A Quick Update on BP

NYSE:BP has been weathering the industry downturn nicely. I am very pleased with the stocks lack of reaction (-2%) to the bad news, despite a 30% decline in replacement cost profit. Exxon and Chevron both lopped 10% off their stock prices when they reported similar results. 

While no investor should be happy with a 30% decline in profits, this confirms the original thesis: All the Bad News is Priced In. Parking some cash in BP has worked out well so far, and the firm is re-positioning for growth over the long-term.

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Author: secondhandstocks

The genesis for this blog stems from a Marine buddy and I came back from Afghanistan with more money than knowledge, and heedlessly tossed our hats into the stock market ring. A few months later, I remember discovering the classic book The Intelligent Investor by Graham and Dodd, and ravenously devouring my first introduction to value investing. That framework - with some generous additions by Seth Klarman, and Joel Greenblatt among others - guides my investment philosophy. I spent five years working in the intelligence field, both in the Marine Corps and then for a government agency after that. I speak Arabic and Pashto, have programming and analysis experience, and enjoy investing in technology companies as a hobby. I also spent a year on Wall Street working on a #1 Ranked Institutional Investor team, before deciding that that the Sell-Side was not for me.

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