Own energy majors with massive trading arms
The guest argued that global energy majors with opaque but highly profitable trading arms, such as Shell and Glencore, offer a resilient way to play energy volatility.
The argument
These trading arms benefit directly from market volatility and high LNG/Brent prices, providing a natural hedge during broader market downturns. The guest highlighted Shell's massive LNG portfolio and aggressive share buyback target of 40% of its float by 2030.
The thesis, stress-tested
✓ What validates it
- ✓Shell executing its planned share buybacks
- ✓Elevated LNG and Brent crude prices persisting in quarterly reports
▸ Risks discussed
- ▸A sharp decline in global energy volatility
- ▸Opaque reporting masking underlying trading losses
Hear it yourself
"But, yeah, we're we're I'm most interested today, has been for my sort of parents and my son's portfolio has been a combination of, exchange operators. I absolutely love that theme. It's kind of a way to position almost like a sort of a talked index where you get a really beautiful business model that's just been out of favor for a decade because of strong US dollar and, obviously, US dollar hoovering up all the global capital. And so I think a lot of the sort of emerging market exchanges are gonna do very well for the next decade. And then my last piece was on sort of going after the trading houses. So this is, looking"
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