pa31 This is not investment advice, but the energy sector...

pa31

This is not investment advice, but the energy sector constitutes 6% of S&P ASX200. This is useful as a guide in terms of portfolio weighting. For balanced investors and those who are risk averse, one should be able to justify an allocation which differs (markedly) from this level of exposure.

If you had (for example) $2.0M in Australian equities, then $100k in total of energy stocks would represent neutral weighting. (It may not be prudent to execute a single transaction of $100k, but the weighting would be acceptable.)

If you had (for example) $500k in Australian equities, then $100k in total of energy stocks would be grossly overweight. It would require a degree of conviction and (as for other high-risk asset classes) patience. A long-term horizon generally refers to at least five years.

Without passing judgement, your communications suggest a potential deficiency in fundamental concepts. There is nothing wrong with learning - losing capital (and emotional distress) is a necessary step in acquiring knowledge while investing. However, this may be an opportunity for you to seek professional advice before committing in blind faith.

Good luck!