Real Money Columnist Jim Collins leverages his climate skepticism to log big profits.
Some people are climate change skeptics, and others are climate change skeptics with extreme prejudice.
It’s probably safe to count Real Money Columnist Jim Collins among the later.
“In my world, humans are killing each other, not the planet,” Collins wrote recently on Real Money. “And the insane ‘green’ strategies of its leaders, especially in Europe, serve to enrich the lunatic who is doing the killing,” he added.
Collins argues that investing in big tech now requires that investors believe Putin is ‘just kidding,’ in Ukraine, that Fed Chief Jerome Powell and colleagues are ‘all over’ the inflation problem and “Not only is the 4.5 billion year-old Earth suddenly ‘melting,’ but gullible voters will keep electing politicians who push this unscientific nonsense.”
All of which points to his creation at the beginning of the year of his HOAX portfolio of 10 hydrocarbon plays that has risen 29.8% since its inception date. Ever the gentleman, Collins uses Cathhie Wood’s Ark Portfolio as a benchmark, and says it’s fallend 33.7% in the same period.
“It’s about avoiding Putin’s rubles and applying common sense,” Collins wrote. “The companies in HOAX have never killed anyone. To create an apocalyptic mythology to try and guilt people into avoiding investing in them is the height of stupidity.”
The 10 stocks in Collins’ HOAX portfolio:
Exxon Mobil (XOM) – Get Exxon Mobil Corporation Report
Antero Midstream (AM) – Get Antero Midstream Corp. Report
Arch Resources (ARCH) – Get Arch Resources, Inc. Class A Report
Peabody Energy (BTU) – Get Peabody Energy Corporation Report
Suburban Propane Partners (SPH) – Get Suburban Propane Partners, L.P. Report
Cheniere Energy (LNG) – Get Cheniere Energy, Inc. Report
Flex LNG (FLNG) – Get FLEX LNG Ltd Report
Chevron (CVX) – Get Chevron Corporation Report
Petrobras (PBR) – Get Petróleo Brasileiro SA Report
Tsakos Energy Navigation Series F (TNP-F) – Get Tsakos Energy Navigation Limited Cum Red Perp Pfd Registered Series F Report
According to Collins, the coal names have significantly outperformed, and he probably wouldn’t buy Arch and Peabody at current levels.
“But I am actively reinvesting clients’ divided payments into the other eight names,” he said. “Antero Midstream is the safest of that cohort, and its 8.9% yield is not only incredibly attractive, but also incredibly safe based on the cash flows that AM generates.”
“AM’s revenues come, for the most part, from transporting natural gas produced by its corporate cousin Antero Resources,” he added. “Where is the risk? There is none.”
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