RE:Thoughts from my cabin. Bring on the fud Meanwhile, I hopped on my brand new cub cadet 54" lawn tractor today and banged out a couple acres in no time. Thank you bir dividend. No, I did not buy bir for the divy. No I don't think it provides any sort of "safety" compared to say my ATH which pays no divy. I bought it because jeff was adamant about NOT hedging gas prices forward, his view, which I share, is that hedging is a no win strategy. When prices rise investors scream for your head over all the hedge losses reported every quarter. When prices are dropping, especially if the collapse, mgmt gets NO credit for the unrealized gains in the hedge book. Instead, the masses sell ALL there energy stocks. Hedged or not. And they probably start with the hedged companies because they can at least get a bid for the stock! So why bother unless there is a big transaction you need to protect from panicked debt holders pulling the plug like they all did during Covid. Otherwise his view is big investors can buy their own hedges if they want to hedge, and little guys can just sell. Which is what they do anyway.
so back to that divy. I'll take the cash thanks, as a windfall, or a return of my risk capital. I'll buy a bank stock, or some s&p500 index etf, or maybe a gold stock, and yeah, sometimes daddy gets a new toy! But I never count on that divy and only rarely will I reinvest it in more of the same risk.
good luck to all, I'll be cutting some grass tomorrow.