By Younas Chaudhary
The war in Ukraine, concerns of oil supply shortage, fighting over oil prices, and global inflation impacted businesses in 2022. Yet, it was one of the best years for me and here is what helped:
My team and their dedication.
I am thankful to all our staff irrespective of their positions working in the office and at various oilfields for all their hard work and dedication. Their exemplary performance helped us grow further in 2022. I am deeply grateful to our team and I look forward to continuing to work with them in the coming years. Your consistent efforts, dedication, support and hard work has been priceless. It is my honor to work with you all and all of you have left a grateful mark on my heart.
A keen sense of optimism.
The cyclical oil business leads us from feast to famine quickly. Pre-planning, pre-empting, watching costs, and realistic forecasting is the key to survival in the energy business.
In 2021, our team acquired an oil company and several oil and gas properties while energy prices were low. Our team’s hard work, optimism, consistency, and cost control, together with drilling successful horizontal wells, helped us increase cash flow from our core oil and gas operations in 2022.
Preemptive strikes and cost effectiveness
I’ve been blessed with good foresight, and I projected 2022 would be a good year for oil prices. Purchasing oil wells and an oil company in 2021 at low prices when the market was suffering because of falling oil prices during the pandemic helped us lay the foundation for a great 2022. I’ve always believed in making timely, prudent, long-term and cost-effective financial decisions.
Investments based on supply and demand
We invested in oil and gas wells and real estate after thoroughly assessing realistic market supply and demand. Many businesses that saw a rise in their fortunes during the pandemic invested heavily thinking that they would retain the same growth in the post-pandemic period. This over-investment caused failures as consumer behavior changed in the post-pandemic period.
For example, the used car seller Carvana borrowed heavily and invested too much thinking that their increase in business during the pandemic would sustain further growth. Right now, it’s a different story as consumer appetite for purchasing used cars has seen a slump.
Always remember that overzealous investments counting too much on temporary consumer appetite is short-term thinking and dangerous.
Diversification in our real estate portfolio
During COVID-19, some of our commercial properties were impacted badly. However, we had strategically invested in areas where consumers most often had to visit the facility to get services. Examples include medical buildings and doctor’s offices, allowing us to weather major losses in the post-COVID era.
I was not enticed by Crypto
I stayed strong investing in blue chip stocks for the long haul and the glitter of crypto never got my attention. When the market slumps, hold on and be steady.
Investing in a healthy, peaceful lifestyle
In 2022, I invested in a healthy and peaceful lifestyle. I was fortunate enough to travel to several national parks in America and realized how beautiful America is and I am fortunate to call it home.
Giving generously made me more human
My foundation, the YBC Foundation, and myself substantially increased our giving in 2022. We helped numerous individuals, select charities, and other organizations who truly help the needy instead of pocketing and wasting money on their own inner circles. Giving gave me positive energy and I shared my wealth with others – that’s the best thing that happened to me in 2022 year.
Happy Holidays. Stay Blessed!
The views, thoughts, and opinions expressed in this article are my own and do not represent the opinions of any entity with which I have been, am now, or will be affiliated. Further, I make no warranty regarding the accuracy or effectiveness of my recommendations, and readers are advised to consult other advisors as well as their own judgments in making business decisions.