What are you buying today?

[bmichaud]

Unless Buffett was talking about a Tedd/Todd VOD purchase, I can't imagine he was buying VOD.

[Palantir]

I think the resident bears will finally get their correction.

[jm25]

Is anyone buying Gazprom or Lukoil? Is the sell off warranted? Does anyone see these events impacting these two large players long-term?

[CorpRaider]

Unless Buffett was talking about a Tedd/Todd VOD purchase, I can't imagine he was buying VOD.

It would be out of the box unless you view it as arbitrage, in which he has been known to partake.  BP would be a guess if he didn't already hold the xom...

[vinod1]

Is anyone buying Gazprom or Lukoil? Is the sell off warranted? Does anyone see these events impacting these two large players long-term?

Bought Lukoil. But not sure if I am investing or making a donation to Putin.

Vinod

[bmichaud]

But not sure if I am investing or making a donation to Putin.

Hahahahahah - to use Kravens favorite phrase, I LOLed at this one.

[alertmeipp]

Is anyone buying Gazprom or Lukoil? Is the sell off warranted? Does anyone see these events impacting these two large players long-term?

Bought Lukoil. But not sure if I am investing or making a donation to Putin.

Vinod

You don't think Putin will harm this further one way or another? I was tempted as well.

[TwoCitiesCapital]

Is anyone buying Gazprom or Lukoil? Is the sell off warranted? Does anyone see these events impacting these two large players long-term?

I've already had a small position in Gazprom from the last time it was these levels. Am considering adding to it or buying some Lukoil. Also beginning to research CEFs in this space to see if any can be had at sizable discounts.

Bought more SAN today. Second largest position behind Altius at this point.

[vinod1]

You don't think Putin will harm this further one way or another? I was tempted as well.

The way I see it there are two main risks

(1) Russian government confiscating Lukoil assets

(2) Russian government imposing restrictions on foreign holders of Russian businesses

Given that we have an owner operator who has the benefit of learning from Yukos, I would think risk #1 might be somewhat low. However, if there are financial sanctions and asset freezes imposed by west due to Ukraine situation, #2 may be a significant risk.

I do not think we can really assess these risks and we just need to manage it with position sizing.

Anyway you measure it, it is trading at about 4x average earnings of the last three years. These are all in and what could be considered pretty normal level of earnings - if oil prices hold. I think the above risks are more than priced in.

Vinod

[alertmeipp]

You don't think Putin will harm this further one way or another? I was tempted as well.

The way I see it there are two main risks

(1) Russian government confiscating Lukoil assets

(2) Russian government imposing restrictions on foreign holders of Russian businesses

Given that we have an owner operator who has the benefit of learning from Yukos, I would think risk #1 might be somewhat low. However, if there are financial sanctions and asset freezes imposed by west due to Ukraine situation, #2 may be a significant risk.

I do not think we can really assess these risks and we just need to manage it with position sizing.

Anyway you measure it, it is trading at about 4x average earnings of the last three years. These are all in and what could be considered pretty normal level of earnings - if oil prices hold. I think the above risks are more than priced in.

Vinod

I tend to agree, I actually put in a bid today but was too low.