Don't be afraid to fall, buy another $ 500 million!Why does Buffett "dead" western oil?

Fear and greed are the natural boundaries between ordinary people and investment masters.

Buffett once said, "If you don't want to have a stock for ten years, don't consider it for ten minutes." Therefore, he is very cautious about every stock bought. If it is not because of the sudden change in the market, Buffett's positions have basically changed.

Since entering 2022, Buffett has changed the investment style of the past and began to shift from caution to radical. In just the first quarter of this year, Buffett bought $ 51.8 billion in stocks, which is equivalent to one -third of Berkshire's cash reserves. point.

What has caused Buffett's investment style to change in recent years.

As we all know, Buffett has always favored companies with good traditional and cash flow, which has also led to his banquet of science and technology stocks. In an interview, he said that he regretted miss Amazon.

When buying a company that can understand logic has always been his creed of life. When he bought Apple for the first time in 2016, he did not actually use the logic of technology stocks, but bought it according to the logic of consumer stocks. He believes that hundreds of millions of users have a large dependence on Apple's products, and Apple's cash flow is very good, so in the following years, Buffett has increased its positions all the way to Berkshire to become Apple’s Under the third largest shareholder.

At present, Apple is the largest heavy stock stock of Berkshire, with a proportion of nearly half of the position. And for Apple, Buffett's attitude has always been the opportunity to add a little as long as the stock price declines. However, when we go to study Buffett's favorite preferences, we will find that his focus is still focused on insurance, energy, and banking direction.

Since the fourth quarter of last year, Buffett began to buy oil stocks, and the most purchased was Chevron and Western oil. It is worth mentioning that when buying Western oil, Buffett bought 14%of its shares in two weeks.

In addition, he spent $ 11.6 billion in cash to acquire property and accident reinsurance company Alleghay Corp. It is not difficult to find from Buffett's position changes. As the international situation is becoming increasingly complicated, Buffett has smelled some changes and began to take the initiative to reduce cash reserves.

According to the latest regulatory documents, Buffett continued to increase western oil from June 17th to 22nd. According to estimates, Buffett spent more than $ 500 million in this increase in western oil.

After the completion of this holding holdings, the proportion of Berkshire's holding Western oil rose from 15.28%to 16.3%, with a shareholding scale of about 152.7 million shares, and the market value of about 8.5 billion yuan was the sixth largest largest in Berkshire. Holding stocks.

It is reported that in the end of May, Western oil has fallen, a wave of declines, a decline of nearly 20%. Some institutions estimated that if Buffett has not been in stock since March, he may face book losses. If calculated from the end of last year, the increase in Western oil has doubled.

Do not fear falling to continue to add western oil. This is Buffett's attitude and one of the important directions of Berkshire's future. Buffett once said: "We will not buy and sell because of market conditions or economic situations, because we are not clear about the actual situation, and we are not particularly at the opportunity."

实际上我认为，对于全球经济走向的判断巴菲特向来比较准确，在数次穿越牛熊以后，巴菲特对于经济本质的判断已经达到了炉火纯青的地步，尽管布油的价格已经从125美元的高价跌落至108.99 US dollars, but this still does not change the trend of international oil prices.

In summary, in order to "hedging", I think Buffett will continue to increase its holdings in the future, and the greater the amount of Buffett's buy, the greater the amount of Buffett. And this time Buffett's charity lunch can shoot a high price of $ 19 million, a large part of the credit is because of the success of Buffett's investment strategy this year.

When we extend the axis and ignore the short -term fluctuations, we will find that Buffett rarely makes mistakes. Therefore, Buffett's favor for energy itself can also explain many problems in itself.

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