As I mentioned on The Panelist
This month's top 15 is full of financials and oil. Well, I like to bottom fish. And this month it finally worked. My exposure to big bad oil is starting worry my wallet and my heart.
1. Lehman Brothers (LEH - $44.05): Now that more than three years have passed since I left Lehman Brothers I feel it is appropriate to disclose my position in the investment bank. I have to admit that his has not been a great quarter to own any investment bank, but I have a lot of confidence in Lehman management and think they understand the risks inherent in liquidity that funding an investment bank requires. In other words, they are no Bear Stearns.
2. Usiminas S.A. Brazil ADR (USNZY - $63.12). I just keeping holding this company that was among the first privatized back in the early nineties. Soon, prudence and risk management will overwhelm my aversion to paying capital gains taxes; I will have to sell a bit.
3. Chevron Corp (CVX - $88.05) The fact that oil derivative (gasoline, etc) have not kept up with the price of crude means that integrated oil companies like Chevron are not keeping up. Also, it would seem the stock market doesn't believe that oil belongs at $106 as much as the oil futures pit does. I have to have some exposure to oil. And I like Chevron and Conoco (COP) better than Exxon (XOM).
4. Berkshire Hathaway (BRK/A - $130,800) - Wish I owned more. The stock is benefiting from the earnings momentum in Property and Casualty insurance plus it's considered a safe place to hide given Warren Buffett's disklike of complex derivatives. Like last year, I'll be holding on to the stock but unlike last year I won't be attending the annual meeting.
5. B P Prudhoe Bay Oil RoyaltyTrust (BPT - $95.00) This is an embarrassment of riches. I sold a bit recently and I wouldn't buy this now but I have so much in capital gains this year that I can't sell till 2008. As the royalty owner of the oil under the ground in Alaska, BPT is my least socially conscious investment. Since this is a mindless trust there is no shareholder meeting at which i can protest nor is there any proxy vote I can join. I'm looking for some sort of runnup to exit this position.
6. General Electric (GE - $37.56) (up from #14) - Multinational benefits from falling dollar. They are trying (but not yet there) to remake themselves into an eco-friendly company of the future. I just keep adding to the position on every pullback. What can I say, I think their eco/medical strategy will work. Do I forgive GE for denying that PCB's are bad for you or the Hudson River? No way!
7. Vanguard Pacific ETF (VPL - $64.66). Gotta have Asian exposure and I don't have the time to do research on individual companies in Asia right now.