>>23365117>Even the oilfield services stocks are holding onto their bottoms.I don't know the general attitude of people here regarding their planned holding period for the equities they own. However, if it's the Buffett-like answer of "forever," they should be very careful of the oilfield services companies.
The oilfield services companies appear to be excellent equities to hold during a crude oil/commodities bull market. However, they are absolutely terrible companies to hold "forever" across multiple business cycles. Look at the price history of Schlumberger and Halliburton over 30, 40 years and compute the total return. It's pathetic.
Meanwhile, the international oil companies such as Exxon, Chevron, BP, Royal Dutch Shell do quite well over multiple business cycles. At least for the American companies (I have not look too deeply at the non-American companies), they also offer excellent protection against inflation in secular high-inflation periods.
tldr; Oilfield services companies should only be held for a trade, which may last up to around seven years. Be sure to sell on the way up to lock in gains and prepare to dump the entire position before the business cycle ends.
