To paraphrase Warren Buffett, the time to buy is when everyone else is fearful.
Buffett isn’t keen on high risk oil and gas exploration and production companies, but at the moment, I believe that his methodology can be applied – with care – to some of them.
E&P tiddlers with sub-£100m market caps remain as risky as they always have been, but amongst larger E&P companies with market caps of around £1bn, there are some attractive buys to be had thanks to the recent fall in oil prices and stock markets.
In my latest article for the Motley Fool, I set out my criteria for choosing sound oil and gas buys in the current conditions – and provide a few examples of companies I am planning to look at in more detail over the weekend.
You can read the full article here.