A supercycle resource investor needs to be “in the game” today. Oil demand will go higher. The Asia growth story is real. The world’s oil supply will not be able to keep up with global demand. And oil prices will skyrocket at some point due to some geopolitical event. To make money in resource investing – especially in the volatile oil and gas sector – I recommend a balanced portfolio approach with individual stocks that are positioned to grow as oil and gas prices rise. These individual stocks will be the companies that will benefit the most in the long run and from sectors that are linked directly to the value chain. The Checklist Next, you’ll find a quick checklist of the things I look for in Commodity Supercycles – both overall and in each type of company that we discussed in Chapter 4 . Use this checklist to assess each investment you make in the energy space .
For all companies I want to add to the Commodity Supercycles portfolio, I need to see the following six overall attributes...
A. Manageable debt
B. Size and scale to withstand price volatility and grow in a capital-intensive environment.
C. Experienced management with a solid track record of driving growth and managing risk
D. Technical expertise
E. Solid balance sheet
F. Unique assets that provide a competitive advantage
When it comes to the individual company types, I also want to see
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