Quote:
Originally Posted by Goodnight
I was speaking to the preceding years, Exxon made $114B in 2022, a 77% increase from 2021.
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they spend roughly 25 billion a quarter in exploration costs so those profits are what funds the next quarters .
that has been exxon’s problem over the years ..
the up coming costs have eaten up the previous profits leaving investors high and dry .
which is why unless you timed a short term trade well being an exxon owner sucked.
it’s like years ago my wife and i were in a little general store up state .
the store had all these jars of honey on the counter for sale .
the owner said to us we should take some honey , it was a great deal ..she was selling it for 2.50 a jar .she said when she gets her new stock it will cost her 3 dollars a jar .
i said to her i will take every jar you have ..she said really ?
i said yeah , and then i will sell it back to you for 2.75 .
i will make a quarter , you will save a quarter and we both win .
she couldn’t figure out what happened here …she knows she made a profit yet if she does this deal she is a quarter poorer then before she made the sale to me
she just couldn’t figure out what would cause this to happen ..
finally i explained to her that unless she was going out of business or never buying more honey , it s a 3 step process not 2 step .
you buy a jar , you sell a jar and you rebuy the jar and start over and what is left is the actual profit you get to keep .
in this case her up coming costs ate up the profits she made and in fact left her behind .
exxon is that lady and why the stock has sucked for long term investors for decades
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