As the first offering from the comprehensive Fisher Investments On investing series from Fisher Investments Press, editors Aaron Azelton and Andrew Teufel demonstrate how to integrate the energy sector into a more comprehensive portfolio strategy. This reliable resource draws on the same insight and research Fisher Investments uses in managing assests for high-net-worth individuals and institutions globally. The book benefits both new and seasoned investors, covering everything from energy sector basics to specific industry insights to practical investing tactics including common pitfalls to avoid. Azelton and Teufel demonstrate how professional analysts uncover performance and risk-management opportunities--and show the readers how they can do it too. Filled with detailed graphs and tables, unique insight and practical advice, Fisher Investments on Energy will provide readers with a solid foundation in this sector and show them how to profit from it.
Aaron M. Azelton (San Francisco, California) is an equity research analyst covering the Energy sector at Fisher Investments. He graduated from the University of California at Berkeley with a B.A. in Economics. He has been with Fisher Investments since 2002. Aaron grew up in Santa Monica, California, and is currently living in San Francisco.
Andrew S. Teufel (San Francisco, California) has been a member of Fisher Investments research staff since 1995 and is currently Co-President and Director of Research. Prior to joining the firm, he worked at Bear Stearns as a corporate finance analyst. He is a graduate of the University of California at Berkeley, and has lectured at the Haas School of Business on topics in investment management. Andrew has conducted hundreds of investment seminars and educational workshops throughout the US and the United Kingdom. He also serves as Editor-in-Chief of MarketMinder.com.
Part 1. Getting Started in Energy.
Chapter 1. Energy Basics.
Oil & Gas Industry.
Energy Equipment & Services Industry.
Chapter 2. What Makes Energy Burn: Key Drivers of the Energy Sector.
Oil Demand Drivers.
Oil Supply Drivers.
Natural Gas Demand Drivers.
Natural Gas Supply Drivers.
Part 2. Next Steps: Energy Details.
Chapter 3. Energy Sector Breakdown.
Global Industry Classification Standard (GICS).
Global Energy Benchmarks.
Oil, Gas, & Consumable Fuels Industry.
Energy Equipment & Services Industry.
Chapter 4. Why We'll Never Run Dry.
The World Will Never Run Out of Oil.
The Tipping Point?
Peak Oil and You.
Peak Oil Reading.
Chapter 5. Staying Current: Tracking Industry Fundamentals.
Crude Oil Market Fundamentals.
Natural Gas Market Fundamentals.
Refining Margin Fundamentals.
Energy Equipment & Services Fundamentals.
Chapter 6. Alternative Energy.
What Is Alternative Energy?
Alternative Energy Drivers.
Alternative Energy Investment Universe.
Part 3. Thinking Like a Portfolio Manager.
Chapter 7. The Top-Down Method.
Investing Is a Science.
Einstein's Brain and the Stock Market.
The Top-Down Method.
Managing Against an Energy Benchmark.
Chapter 8. Security Analysis.
Make Your Selection.
A Five-Step Process.
Important Questions to Ask.
Chapter 9. Energize Your Portfolio.
Strategy 1: Commoditize.
Strategy 2: Playing Sub-Industries.
Strategy 3: Company Bets.
More Sub-Industry Tips.
Appendix: Energy Sector Resources.
About the Authors.
The Fisher Investments on series is designed to provide individual investors, aspiring investment professionals, and students the tools necessary to understand and analyze investment opportunities--primarily for investing in global stocks. Each guide is an easily accessible primer to economic sectors, regions, or other components of the global stock market. While this guide specifically focuses on Energy, the basic investment methodology is applicable for analyzing any global sector, regardless of the current macroeconomic environment.
Following a top-down approach to investing, Fisher Investments on Energy can help you make more informed decisions within the Energy sector. It skillfully addresses how to approach your portfolio's Energy allocation, how to determine which Energy sub-industries have the potential to perform well, and how individual stocks can benefit in various environments. The global Energy sector is complex, covering multiple sub-industries and countries--each with unique characteristics. Using the framework found here, you can discover how to identify these differences, spot opportunities, and avoid major pitfalls.
Divided into three comprehensive parts--Getting Started, Energy Details, and Thinking Like a Portfolio Manager--Fisher Investments on Energy:
* Discusses Energy's drivers, including all the supply and demand components of its main drivers--oil and natural gas prices
* Takes you through the seven sub-industries within the global Energy sector and reveals how they operate
* Addresses the challenges of today's Energy sector, including peak oil and alternative energy
* Delves into top-down investment methodology as well as individual security analysis
* Outlines a five-step process to help differentiate firms in this field--designed to help you identify ones with the greatest probability of outperforming
* Provides investment strategies for a variety of market environments
Filled with in-depth insights and expert advice, Fisher Investments on Energy provides a framework for understanding this sector and its industries, to help you make better investment decisions--now and in the future. With this book as your guide, you'll gain a global perspective of the Energy sector in your quest to achieve consistent success in it.