As the world economy continues to sputter, many billionaires are loading up on oil stocks.
Oil is a finite resource and will eventually become much more valuable than it is today.
Billionaires understand this, and they’re positioning themselves to profit handsomely when oil prices start to rise again.
For savvy investors, now is the time to get in on the action. Here’s a closer look at why billionaire investors are bullish on oil stocks.
Why Billionaires Are Buying Up Oil Stocks
In recent months, there has been a flurry of activity among billionaires looking to buy oil stocks.
These investors see oil stocks as a way to diversify their portfolios and hedge against economic downturns.
After all, owning oil stock gives them diversification from other asset classes and can act as a safety net in case of a recession.
Finally, some may also be buying oil stocks because they believe that oil and gas will remain viable sources of energy for decades to come — despite the growing popularity of renewable energy sources — and thus be good long-term investments.
Regardless of the motivation, it looks like big investors have started using these stocks as part of their portfolios.
Here’s Who Is Buying Up Oil Stocks
After not buying for years, Warren Buffett just recently started scooping up stocks again.
He’s buying them hand over fist, bringing his current oil investments to:
- $9 billion in Occidental Petroleum.
- $2.7 billion in Dominion Energy.
- Nearly $24 billion in Chevron.
Buffett knows we’re about to enter a new bull market in energy. He sees the cycle playing out … right now.
He’s building on to his fortune now by being “greedy,” scooping up valuable energy stocks at a discount.
All this while everyone else is still afraid and licking their wounds from 2022’s stock market shellacking.
He’s not alone.
Billionaire hedge fund manager and owner of the Carolina Panthers football team, David Tepper, has also been on an energy-buying spree, picking up:
- 7 million shares of Constellation Energy.
- 8 million shares of the natural gas company, EQT.
- More than 10 million shares of Energy Transfer.
On top of all that, activist investor Carl Icahn just bought 5.8 million shares in Southwest Gas … an amount totaling more than $440 million.
Asset manager Steven Cohen spent $104 million on shares of First Energy Corp. and BlackRock’s Larry Fink spent $52 million on shares of ExxonMobil.
As you can see, all of these billionaire hedge fund managers are loading up on energy stocks.
How You Can Take Advantage as an Investor
Investing in oil stocks is a great way to take advantage of the current oil market trend.
Oil prices have been up and down for years, but now we’re seeing an upward trend that could continue for some time.
As an investor, you can use oil stocks to capitalize on this trend. They help diversify your portfolio and give yourself more potential upside potential should oil prices continue to climb.
It’s evident that there are many reasons behind why billionaires are buying up oil stocks.
This could be due to the increasing demand, or because they believe that the price of oil will increase in the future.
Whatever the reason may be, this trend is likely to continue and have a positive effect on the global economy. As an individual investor, you can take advantage of this trend by investing in oil stocks.
Make sure to check out The Oil Super Bull Summit where I give you the details on my No. 1 oil stock for 2023.
Hint: It’s a North Dakota-based miner I believe has the power to hit 100% gains in the next 100 days.
To good profits,
Chief Investment Strategist
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