Billionaire investor Warren Buffett’s company has amassed a stake worth nearly $4.5 billion in Phillips 66 more than a year after trading a chunk of its holding in the oil refiner for a chemical business investment.
A regulatory filing says Berkshire Hathaway Inc. has accumulated about 58 million shares, which amounts to more than 10 percent of the Houston company’s stock.
In late 2013, the Omaha, Nebraska, company agreed to trade about $1.4 billion of its Phillips 66 stock for one of the refiner’s businesses that makes additives to help crude oil flow through pipelines.
Concern over China’s growth roiled global financial markets earlier this week and created a buying opportunity for Berkshire. Phillips 66 shares fell below $70 on Monday amid a broad sell-off before rebounding sharply later in the week.
Still, Berkshire may have been accumulating the stake for some time, given the scale of the holding, said Gallant. The filing discloses the prices Berkshire paid for only a fraction of its stake.
Earlier this month, Berkshire didn’t disclose an investment in Phillips 66 at the end of the second quarter. At the time, Buffett’s firm also said it had omitted some data that was reported confidentially to regulators. The Securities and Exchange Commission sometimes allows companies to withhold information from the public to limit copycat investing while a firm is building or cutting a position.
Buffett requested confidential treatment in 2011 filings, as he spent more than $10 billion amassing a stake in International Business Machines Corp. He did the same while building a holding in Exxon Mobil Corp. in 2013.
Many investors watch Berkshire Hathaway filings closely because they like to copy Buffett’s moves given his successful record.
Phillips 66 shares closed at $77.23 Friday and have advanced about 8 percent so far this year.
Original CNBC Source
Original Bloomberg Source