Source: Wall Street
At a time of market panic, Warren Buffett bucked the trend to increase the size of energy stocks and made big bets on the shares of Western oil companies, really "greedy when others were afraid."
The decline in international oil prices continued to widen as investor fears of a US recession and Biden's plan to call for a moratorium on gasoline taxes to reduce soaring energy costs. At a time of market panic, Warren Buffett bucked the trend to increase the size of energy stocks and made big bets on the shares of Western oil companies, really "greedy when others were afraid."
The latest regulatory documents showBuffett's Berkshire Hathaway (BRK) bought 9.55 million shares of OXY between June 17 and 22 at prices ranging from $54.96 to $56.42 per share.As a result, the direct shareholding scale reaches 152.7 million shares.
Source: SEC
Western oil shares fluctuated between $58.74 and $54.30 between June 17 and 22, approaching an intraday low of $51.43 on April 25 and a low of $50.93 on March 9.
Buffett said in a previous interview with the media that he was betting that oil prices would rise for a long time.
Wall Street News mentioned earlier that in the 13F report in the first quarter, nearly half of the holdings were oil stocks, especially 136 million shares of Western oil companies and 120 million shares of Chevron Corp. In the first quarter of the plunge in u.s. stocks, the shares of western oil and Chevron Corp rose 134% and 47% respectively, and the rise continued unabated. Shares of western oil companies have soared 91% this year, making them the best performers in the s & p 500.
At the general meeting of shareholders in 2022, Buffett, 91, and Munger, 98, reappeared as partners. Speaking of his huge investment in Western oil at the shareholders' meeting, Buffett said that Western oil companies had good annual reports, so they decided to invest. He said he bought 14 per cent of the company's outstanding shares in the first two weeks of March, worth more than $7 billion, compared with 60 per cent of the shares of western oil companies. He also points out that if index funds that own large stakes in Western Oil are taken into account, the stakes are actually larger.
When asked how to seize investment timing like Berkshire, Buffett replied:
We never figure out how to determine the timing of the market, and we occasionally seize opportunities, not because we are smarter, but because we are more rational. Don't buy or sell because of market or economic conditions, but buy when you think your investment is cheap.
Buffett bottomed out, what kind of choice will investors make?
Edit / somer