⭐ Update on Energy Companies
⭐ Education on percentages /investing
Energy companies such as Exxon Mobil (symbol XOM) and Chevron (symbol CVX) are already up 25% and 12% respectively so far this year. You most likely would not see these stocks in your portfolio as I prefer to buy more diversified, sector ETFs.
In analyzing the chart for VDE (Vanguard Energy ETF) whose main components are XOM and CVX among others, I realize that although VDE has done well so far this year (up 17.4%), the ETF is just about to break even from its steep selloff from its high in 2019, a few months before the 2021 COVID lockdown started.
I am still in the process of deciding whether it is time to sell some of these holdings which were purchased in the midst of the COVID crisis (remember when short-term oil prices went negative?) at a decent profit or to let the profits run? More to come on that!
In terms of percentages, it is interesting to note that the percentage increase needed to break-even grows exponentially with percentage loss (See Chart).
| Amount of loss | Break-even Gain |
| 10 | 11.11% |
| 15 | 17.65% |
| 20 | 25.00% |
| 25 | 33.33% |
| 30 | 42.86% |
| 35 | 53.85% |
| 40 | 66.67% |
| 45 | 81.82% |
| 50 | 100.00% |
| 55 | 122.22% |
| 60 | 150.00% |
| 65 | 185.71% |
| 70 | 233.33% |
| 75 | 300.00% |
| 80 | 400.00% |
| 85 | 566.67% |
| 90 | 900.00% |
| 95 | 1400.00% |
As you can see, it makes sense to avoid large losses in order to recover one’s principal quickly.
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