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"The Greenpeace buying Exxon for pennies" scenario is deeply unrealistic for the moment. It's like finding $295.000.000.000 on the street. Exxon doesn't change
by mxschumacher 7y ago
"The Greenpeace buying Exxon for pennies" scenario is deeply unrealistic for the moment. It's like finding $295.000.000.000 on the street.
Exxon doesn't change if it's share price declines, the lower the price goes, the more attractive the opportunity from a risk-reward perspective.
With pension funds and hedge funds hungry for yields, somebody will always buy.
To go with your police scenario: In the oil industry, the police officer protects you while picking up the $100 bill and takes a 25% cut. That's the story of many oil-rich nations.
- NeedMoreTea 7y agoOf course it is - yet governments and investments are showing early signs of divestment, including by pension schemes. If regulations to require carbon impact become a consideration in investment, or market listing - there's early signs some are thinking in those directions - then those pension schemes will start voting inconveniently or divest more significantly. If one of the top 5 blocs bakes climate into their approach trade, things could change fast. Exxon have the mass that it will take a great deal to actually impact, but large industries have been abolished or turned into niche industry before. No reason to believe it won't happen again.