks about the upside of the full-body scan stock.
Alternative Energy Infrastructure: Why this One Company will Control Midwest Wind Power
Editor Jeff Siegel discusses the one company that could eventually control 12,000 megawatts of Midwestern wind power.
Nanotechnology Investments: Nanotech Stocks are Poised for Growth
Editor Steve Christ examines a new generation of wealth made possible by nanotechnology investments.
Sitting Pretty: One Company’s Recent Discovery that it’s Sitting on Millions Worth of Crude
Thanks to a world-changing Cold War blunder, investors have a brief window to bank 180 times their money on this tiny oil company’s $1.44 shares… Energy and Capital tells you everything you need to know about this hidden treasure trove of crude in this video.
Tiny Nuclear Company Leads American Resurgence: The Nuclear Energy Story Fox News Isn’t Telling You
This just-released report shares with readers the details on a little-known nuclear company that’s set to explode on certain hidden news that could bank you $36,950 by next summer.
Underwater ‘River’ of Oil Confirmed in Gulf: Large Underwater Oil Plume Confirmed
Analyst Adam Sharp examines the newly-discovered plume of oil in the Gulf of Mexico.
Chinese Water Stocks: Chinese Drought — Not Floods — is the Real Story
Editor Nick Hodge reveals why drought — not flood — should be the real Chinese story grabbing headlines these days.
Sustainable Development and Responsible Investing: A Not-to-be-Missed Conference, September 15-18, 2010
Focused on the world of environmental and sustainability finance, renewable energy and efficiency investment, application and implementation strategies in their major forms, this is an all-encompassing conference platform for sustainable investment, infrastructure, and regional management with a central focus on the global energy transition.