Warren Buffett, George Soros Betting Big On Oil Producers
Regulatory filings this past quarter revealed that legendary investors Warren Buffett and George Soros increased their stakes in two well-known oil producers. Bloomberg’s Erik Holm, Edward Klump, and Linda Shen wrote on November 14:
Warren Buffett’s Berkshire Hathaway Inc. became the largest shareholder in oil producer ConocoPhillips… in the third quarter as stock markets tumbled.
Berkshire had more than 83 million shares in Houston-based ConocoPhillips as of Sept. 30, compared with about 17.5 million on March 31, the company said today in a regulatory filing…
ConocoPhillips traded as low as $67.31 a share in the third quarter after closing 2007 at $88.30.
According to the Bloomberg reporters, the Chairman of Berkshire Hathaway is taking a chance on the oil producer based on the forecast for increased global consumption down the road. They wrote:
Berkshire, which purchased MidAmerican Energy Holdings in 2000 and reported record profits last year from selling holdings of PetroChina Co., is betting on a long-term increase in energy demand worldwide. Global oil consumption will increase about 25 percent to 106 million barrels a day by 2030, the International Energy Agency said this week.
Petrobras Oil Derrick
Like the legendary stockpicker from Omaha, George Soros also increased his position in a major oil producer. MarketWatch’s Tony Cooke wrote on November 15:
The hedge fund of billionaire investor George Soros increased its stake in Brazilian state-run oil company Petroleo Brasileiro (PBR) to 21.1 million American Depositary Receipts as of Sept. 30 from 11.5 million at June 30.
Soros Fund Management LLC made the move as the ADRs tumbled during the quarter to about $44 from about $71 each…
The Petrobras stake was by far the largest in the Soros fund’s reported holdings, which totaled $3.8 billion at Sept. 30, up from $3.7 billion at June 30.
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Sources:
“Buffett’s Berkshire Boosts Stake in ConocoPhillips (Update3)”
Erik Holm, Edward Klump, and Linda Shen
Bloomberg, November 14, 2008
“Soros fund ups Petroleo Brasileiro stake”
Tony Cooke
MarketWatch, November 15, 2008
