Berkshire Hathaway Builds Stake in Refiner Phillips 66

30 Aug 2015 | Author: | No comments yet »

Berkshire Hathaway Inc. (BRK.A) Reveals $4.50 Billion Stake In Phillips 66 (PSX).

Warren Buffett’s Berkshire Hathaway disclosed a $4.5 billion stake in Phillips 66, the Houston-based oil refiner, as the billionaire investor’s company increases its bet on the energy industry.Until this week, when the price briefly fell below $70, Phillips 66 shares have since April traded around or slightly above their current price. “They seem to be taking the long view that demand for fuel is going to come back”.Phillips 66 (NYSE:PSX) major shareholder Berkshire Hathaway Inc bought 3,175,041 shares of the firm’s stock in a transaction that occurred on Friday, August 28th.

Berkshire held almost 58 million shares after purchases this week, or more than 10 percent of the total outstanding, according to a regulatory filing issued Friday by Buffett’s Omaha, Nebraska-based company. Berkshire once held a large stake in the Houston-based company, but shed nearly two-thirds of it in February 2014 when it swapped $1.35 billion of shares for a chemicals business that it folded into its Lubrizol unit.

To help put Buffett’s life and accomplishments into perspective, our staff has put together a handy visual guide that includes key statistics and the company’s biggest investments. In an Aug. 14 SEC filing detailing its U.S. stock holdings, Berkshire did not mention Phillips 66, after having previously reported a 7.5 million-share stake as of March 31, but said it disclosed some information confidentially to the regulator.

The SEC sometimes lets Omaha, Nebraska-based Berkshire do this so Buffett can quietly buy a large amount of stock, without worrying about investors piggybacking on the famed investor’s apparent stamp of approval. 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. Berkshire does not normally say whether Buffett or his portfolio managers Todd Combs or Ted Weschler make specific investments, but larger investments are generally Buffett’s. It also owns more than 80 businesses, and on August 10 said it would buy Precision Castparts Corp , which makes parts for the aerospace and energy industries, for roughly $32.3 billion.

Goldman Sachs downgraded Phillips 66 from a “buy” rating to a “neutral” rating and dropped their price objective for the stock from $93.00 to $91.00 in a report on Tuesday, July 14th. It collects, processes, transports and markets natural gas, and transports, fractionates and markets natural gas liquids (NYSE:PSX) in the United States. The refining segment buys, sells and refines crude oil and other feedstocks into petroleum products (including gasolines, distillates and aviation fuels) at 14 refineries, chiefly in America and Europe. Receive News & Ratings for Phillips 66 Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Phillips 66 and related companies with MarketBeat.com’s FREE daily email newsletter.

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