Oil costs get crashed this year, but Warren Buffett is not afraid. He bet almost $1 billion to the sector since the beginning of the year. That is how much Phillips has bought 66 shares Berkshire Hathaway since Jan. 3, according to the company, the most recent made Wednesday, it was submissions.
Berkshire already owns 61.5 million shares in the oil-refining giant, and has recently spent $964 million euros, and a further 12 million shares of the company. Buffett’s company now owns 14% of Phillips 66 stock, so it will keep Bershire is the sixth largest. As an oil-refining business, Phillips 66 is a aspect of the oil is in the industry benefit from falling oil prices.
2The decline in prices means that Phillips can buy the crude oil it refined cheaper. And it benefits from the fact that the price of gas has not fallen yet, as much as the price of oil. Phillips’ refining profits actually rose last year to $2.6 billion from $1.6 billion in the year 2014.
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“People don’t notice it because of the price at the pump down so much, but the petrol prices are quite high compared to crude oil,” said Tom Kloza, chief oil analyst for the Oil price information service. Buffett, is known to be a value investor, often purchasing shares in a market down. But he is not a big oil investor currently. Phillips 66 is the only oil company in its top 50 companies according to share tracker LionShare.
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Buffett has owned a picket fence in the society, since he bought ConocoPhillips shares in the year 2006. Phillips 66 shares have been spun off that company in 2012, Berkshire made his first of 27 million shares. Since then, Berkshire shed shares of ConocoPhillips, but it is consistently adding shares of Phillips 66.