Good morning,
After review, we decided to sell Exxon out of the Focused Equity portfolio (and putting the proceeds in IVV for now). We believe the investment thesis is broken. Please look at the presentation for additional details.
Initial investment thesis is broken:
Quality of returns put at risk by capital allocation decisions
No longer the industry leader
Defensive characteristics now uncertain
More broadly we see the traditional oil industry more at risks now vs. prior cycles due to a changing landscape:
Increase of electric vehicle penetration
Renewable energy becoming a better competitor to natural gas
States mandating a % of energy coming from renewable sources
[tag XOM]
Julie S. Praline
Director, Equity Analyst
Direct: 617.226.0025
Fax: 617.523.8118
Crestwood Advisors
One Liberty Square
Suite 500
Boston, MA 02109