Accounting Observer > Public Blog - Ben Stein: What IS An Oil Company?

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Ben Stein: What IS An Oil Company?

Location: Blogs AAO Weblog (Public)
Posted by: Jack Ciesielski	2/27/2006 5:39 AM
Probably the most entertaining writer/economist/lawyer/actor I've ever encountered is Ben Stein. (And of course, the only writer/economist/lawyer/actor I've ever encountered.) About five years ago, I had the chance to see him in person at a conference sponsored by the CFA Institute (the Association for Investment Management & Research at the time) in Los Angeles. He's even funnier and sharper-witted in person than on paper, and he held the audience in the palm of his hand while he amused them with his investing tales. Unfortunately, they walked out of the room with him - and I was the next speaker, with my not-nearly-as-entertaining missives about pension accounting and stock option accounting. Ben Stein is a tough act to follow, regardless. And I always enjoy his columns in the New York Times. I particularly enjoyed his piece yesterday about ExxonMobil; I only wish he'd written it when the oil-bashing was at its peak around the time that XOM had released their now-fabled earnings for the fourth quarter. Ben's point: who are critics angry with, when they're angry at oil companies for their profits? Are their executives vampirizing their employees, sucking away fruit of their labor for themselves? No. Should the ExxonMobil's critics be angry with the stockholder-owners? That would be self-hatred, because about "41 percent of the stock is owned by retirement funds, private, public (federal, state and local) and individual retirement accounts. In other words, by us." Should critics be angry at say, teachers, because one of Exxon Mobil's biggest holders is the giant College Retirement Equities Fund and they can now afford new golf clubs? As Ben puts it, we can be angry at "them" all we want, but in the end, "them" is "us." It doesn't make sense to be outraged about Exxon Mobil's profits. (And before I forget - I do not hold any Exxon Mobil securities, do any work with them, or anything else. I just happen to agree with Ben.)

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