Energy

Is Warren Buffett Bullish on Oil and Energy Again?

Jon C. Ogg

Published: March 17, 2016 10:15 am

Last Updated: January 13, 2020 11:50 am

If there is one man alive who is considered to be the greatest long-term investor out there, Warren Buffett comes to the minds of many investors.

So, what happens when investors see big trends taking place inside of the full stock holdings of Berkshire Hathaway Inc. (NYSE: BRK-A)? And what happens when they think of it in the sense of oil and gas?

It turns out that Buffett has somehow and some way become selectively more aggressive about oil, gas and energy over the recent months. In fact, if you just dialed out the noise and studied buying trends you might think that he may have tried to call a bottom in the energy patch.

Two main issues here come to mind, one of which is Phillips 66 (NYSE: PSX). Kinder Morgan Inc. (NYSE: KMI) is the second thing to consider. But of course there are other issues as well. Suncor Energy Inc. (NYSE: SU) in Canada is another, and there is of course the old dilemma of Exxon Mobil Corp. (NYSE: XOM) that goes back to 2014.

In terms of energy infrastructure bets by Berkshire Hathaway, there was the $26 billion acquisition of Burlington Northern Santa Fe (BNSF). Buffett called this an all-in bet on America, but what it got a huge bump from all the oil being shipped by rail out of the Bakken Formation. This business is now slow again as Bakken activity has been lowered massively. Still, Buffett and BNSF will be there when that picks up again.

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