> Warren Buffett Blog: Warren Buffett buys Phillips 66 oil refiner stock

Monday, August 31, 2015

Warren Buffett buys Phillips 66 oil refiner stock

Warren Buffett's Berkshire Hathaway Inc has invested $4.48 billion to acquire 57.98 million shares or roughly 10.8 per cent stake in oil refiner Phillips 66, hoping to gain from current low prices of oil company stocks.

Berkshire is reinvesting in the Houston-based company, after divesting nearly two-thirds of its stake in February 2014 by swapping $1.35 billion shares for a chemicals business acquired by its Lubrizol unit.

Berkshire revealed the acquisition of roughly 10.8 per cent in Phillips 66 in a filing with the US Securities and Exchange Commission. 

Phillips 66's share price has dropped by less than 1 per cent while crude oil prices have fallen by more than half. The company's shares closed at $77.23 on Friday.

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.

Crude oil prices have since fallen by more than half, though Phillips 66's share price has dropped by less than 1 percent.