- “When Warren Buffett gives his seal of approval to any company, that is never a bad thing,” so Exxon Mobil (XOM +1.8%) powers within reach of its 52-week high after Berkshire Hathaway added a 40M-share position.
- But Buffett's style of value investing may not work so well for the rest of us, even for those looking for a big defensive energy stock; Brian Youngberg of Edward Jones prefers Chevron (CVX +0.2%), which he says is more attractively priced relative to XOM, offers a higher dividend yield, is more profitable per barrel, and has better potential for production volume growth.
- Buffett's underpinning thesis for XOM purchase looks similar to his 2011 IBM purchase - difficulty growing revenues but returning a significant amount of cash to shareholders - but investors who blindly followed Buffett into Big Blue in 2011 have significantly underperformed.
Analysts: Buffett likes Exxon, but that doesn't mean everyone should
Nov 15 2013, 14:22 ET