• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Energy

Yes, You Should Listen to Carl Icahn

Whether an activist or advocate, Icahn is very good at what he does.
By SHAM GAD Sep 29, 2015 | 12:00 PM EDT
Stocks quotes in this article: LNG, FCX, CHK, RIG

Carl Icahn is widely known today as an "activist" or "corporate raider." While those terms are not at all wrong in describing Icahn's investing approach, I believe there is a better to describe what he is doing: investor advocate.

There's no denying that Icahn has made some big money on bets that paid off in the short term. However, his long-term record speaks for itself. Unlike most active investors who fizzle out in a decade or so, Icahn has been successful over 30 years and has amassed one of the best investment records in the business.

Investors who want to educate themselves on what is going on today from a perspective of a professional who is on the front lines can now do so thanks to Icahn's new website, www.carlicahn.com.

Icahn recently released a position paper and a new video called "Danger Ahead." Such a title doesn't bode well for the market today or perhaps next week, but investors should be aware of the opinions of others and use those viewpoints to formulate rational expectations and make smart decisions.

Despite a stable U.S. economy, there are areas of froth. Low interest rates, while warranted to pull the economy out of a recession, have served as a slow drip drug that has made equities a superior asset class. Equities tend to favor the wealthy and upper middle class households who can invest in them. The majority of the population has not seen an increase in wealth at even the tiniest fraction of that created by the stock market, according to Icahn. In conclusion, Icahn says that things could get worse very soon.

But Icahn is not exiting the market. This morning, he revealed he had increased his stake in gas exporter Cheniere Energy (LNG). Icahn also recently took a position in commodity company Freeport-McMoRan (FCX). Meanwhile, he still holds large stakes in Chesapeake Energy (CHK) and Transocean (RIG), and is sitting on huge unrealized losses in those positions.

Icahn has substantial resources and can be a very, very patient investor. I would not follow him into any of these names unless you have the same stamina. Even so, Icahn is very good at what he does -- but he is not perfect.

The days of calm waters are likely over for now. You can't sail forever and not expect to hit some choppy seas or extreme headwinds. They will ultimately pass, but how you navigate now will determine the condition your ship is in once it exits the storm.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, Gad was long CHK and LNG

TAGS: Investing | U.S. Equity | Energy

More from Energy

Don't Waste Energy Divining Energy's Future; Ride With LNG Shippers Instead

Jim Collins
Jan 21, 2021 10:30 AM EST

A hot market for liquefied natural gas makes companies that transport the fuel sensible plays at a time when oil is demonized.

Renewable Energy Group Is Set to Drive to New Highs

Bruce Kamich
Jan 21, 2021 10:08 AM EST

REGI is the nation's largest biodiesel maker.

At What Price Is Ballard Power Systems a Buy?

Bruce Kamich
Jan 15, 2021 3:09 PM EST

Let's check out the latest charts of BLDP.

Time to Nail Down Some Profits on Halliburton

Bruce Kamich
Jan 14, 2021 10:47 AM EST

Our latest technical analysis and trading strategy for the oil services stock.

A Rising Tide Is Going to Lift LNG Shippers in a Very Cold Winter

Jim Collins
Jan 14, 2021 10:30 AM EST

Also, my take on Jack Dorsey and Twitter, along with Facebook.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 09:35 AM EST CHRIS VERSACE

    Another Big Winner for Stocks Under $10

    We're ringing the register Tuesday morning.
  • 08:05 AM EST GARY BERMAN

    Tuesday Morning Fibocall for 1/26/2021

    SPX (Long-Term View) The 1/21/21 NEW high @ 3861...
  • 09:52 AM EST GARY BERMAN

    INDU/DIA 20 DMA

    Fibocall: The DIA has the 20 DMA @ 307.81 and w...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login