Warren Buffet Sold Stake after Oil Price Collapses

Published By : 18 Feb 2015 | Published By : QYRESEARCH

After the plummeting of the Brent crude price, Warren Buffet sold his entire stake in the world’s largest energy company. He sold 41.1 million shares (almost worth $3.9bn) in Exxon Mobil. Also, in the last three months he sold his 471,994 shares in fellow US oil giant ConocoPhillips, showed the filing on Tuesday. 

This move simply means that the billionaire investor no longer holds any stock in Exxon or Conoco. But the news announced that Warren Buffet that not exited the sector completely. He has retained a few stocks in National Oilwell Varco, Suncor Energy, and Precision Castparts as reported on December 31.  

The global oil prices have collapsed from a point of more than $115 per barrel as of June to less than $50 per barrel as of last month. As of Tuesday night, the recovery on the oil prices has been slight and has traded at $62.53.

An analyst told that the rate of picking of stocks is difficult. Getting them right every time is impossible.   

The Tuesday’s filing with the US securities regulators revealed information about Berkshire that stakes had increased in IBM by almost 6.5m shares. This placed it in Deere & Company internationally.  

This is not the first time Mr Buffett has made a bad decision in the stock market, showed Berkshire's latest financial results. It also said that Mr Buffett lost $678m on his Tesco investment during the third quarter of 2014. This was his huge mistake after the discovery of a 92pc fall in first-half profits and a £263m financial shortfall. 

The Berkshire report also revealed that the net profits declined to $4.6bn in the three months to September 30. The value was compared with $5.1bn in the same period last year. Revenues increased to $51.2bn from $46.5bn.
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