It is true I had some exposure to oil, but not much. That has been a general rule for a long time because there is no reason to expose my savings and my job to the same risk. I was even further limiting my exposure because the price of oil was too high.
I did, however, tell friends and co-workers to bail on GDP, CHK, XCO--quite proud of that. You don't think I indirectly moved the market, do you?
As far as financial advisers, they know the risk and I am sure they diversified. I am sure some people were wiped out when XOM dropped over 15%.
Look, there is nothing wrong with going high-risk, high return, long shots. A lot of people made money trading Enron. I missed out because I thought Enron over-hyped and I did not see the revenue potential they did. I am rarely the smartest guy in the room.
If you got into BECC for a few cents and sold, good for you. As with GDP, CHK, XCO, I look at the value of reserves, what they are paying to replace them, and, if applicable, debt level. Not really a technical stock analysis. I do not look at the awards the CEO got, who he had lunch with, his opinion on world oil markets, or how many times he appears on CNN. That's my style and I am sticking with it.
By the way, I made a great return buying cellular phone stock because I thought it was going somewhere. That's my style.
