WWWD is not a web address, it's short for What Would Warren Do? Berkshire Hathaway disclosed that it has doubled its stake in ConocoPhillips (NYSE:COP) to 17.9M shares and picked up new positions in General Electric (NYSE:GE) -- 7.8 million shares -- and United Parcel Service (NYSE:UPS) -- 1.4 million shares. While these are not earth shaking numbers, we do know that Mr. Buffet is a long-term investor and his leadership often gets funds piling in behind him.
As any reader of mine knows, GE has a great macro story and I am a very happy LEAP holder of that one. UPS is a play on the global economy and Berkshire's call makes me think the current dip is looking more like a consolidation for the next move up. COP scares me as I see it as an endorsement of high oil prices, but I suppose not so high as to derail the rest of the economy.
Berkshire also added 7% to its substantial holdings in superbank Wells Fargo (NYSE:WFC) but sold shares in H&R Block (NYSE:HRB) (who didn't), Home Depot (NYSE:HD) (interesting), Iron Mountain (NYSE:IRM) (perfect timing), Lexmark (NYSE:LXK) (oops) and Sealed Air Corp. (NYSE:SEE) (good call!).
Based on this, I will be taking up the GE Jun $35s for .45 as I need little reason to make that bet and the UPS Jun $85s for .25. I'm not touching COP yet but I will be very interested once oil hits bottom (hopefully not until $65).
WFC is overbought and I will wait for a dip but I'm very sorry I didn't pick them up at the same time we bought C last month (I picked one rather than spread the play).
If Buffet thought LXK was overbought in the mid $40s last quarter then I can't imagine what he would think at $52 and I am concerned about those $399 Dell color lasers anyway so let's go with the Jun $50 puts at .90 but getting out if they drop to .70 for sure!