Buffett smashed tens of billions of dollars to buy such stocks!

Since the beginning of the year, Buffett has continued to increase its energy stocks represented by Western Petroleum and Chevron, and has made tens of billions of dollars in investment.

Energy stocks have not disappointed stock gods this year.

After 10 years of predicament, energy stocks raised their eyebrows and became the biggest winner in the US stock market this year.

So far this year, the S & P 500 energy sector has risen by more than 40%, while the S & P 500 index has fallen 11.28%during the year.

It should be noted that the US Federal Energy Management Commission has authorized Berkshire Hathaway, which has been authorized by Buffett on August 19 to buy up to 50%of Western Petroleum Corporation, which is higher than the current shareholding ratio of more than 20%. This also means that Buffett's probability in the future will continue to increase the energy stocks.

Chongyang Investment Partner Shu Taifeng told the 21st Century Business Herald reporter that Western oil is in line with several typical characteristics of Buffett's investment:

The first is cheap. Buffett is more than 9 times when buying Western petroleum, and the current PE of the oil industry is more than 12 times, which allows Buffett to purchase Western oil stocks at a price below the price.

Secondly, the texture of Western oil is improving, mainly manifested as a reduction in debt. Due to early mergers and acquisitions and other reasons, Western oil liability ratio is very high, but since 2019, it has been seeking to reduce debt. In the Q1 financial report of 2022, Western oil has clearly proposed that it will pay 5 billion US dollars in debt in the near future to reduce its liabilities to 200 to 200 In the mid -term, the debt was reduced by high double -digit number in the medium term. As net liabilities decrease, shareholders' value has begun to rise. Starting from Q4 in 2020, the proportion of western oil's net liabilities accounted for its total assets from 67%to 27%today, and the value of shareholders has also increased from 16%to 62%today.

In addition, Shu Taifeng also said that global energy supply will still be short in the future, which is also a major reason why Buffett favors energy stocks.

Buffett believes that due to energy transformation and investors' general indifference to the traditional energy industry, the future energy will continue to be short of shortage.

- END -