Is Exxon Mobil the Greatest Company in History? (NYSE:XOM)

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Could it be possible that Exxon Mobil Corporation (NYSE:XOM) is the greatest company in the history of the world?  There is one analyst (and probably more) that thinks so.  Joe Magyer at the MotleyFool calls Exxon the “biggest, strongest, most efficient, most evil” and follows that up with the company has probably been called just about everything.  Here’s the reasoning Magyer provides to selecting Exxon as the greatest company.

1. An owner-operator culture
John Rockefeller didn't run an infamously efficient organization just for kicks. As the largest shareholder, he had a vested interest in the success of Standard Oil. When managers and employees are shareholders alongside you, they share your desire to manage the business for the long term.

2. Enduring demand
Demand for oil is strikingly consistent. For most companies, steady demand equates to steady cash generation. But for Exxon, the consistency of demand for oil is just as important as the duration of that demand. Constant doubts about the staying power of oil have helped to keep Exxon's shares consistently undervalued, allowing management and dividend reinvestors to steadily gobble up shares at attractive prices while the company continues to outpace expectations.

3. No one loves a sinner
Some folks feel a bit queasy about investing in so-called sin stocks: tobacco companies, brewers, Big Oil, etc. Just like the longstanding (and false) belief that oil demand will dry up in the not-so-distant future, many investors' aversion to investing in sin stocks just leaves the stocks that much cheaper for the rest of us. Their loss. Our gain. As an investor, you'd rather laugh with the sinners than cry with the saints. Again, consider the primo status of oil and tobacco on the above list.

4. Smokin' returns
And here you thought Exxon's secret sauce was a blend of industrialization and cold-blooded ruthlessness. OK, sure, maybe there's a pinch of both in there, but plenty more was involved in the company's success.

Read all of Magyer’s Article here.


 

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