Buffett can't carry it!Losses in the second quarter of 293.3 billion yuan, do you still need to continue adding oil oil?

Kaocang oil stocks have become Buffett's inertia this year.

But whether high oil prices can be maintained, you need to draw a question mark.

On August 2nd, Western Petroleum released the 2022 interim report and the second quarter results. The financial report showed that the operating income of the first half of this year was US $ 19.268 billion, a year -on -year increase of 67.71%, net profit of US $ 8.631 billion, and a basic earnings per share of $ 8.71; In the second quarter, Western oil realized revenue of US $ 10.735 billion, an increase of 78.6%year -on -year; net profit was US $ 3.755 billion, a year -on -year increase of more than 3600%.

The release of Western oil performance seems to understand the firm confidence of Buffett's investment in Western oil. Judging from the investment trajectory of Buffett this year, continuing to buy oil stocks should be Buffett's long -term strategy in the future.

Betting on oil stocks, betting oil prices continue to rise, is Buffett's judgment on the market. So will Buffett look at it in the future? Will it repeat the mistakes of buying aviation stocks?

On the one hand, this depends on the direction of international oil prices, and on the other hand, it depends on whether the performance of the company is sustainable.

In fact, since last year, Buffett's investment in oil stocks has continued to increase, entering the second quarter of this year, especially in July. Buffett's buying movement significantly intensified. Three days on July 11, 12, and 13, Buffett purchased a total of $ 250 million in Western oil stocks three times in a row. Of course, his purchase behavior did not stop. On July 14th, 15th, and 18th, he continued to buy $ 112 million in Western oil stocks. As of now, Berkshire's holding of Western oil has risen to 19.4% Essence

It is reported that according to the US equity accounting law, once investors have 20%of ordinary shares of a company, a certain percentage of the company's income should be included in its own performance, which is also commonly known as "parallel".

Of course, the market also believes that Buffett continues to buy Western oil to fully acquire, not just investment. Truist Securities Analyst Neal Dingmann said that if the credit rating of Western oil returns to the investment level, Buffett is likely to start a comprehensive acquisition of Western oil.

In addition, it is worth noting that Western petroleum has also started a series of repurchase this year, and with the thickening of Western oil profits, continuing debt repayment will also be a high probability event. At that time It will be a high probability event.

As of now, Western oil dynamic price -earnings ratio is only 5.38 times. In other words, Buffett may still think that Western oil is undervalued as a whole.

In addition, the direction of international oil prices has also become an important criterion for whether to continue to invest in oil stocks. Recently, with the market's concerns about the decline of the economy, Brent crude oil and Nymex crude oil have not been able to continue to be high.

As of August 5, the price of NYMEX crude oil was $ 88.53, a mark of $ 90; Brent crude oil was $ 94.66, a high point from $ 125, a significant decline.

It is worth noting that Buffett has started to lose money in the second quarter.

On August 6, local time, Berkshire Hathaway announced the second quarterly report. The financial report showed that the revenue of Berkshire Hathaway in the quarter was US $ 76.18 billion. US dollars (about RMB 293.3 billion), the same period last year's profit was US $ 28.425 billion; operating profit was US $ 9.283 billion, and the same period last year was US $ 6.686 billion. It is worth noting that Berkshire's losses in investment and derivatives in this quarter reached US $ 53.038 billion, of which the stock book loss was as high as US $ 66.86 billion (about RMB 4521).

In the financial report, we found that Berkshire reminded investors not to pay too much attention to the fluctuation of investment income in the company's financial report. The financial report pointed out that "investment profit or loss in any quarter is usually meaningless. The net income data provided by it may have a great misleading of those investors who have little or unknown accounting rules or unknown."

In summary, I think from Buffett's investment in Apple, Berkshire rarely pays attention to changes in the quarter or two years of investment targets. Therefore, I think I still want to lengthen the time axis to see Buffett's investment.

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