Once again I have been digging into the filing and have made a summary concerning the American stocks that Berkshire Hathaway has been dealing with during the last quarter.
There were actually two completely new additions to the stock portfolio for Berkshire Hathaway and those were:
Exxon Mobile - The American oil and gas giant. I have previously made a contrarian analysis of the company and it can be found here.
Suncor Energy - Also an oil company but in this case focused on oil sands and are working in Canada, around Alberta, with the extraction of the oil.
There were also some companies were they decreased their involvement of which all can be seen in the list below.
6 comments:
Why does Buffet prefer Exxon amongst the oil companies when BP, Chevron, Total (your analysis) all look better pe pb return?
A good question! I honestly do not know.
If someone have a good answer then please post it.
Look at the number of Exxon's shares: http://financials.morningstar.com/ratios/r.html?t=XOM®ion=USA&culture=en-US
They have been buying back shares since some years already. That's probably one of the reasons.
Yeah you are probably correct. Warren likes companies that buy back shares, which is strange since it means that growth has stalled but at the same time the management are clever enough to take the financially best option for the shareholders.
BP also announced a large buyback program which i hope to profit from.
I believe Buffet view Exxon as the major oil company with the best leadership in capital allocation. So when the price is fair, he can buy with long term view. Similiar rational as his IBM investment.
Exxon I completely understand that he steps into and also according to my analysis it was pretty much a buy but IBM I find it very hard to get my head around. But it seems as if Warren cares much less about debt then what I do which means that maybe I should soften up my low debt demand and look more on ROE.
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