My Best Oil Stock for 2021
I think ExxonMobil (NYSE: XOM) is a great oil company, but I sold it in 2020. I replaced it with a new energy company that is making a long-term shift, along with the broader energy sector, that Exxon hasn't yet started. Here's a look at the company I chose, and why I think it's my best oil stock for 2021.
There's no way around it, 2020 was a disaster for energy stocks like ExxonMobil, which was down 40% for the year. That said, it was a big win for Tesla, which was up 740%. I don't directly own Tesla, but one of the mutual funds I do own, Baron Partners Fund, does. It's a huge position in the fund's portfolio, making up 44% of assets at the end of 2020. That was just too much exposure to Tesla for my taste, so I sold roughly half of my position in Baron Partners Fund last year, booking a profit. To offset some of the capital gains taxes I knew I'd be facing, I captured my losses in Exxon.
Image source: Getty Images.
Source Fool.com
