Wednesday, July 13, 2016

Tweaking My Energy Holdings - XOM, CVX, PSX

XOM and CVX have been on a nice run, and are both way overpriced for their current earnings.  I'd like to keep my exposure to the energy sector, but want to de-risk a bit.

To do this, I've trimmed XOM and CVX, and have added PSX, Phillips 66.  PSX has a 3.3% yield is trading near fair value, and is upstream from oil a bit, with less direct exposure to the price of oil....

Below is a snapshot of PSX from FG:

This move reduces my overvaluation risk, and increases my margin of safety, while keeping me invested in energy at about the same total $.