It occurred to me that since Aramco is essentially a portion of the SA govt, then when you purchase a share of stock in Aramco:
- You are essentially purchasing a share of stock in Saudi Arabia
- The country is in heavy negative cash flow for a while - and apparently for some time to come
- Not sure if it is a good thing or not, but their solution to a cash flow problem appears to have been to round up anyone with significant money and influence and "jail them" and their families in a hotel.
- SA is also in the middle of several wars and appears to be itching to get into another one.
Not sure that this is really a great investment. Certainly outside of my risk / reward level.
Many major governments are operating a budget deficit.
They've been running a very large surplus for many years which I believe now means cash in the bank. Obviously it relies heavily on the price of oil being above the breakeven point. Which seems to be around $74 for them.
Not just SA in the middle of many wars, but it does seem very involved in a lot of conflict at the moment.
