Apr 17th, 2008
Sick of gas costing an arm and a leg? Dont get mad — get even
Yesterday I had to stop and perform the painful ritual of getting gas. There’s nothing quite like watching numbers spin by…almost ten times faster than they did when I first started driving. As my car slowly sucked the money out of my wallet, I looked over at woman filling up her escalade with premium. I watched her meter climb from $50 to $80 to $100 and then I stopped watching because it was too painful. I had flashes in my head of old cartoons where character A is siphoning gas from character B is some comical way. This set off a chain reaction of thoughts traversing different paths that all led to the same thing: if you can’t beat them, join them.
Let’s face it, gas prices are going to keep moving higher until additional refinery capacity is brought on stream, and it’s doubtful that’s going to happen any time soon because there’s little incentive to do so. Why would anyone spend the money to build a new refinery when they know the end-result would be to lower their profits on every gallon of gas they produce, both on the existing volume, and any produced from the new refinery; it’s simply a losing proposition.
Most people, who drive regularly, probably fill up two to three times per week. This of course depends on the vehicle you drive, how you drive and whether you do mostly highway or city driving or a combination of both. According to the annual study, Gasoline and the American People, in 2005, American’s drove 12,375 miles, 20 percent more than 1990, consuming an average of 703 gallons of gas annually. Given the increase in the price of gas over the past five years, I wonder how much more we’ve spent to keep our cars on the road. Its huge.
Now, what if you took $3,438 in May 2002 and bought stock in Exxon Mobil (XOM), America’s largest oil company. Today, you would have over doubled your money, more than covering the added cost of fuel.
This is a clear example of what we refer to as everyday investing. Instead of moaning about the cost of a product or service that you repeatedly use, go out and purchase the stock of the company that makes it – if it’s public – and get the best revenge, in your pocketbook.
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- 3 Comments
- Investing
Hmmm, I’d never thought of getting back that way. Good idea
Though hopefully the stock market eventually picks back up eventually…
I’ve thought of that sometimes. Still, I don’t think I know about investing to take that kind of chance. Not yet.
With the earnings that these oil companies are reporting its not a bad Idea to buy some stock any just about any of them. We are struggling and they are still making billions..