Seeking Alpha

Berkshire takes 40M-share stake in ExxonMobil

  • Berkshire Hathaway (BRK.A, BRK.B) takes a new 40.1M-share position in Exxon Mobil (XOM), apparently enough to make Warren Buffett's conglomerate the 6th-biggest holder of XOM shares. (13F)
  • Berkshire also added to existing stakes in Bank of New York (BK), DaVita Health Care Partners (DVA), Suncor Energy (SU), U.S. Bancorp (USB) and VeriSign (VRSN); stakes were lowered in ConocoPhillips (COP), DirecTV (DTV), GlaxoSmithKline (GSK) and Sanofi (SNY).
  • XOM +0.7% AH.
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Comments (24)
  • smurf
    , contributor
    Comments (4707) | Send Message
     
    Wonder why he's selling off some COP? Or is it just Warren being Warren?
    14 Nov 2013, 05:03 PM Reply Like
  • Hank890
    , contributor
    Comments (1382) | Send Message
     
    XOM has more LNG upside than COP....

     

    COP has better yield, though
    14 Nov 2013, 05:10 PM Reply Like
  • optionsexpert
    , contributor
    Comments (297) | Send Message
     
    Wouldn't be surprised to see XOM sell off on this news. It is old news anyway.
    14 Nov 2013, 05:42 PM Reply Like
  • civ-e
    , contributor
    Comments (448) | Send Message
     
    How do you mean old news? Was it publicized that he bought XOM already before today?
    14 Nov 2013, 05:58 PM Reply Like
  • optionsexpert
    , contributor
    Comments (297) | Send Message
     
    No but it is the fact that he bought this position a month ago. The stock has already risen 10% from then to now. And you can bet there are others who knew before the public.
    14 Nov 2013, 06:23 PM Reply Like
  • Michael Fitzsimmons
    , contributor
    Comments (9770) | Send Message
     
    It's not old news. XOM was up $0.85 to $94.07 in after hours trading.
    14 Nov 2013, 06:24 PM Reply Like
  • optionsexpert
    , contributor
    Comments (297) | Send Message
     
    Filings are old news. Position was opened well before the filing.
    14 Nov 2013, 06:27 PM Reply Like
  • dostoevsky228
    , contributor
    Comments (252) | Send Message
     
    Yeah Buffet is a day trader! Get real so called expert...So Buffet is going to sell his position tomorrow?
    14 Nov 2013, 09:34 PM Reply Like
  • optionsexpert
    , contributor
    Comments (297) | Send Message
     
    It has nothing to do with him selling his position. I never said that. Don't talk about things you have no idea about.
    15 Nov 2013, 08:50 AM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (6796) | Send Message
     
    Glad to see Mr Buffet has joined the party !

     

    http://seekingalpha.co...
    14 Nov 2013, 06:39 PM Reply Like
  • David Pinsen
    , contributor
    Comments (1076) | Send Message
     
    Great minds!

     

    BTW, just in case Hussman's crash prediction comes true early next year, XOM is pretty cheap to hedge right now. Here's one way to do that - http://seekingalpha.co...
    14 Nov 2013, 07:05 PM Reply Like
  • Jbacle
    , contributor
    Comments (24) | Send Message
     
    Some are anticipating higher Nat. gas prices as the US LNG Plants come online in 2014-15 and US Nat. gas prices begin to approach global market prices. XOM paid too much when it bought its large Nat. gas position awhile back, but that position is set to pay off now.

     

    But the global supply of LNG is set to explode as Australian, New Zealand, Africa, Malaysia, Russia and other players come online about the same time. Those plants are expensive to build and very inefficient to operate in terms of energy effficiency- net result:oversupply of LNG 2015-2018 and profit margin collapse likely.
    14 Nov 2013, 08:09 PM Reply Like
  • popeye2013
    , contributor
    Comment (1) | Send Message
     
    XOM has received an abundance of good ink lately indicating that it's about to break out. I remember Buffet bad mouthed XOM a while back and sold his position indicating that he thought it was dead money. Maybe it was a head fake. Don't forget he said he was looking into fueling his locomotives with LNG.The old fellow is a very
    cagey guy.
    14 Nov 2013, 09:16 PM Reply Like
  • dostoevsky228
    , contributor
    Comments (252) | Send Message
     
    Natural Gas=Locomotives=Buffet's CSX holdings. I love it as a XOM stockholder. Kashagan nightmare notwithstanding, this is like getting a huge upgrade from the biggest analyst in the biz.
    14 Nov 2013, 09:38 PM Reply Like
  • Veritas1010
    , contributor
    Comments (1831) | Send Message
     
    I really don't understand the move. We'll all concede XOM is a safe giant. But, with all the questionable judgments associated with Rex Tillerson compared to his predecessor Lee Raymond it just makes me wonder a bit about the ol' masters prescience vision.

     

    Today, there are better places to have one's money. If you have been generational with Exxon, like myself and my family, then I can see maintaining the stability of this lower paying and uber safe anchor. But...we've made so much "safe money" across the decades with this previously world-class firm, far be it from my mouth to "bite the hand that feeds us"...but at these prices and a world awash in oil in a stagnant global economy is this corporation going to suddenly transform itself to a present day Chevron?

     

    No.

     

    disc.long-till-I'm-gone on XOM, however in all do respect to a master investor, wouldn't have bought at $88 or $92.
    14 Nov 2013, 09:59 PM Reply Like
  • Seth Walters
    , contributor
    Comments (676) | Send Message
     
    Ownership of energy assets is an inflation hedge, no? Yellen = more tolerance for inflation.
    15 Nov 2013, 03:19 AM Reply Like
  • FleetUSA3226
    , contributor
    Comments (846) | Send Message
     
    Didn't WB say something to the effect that bonds are bad now? So XOM is much safer than bonds for his portfolio.
    15 Nov 2013, 07:10 AM Reply Like
  • Bob Carl
    , contributor
    Comments (258) | Send Message
     
    Warren Buffett is a patient long term investor. Exxon is that type of stock: you had best be patient because at any given time, it always looks overvalued relative to its peers as some commentators here have noted. But over the long term, and I mean really the long term, there are no better risk-adjusted equity investments.

     

    I am long over 10,000 XOM and continue to slowly add to my position. I am happy that my basis is lower than Mr. Buffett's.
    15 Nov 2013, 09:19 AM Reply Like
  • rwbrown.bvf@gmail.com
    , contributor
    Comments (98) | Send Message
     
    Don't forget that Warren, on several occasions, has used ExxonMobil as a positive example to illustrate why he is always so skeptical of the
    "boy wonders" of the internet.
    15 Nov 2013, 12:43 PM Reply Like
  • zoralsurgeon
    , contributor
    Comments (281) | Send Message
     
    rwbrown.. young investor here.. Can you elaborate on your comment? Do you mean he likes it when the market seems irrational or top heavy? I'm just a little confused by your comment. Thanks
    15 Nov 2013, 05:06 PM Reply Like
  • Terrence Yang
    , contributor
    Comments (7) | Send Message
     
    No, I think Warren is saying Exxon is a proven money machine whereas these "boy wonders" of the internet that rwbrown refers to:

     

    1. have unproven business models (Twitter, Angie's List) and

     

    2. face rapidly developing, hard-to-foresee threats, such as, potentially, AWS to VMware and Snapchat to Facebook.
    16 Nov 2013, 07:22 AM Reply Like
  • rwbrown.bvf@gmail.com
    , contributor
    Comments (98) | Send Message
     
    And the "wonderboys" may have infinitely high PE's, as well.
    16 Nov 2013, 11:08 AM Reply Like
  • ole/time/atsf
    , contributor
    Comment (1) | Send Message
     
    Fueling BNSF(BRK-A/B) locomotives with LNG is ridiculous, no fueling infrastructure, lower BTU=less power= higher cost/mile, conversion costs...you can't fix stupid.
    21 Nov 2013, 08:13 PM Reply Like
  • psychological-dividends
    , contributor
    Comments (816) | Send Message
     
    I think it's a good position to start, Berkshire needs to deploy capital at such a high rate and it's a decent business and profitable.
    29 Nov 2013, 12:32 PM Reply Like
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