Josh Young is the founder and chief investment officer of Bison Interests, an energy investment fund whose returns since October 2020 are ranked #1 in the HFM database. Young argues that, despite the phenomenal performance of the energy sector over the past 18 months, there are upstream producers that remain extremely undervalued relative to their current cash flows.
Young explains why he thinks many of the major oil companies are “burning capital” and why he prefers smaller producers that are not on the radar of many investors flooding into the space. He shares his views on ESG, divestment, and the idea of a “carbon bubble.”
This conversation is not investment advice.
Filmed on May 27, 2022.
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Today’s episode is sponsored by Jack Farley, the host of Forward Guidance. If you would like to get in touch with Jack to potentially become a sponsor of Forward Guidance, you can email him at jack@blockworks.co. Serious inquiries only, please.
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00:00 Introduction
00:10 Background
01:01 Supply Constraints
21:38 Is Energy Investing Just A Bet On The Price Of Oil?
33:04 Risks To The Energy Trade
56:14 Company-Specific Analysis
1:17:14 Is There A Carbon Bubble?
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Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.
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All the blockwork presenters are extremely knowledgeable in their own right and ask penetrating questions which garner insightful answers. Thank you to all the Blockwork team for making television worthy content for youtube.
Nice content! Few years back i was assistant to a wealthy pen artist and within the short period i worked with him i observed that he had quite a chunk of investment everywhere, stocks, crypto, dividend investing to name a few, so he had revenues coming in from all angles. And in a year his worth doubled. With this i learned that the rich stay rich by investing.
Just subscribed
Excellent interview! While it is not evident in the balance sheet and not in the scope of this interview, there is significant misallocation of capital in O&G (and many other industries) on massive public cloud spend.
A fraction of the incumbent O&G IT and OT systems are architected to run efficiently on public cloud. As they migrate (Rehost) these non-cloud system from the data center to public cloud, there is significant cost inflation to run these services. Further, most of these systems are 3rd party proprietary systems from thousands of independent companies. O&G will be eating these inflationary public cloud costs for many years to come (years before theses systems are modernized by the software supply chain).
Yeah those long only tech hedge funds where saying the same thing about tech a year and a half ago 🙂
Very interesting guest.
Interesting take. Hedge funds aren’t always right but they have a lot of data and resources to back their decisions and strategies.
Is there a carbon bubble?? When he started talking about beach front property and jets, I knew the answer was YES!
Genuine talk on oil and gas.
Jack, chill with the makeup 💄
https://youtu.be/1sAtGckBE6s !
Does anyone know what his holdings are besides JOY and BTE?
Josh; i would love to host you if and when you' visit India.
Energy stock will still go up 200% from here especially now the US has a deal with the EU who has banned most energy from Russia.
Wonder what his credentials are? Background, education??
Powell is serious about controlling inflation IMO. No QE before inflation is in control.
I don’t usually comment but thanks a lot Jack for this show, and Josh for providing very interesting insights
Josh is the best!
Wish you would have ask Josh for his top stock pick!!!
This guy Josh Young and Eric Nuttall are two of the best guys to follow if you invest in energy stocks. Smart dudes
1:19:01
everyone mentions the beachfront property as a reason why the climate isnt a pressing issue
but isnt it true that in the event of a natural disaster the owner of the beachfront property is federally insured?
🥱
Tesla is massively overvalued. The Everything Money channel breaks down why that is. Tesla has many hype gamblers that don't understand hardly anything about the market all piling in on Tesla because of youtubers like this guy. You all need to actually learn a process and stop trying to get rich quick. DON'T OVERPAY FOR GROWTH!!
Short Oil and LNG. Got it!
Where can we find their 13F holdings? I can't find for Bison. Perhaps they are too small to report?
Dude js so up in his thesis he forgets to be arrogant. Love that.
Yeah, that's what I keep saying, when those yelling about the supposed climate crisis show through their actions as in they are selling their beach front properties, they stop flying around in private jets, the scale down to just 1 or 2 houses that are reasonably sized … yeah, I'll model that behavior just like I'm modeling their current behavior. They say the seas with rise yet no seawalls are being built, they just keep saying we have to end fossil fuels so "hopefully" the seawalls aren't needed …. they don't even know if we'll ever be able to do enough to keep the seas from rising. So yeah, I'm as relax as they show me I should be.
Thanks for the video! At 53:10, he claims peace will bring oil prices down. I wonder how far down he thinks oil prices could go in the event of peace. Note that oil was in the 90's pre-invasion. It peaked to 130 because of the invasion, but fell back to 100 because, IMO, the economic sanctions and Russian supply need not have been priced in. This is also to say that the 115 dollar oil today is IMO purely due to inflation that already been created. We will see higher numbers as he says solely because of inflation.
Jack was clearly super prepared for this interview. Really enjoyed this conversation, interesting insights…
Interviewer needs to chill with the eye liner….
Animals I am the weather and I'll stop any animal even if it need to die. Electricity is gonna be free with cryptocurrency market mining. Is already set anyone trys to profit will be destroyed
Thanks!
Sadly this economic crisis means more inflation and more inflation affects the banking system. My condolences to anyone retiring this year. Please can any considerate person here help me best ideas on diversifying my 150k on prolific invest ments? I hope to get best relies out here. God bless!.
the dollar moves up all commodities every single thing the everything bubble falls breaks gone down all commodities down the price of oil gas right now is a manipulation of the market the prices will not come down but they will not go up the price increases due to stimulus checks is not inflation by definition
Shell and BP aren't exactly printing shareholder money.
I’ve got a big investment in coal which is also stupid cheap and throwing off massive free cash flow. PE ratio is currently between 1 and 2, all of the profits are FCF.
🤙🤙