Wednesday, February 17, 2010
ExxonMobil has been adding to its reserves, meaning that in 2009 it discovered significantly more oil than it pumped out of the ground. I'm fairly sure that this disclosure in fact proves nothing one way or the other about "peak oil" theory, but it sure speaks tanker loads for another assertion, that XOM is now and for many years has been the best run of the integrated oil companies. I bought 50 shares with summer job money in 1985, put them in the dividend reinvestment plan, and have never looked back (XOM vs. the DJIA since 1970). Gotta love the power of compounding, and it has provided an excellent (albeit purely psychological) hedge -- when gasoline prices go up, my irritation at the pump is offset by sweet contemplation of mother Exxon.
If you are 23 years old today, I strongly recommend doing the same.
XOM does rule! My father was given shares of what turned into XOM when he was 18 (in 1942). He has held on to those shares and the dividends put me and my two siblings through college (Ivy League schools) and now they are providing an extremely comfortable retirement for my parents. I love those guys!
OT: Breitbart's Big Government has an article up titled "Will Obama do to America what Corzine did to NJ?' that might interest you TH.
It describes how the wealth and income that has fled NJ and has a table showing the bracket creep in the income tax in NJ.