Ever hear Warren Buffet’s advice “Rule #1, never lose money. Rule #2, never lose money. ” ? That “advice” annoys me because not only is it obvious it isn’t helpful and is snarky. I prefer “I would rather fall through the basement than the roof.” Basically, to focus on the downside, the upside takes care of itself. The stock market isn’t rational so buy when prices are so low the downside is minimal. You won’t even break your legs if you fall through the basement.
A 12% (23 billion) drop is a MAJOR over reaction IMO to BP’s oil rig accident. Another example of front page news making a great buying opportunity. From what I have researched, worst case scenario the cost will be around 3 billion. BP’s insurance will cover around 1.5 billion of the cost.
FPE is 6.53. PEG is 1.6. Market cap 165 Billion. Price/Book 1.58. 4 star CAPS rating.
With the yield being at 6.39%, this is like being on the other side of an auto-loan. Even if the stock goes nowhere, it will still pay the average S&P 500 return via dividends. Add DRIP (Dividend Reinvestment Plans) to the equation to a tax free Roth IRA and this pick will DESTROY the averages.
BP has been on my radar since they bought Devon’s (DVN) international assets in early March. I need more international exposure so adding the UK to the mix is perfect. Oil and natural gas is a great lifetime investment and I’m kicking off my oil/nat gas basket with BP!
Monty
Greedy When Fearful 
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