Summary

One of the best ways to get an understanding of a company is by learning its industry.

In this example, we see how companies in the Permian are gearing up for higher production by summer 2019 as more pipelines come online.

Some journals are cheap, some are expensive, take the free trials, but be diligent about canceling to conserve expenses.

Diamondback Energy is covered in this natural gas journal. I apply the information to one of our holdings, Occidental Petroleum.

Best advice I ever got

Jim Rogers: Read everything

Jim Rogers: Read everything

Best advice: Gates on Gates

Age: 66 - Investor and commodities guru: The best advice I ever got was on an airplane. It was in my early days on Wall Street. I was flying to Chicago, and I sat next to an older guy. Anyway, I remember him as being an old guy, which means he may have been 40. He told me to read everything. If you get interested in a company and you read the annual report, he said, you will have done more than 98% of the people on Wall Street. And if you read the footnotes in the annual report you will have done more than 100% of the people on Wall Street. I realized right away that if I just literally read a company's annual report and the notes -- or better yet, two or three years of reports -- that I would know much more than others. Professional investors used to sort of be dazzled. Everyone seemed to think I was smart. I later realized that I had to do more than just that. I learned that I had to read the annual reports of those I am investing in and their competitors' annual reports, the trade journals, and everything that I could get my hands on. But I realized that most people don't bother even doing the basic homework. And if I did even more, I'd be so far ahead that I'd probably be able to find successful investments.--Interview by Brian O'Keefe

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