In this week’s show
04:05 – Q1: A fair while ago, I looked at what Warren Buffet was buying. I noted that he had a significant cash holding. His fourth biggest holding was Coca Cola, and his 5th was Chevron. I noted that there seemed parallels with Woodside. The price I paid for my Woodside purchase is returning a grossed up yield of %9.5. The current price is around %43 higher than what I paid.
I am way overweight Woodside, but that strategy paid off when I was way overweight JB HiFi.
I find it easy to “buy them when they are cheap”, but difficult to “sell when they are high.” Especially when the grossed up yield is strong. My remaining JBH shares are paying 12% grossed up.
I have read that when Russia invaded Ukraine, Woodside’s income tripled and their dividends doubled. Buy they said that “this time it’s different.” Do you have any thoughts on that?
I would appreciate your thoughts on these aspects.
08:51 – Q2: Oil has been on a wild ride this year with WTI nearly doubling at one point. Now that we have a ceasefire with Iran, do you think we’ll see oil come back to more normal levels, and what does that mean for Woodside and Santos holders? I’m also wondering how the drop in oil prices might flow through to inflation here in Australia.
10:27 – Q3: I noticed NextDC jumped nearly %12 this week on its hybrid securities offer, and tech has rallied well off its lows. I’ve been underweight Australian tech stocks because the valuations seemed streched, and have been wary of AI being a threat. Have I missed the boat, or is there still an opportunity to add some exposure?
