How far is Buffett's comprehensive acquisition of Western oil?

Time is a friend of an excellent enterprise, the enemy of mediocre enterprises.

Buffett can always find the most suitable buying points in the trough of the corporate trough, and then become an important shareholder of the enterprise in one fell swoop, and insist on long -term holding.

In the fourth quarter of last year, Buffett changed its conservative strategy for six or seven years to start to "offensive".

In the past decades, Buffett has been a "disgust" emotion for technology stocks. It was not until 2016 to buy Apple, and Buffett reversed his views on technology stocks, so he often faced it against The media "regret" did not buy Amazon.

Although he has been "annoyed", I believe that the same opportunity is in front of him, and he still does not choose to buy Amazon. This can be clearly detected from his buying habits and positioning distribution.

Since the fourth quarter of 2021, Buffett began to buy energy stocks. After buying a Chevron Dragon, he bought Western oil. At that time, the market was also worried that Buffett had repeatedly repeated air stocks. Obviously this time Buffett did not choose to admit defeat as soon as buying aviation stocks, but chose to buy continuously.

In the first quarter of this year, Buffett's total number of stocks had more than $ 40 billion. Except for an insurance company, the remaining heavy heads were bet on petroleum stocks.

According to data, in February this year, after reading the record of Western Petroleum's fourth quarter financial report records, Buffett bought a total of $ 4.5 billion in Western oil stocks in five trading days, accounting for 10%of its total share capital.

After entering the second quarter, Buffett's buying movement did not stop. Betthill bought 9.55 million Western oil stocks between June 17 and 22. enter.

According to the latest SEC documents, Berkshire once again bought 12 million Western oil stocks between July 5th and 6th, which cost about 700 million US dollars, with an average purchase price of 57.94 US dollars per share. This It means that Buffett's positions have risen to 18.7%.

According to this judgment, Buffett may continue to buy until Western oil is completely acquired.

So why is Buffett so optimistic about energy stocks including Western oil? And how long can Buffett hold these petroleum stocks in the long line?

According to the current oil prices, it is clear that the performance of Western oil and Chevron has not fully fulfilled. Therefore, in the next few years, oil prices may remain at a high level. However, it is worth noting that most of the price of Buffett's buying Western oil since this year is above $ 50. If Western oil stock prices have declined, Buffett's positions are prone to losses. Therefore, I think Buffett's buying Western oil is not just fancy that it has risen.

Some analysts pointed out that Buffett's Chinese and Western petroleum is because the company may shine in the environmental protection field in the future. According to Western plans, in the second half of this year, Western oil will build a global top -level direct air capture technical facilities in Texas.

It is reported that if the project is put into operation, 1 million tons of carbon dioxide will be extracted from the atmosphere each year, and this number is currently more than 100 times the total global carbon capture. If the project is smooth, Western oil will become a leading company in the world.

It is worth noting that Western Petroleum also signed a five -year agreement with South Korea's SK International Trade, which will provide 200,000 barrels of net zero carbon emissions each year. From these two dimensions, Buffett is very likely to acquire Western oil.

In addition, Buffett's current potential positions for Western oil may be the number seen on the surface, because Berkshire also holds 100,000 preferred shares of Western oil, and the value of this part of preferred shares is $ 10 billion. In addition, Berkshire also holds 84 million shares.

In summary, Buffett's possibility of comprehensively acquiring Western oil is increasing. When Western oil debt drops to less than $ 20 billion, its company will become investment -level companies, and Buffett's intention may be more obvious. Therefore, the outside world must not only see Buffett's preference for oil stocks, but also the meaning behind it.

- END -