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IPFS News Link • Business/ Commerce

Does Buffett See A Bottom In Oil Prices?

• Zero Hedge

Buffett's Berkshire Hathaway Inc. paid some $390 million for another 5.1 million shares of oil refiner Phillips 66 this month, boosting its investment to 65.68 million shares that today are worth around $5.21 billion. Phillips 66 shares closed up at $4.03 (5.4 percent) at $79.28 on the New York Stock Exchange on the deal.

Experts have been calling the bottom since the price of oil dropped to $80/barrel. Now, it's below $30/barrel, and of course those calls continue, but when Buffett makes a contrarian move, these calls get more credence.

Though everyone watches Buffett closely and his moves can set trends, his record in oil investing hasn't been stellar.

The first time he bought ConocoPhillips—parent of Phillips 66 before the two split in 2012—was from 2007 to 2009, when both its price and oil prices were at their peak.

He sold 44 percent of the stock around the lows of crude oil in 2009, and the rest over a period of time until 2013. What's more, he has admitted his mistake in picking a very large stake at the wrong time. It ended up costing him millions.


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