Today I'm going to tell you about an energy company that, within the next month, I'll be buying into with $4,000 of my own money. I'm so confident that my pick will outperform the market that if I sell any shares within the next three years, I'll donate $100 to charity.
Before I get to the actual pick, I want to take you through my thought process that brought me to my decision.
Should I buy Big Oil?
Right now, the largest company in America is ExxonMobil
But for some reason -- call it my fear that Peak Oil enthusiasts could someday be right -- this company just doesn't sit right with me. I'm not able or willing to keep track of all the different oil fields Exxon is exploring, or how they're all producing. And in investing, if you aren't going to have fun following a company, there are probably better options out there for you.
What about natural gas?
Over the past few years, natural gas has been all the rage in the energy field. With citizens and politicians alike wanting to wean themselves off of foreign oil, and vast, untapped supplies of natural gas available in North America, this fuel might be powering our homes and businesses 100 years from now.
One of my favorite plays in this field is Provident Energy
For that very same reason -- even though I own a small portion of it in my "Crazy Portfolio" -- I won't be devoting the big bucks toward Westport Innovations
Any other unusual plays?
Two other companies have piqued my interest. EnerNOC
The other play I find intriguing is Solazyme
Think of the Gold Rush
So when I finally had to make a decision, I thought back to the Gold Rush. Thousands moved out to California to make their fortune, but precious few found it in gold. Some clever busineses, however, sold things that gold prospectors needed -- picks, axes, shovels, and blue jeans-- and made out like bandits.
My pick today, National Oilwell Varco
This is the ninth article in a series that I'm writing about my retirement portfolio, which I'm dubbing "The Cheesehead Portfolio" in honor of my home state of Wisconsin. If you'd like to see my first eight selections for the portfolio, check them out below.
But if you want a second opinion on stocks in the energy field, The Motley Fool has recommended many other strong companies. If you'd like access to a report on "3 Stocks For $100 Oil," it's yours -- absolutely free.
- My Money Is On This Hot Stock
- My Money Is On This International Dividend Stock
- My Money Is On This Company's Management
- My Money Is On This Dividend Stock
- This Dividend Stock Will Help You Retire
- My Money Is On This Hot Internet Company
- My Money Is On This Dividend Stock
- My Money Is On This Energy Stock
Fool contributor Brian Stoffel owns shares of National Oilwell Varco. By Aug. 20, he will have filled out his position in National Oilwell with at least $4,000. The Motley Fool owns shares of EnerNOC and Solazyme. Motley Fool newsletter services have recommended buying shares of National Oilwell Varco, Westport Innovations, and EnerNOC. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Hate Checking Your Portfolio? Try These 2 High-Yield Stocks
If you agree with the notion that boring is good, then check out this energy company and this petroleum pipeline operator.
What Is a Family Limited Partnership?
Want a way to protect your family's wealth from the IRS? Enter the FLP.
Will This Tiny Biotech Be Celgene's Next Takeover Target?
Depending on data later this year, Celgene may want to buy this collaboration partner.