A high P / E ratio generally signifies fast - growing earnings, a low P / E the opposite —
with most oil companies, if the oil price halves you can be assured earnings will also dump!
In our valuations,
most oil companies are priced less attractively than other businesses are, and we are comfortable continuing to own just the few we have.
Since
most oil companies make money based on similar variables such as the price of oil, it stands to reason that most oil company stock prices will frequently either go up together or go down together.
Since
most oil companies make money based on similar variables, such as the price of oil, most oil company stock prices tend to move up together or down together.