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XOM Analysts: Buffett likes Exxon, but that doesn't mean everyone should “When Warren Buffett gives his seal of approval to any company, that is never a bad thing,” so Exxon Mobil (XOM +1.8%) powers within reach of its 52-week high after Berkshire Hathaway added a 40M-share position.But Buffett's style of value investing may not work so well for the rest of us, even for those looking for a big defensive energy stock; Brian Youngberg of Edward Jones prefers Chevron (CVX +0.2%), which is more attractively priced relative to XOM, offers a higher dividend yield, is more profitable per barrel, and has better potential for production volume growth.Buffett's underpinning thesis for XOM purchase looks similar to his 2011 IBM purchase - difficulty growing revenues but returning a significant amount of cash to shareholders - but investors who blindly followed Buffett into Big Blue in 2011 have significantly underperformed. From http://blogs.marketwatch.com/energy-ticker/ Warren Buffett’s Berkshire Hathaway has taken a major stake in Exxon Mobil. What did the Oracle see, and should you follow him?
“Buffett has a history of buying stocks that for whatever reason are underloved,” said Pavel Molchanov, an energy analyst with Raymond James. “And Exxon is underloved … Buffett is making a somewhat of a contrarian call.”
Berkshire bought a little over 40 million Exxon shares, a stake of more than $3 billion. The size suggests that Buffett himself had a lot to do with it.
“He must see it as a good value at this point,” said Brian Youngberg, an analyst at Edward Jones. “He is taking some profit from his ConocoPhillips position, which has done well, and reinvesting it in another large energy company that he is comfortable with.”
Comments
Market Value
% of Net Assets
Exxon Mobil Corp.
$127,634,317
15.3%
http://www.peteres.com/investment-information/at-a-glance
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Top Holdings
XOM
Exxon Mobil Corp 21.79%
Chevron Corp 12.32%
Update from Seeking Alpha 11/15 2:22 PM
XOM
Analysts: Buffett likes Exxon, but that doesn't mean everyone should
“When Warren Buffett gives his seal of approval to any company, that is never a bad thing,” so Exxon Mobil (XOM +1.8%) powers within reach of its 52-week high after Berkshire Hathaway added a 40M-share position.But Buffett's style of value investing may not work so well for the rest of us, even for those looking for a big defensive energy stock; Brian Youngberg of Edward Jones prefers Chevron (CVX +0.2%), which is more attractively priced relative to XOM, offers a higher dividend yield, is more profitable per barrel, and has better potential for production volume growth.Buffett's underpinning thesis for XOM purchase looks similar to his 2011 IBM purchase - difficulty growing revenues but returning a significant amount of cash to shareholders - but investors who blindly followed Buffett into Big Blue in 2011 have significantly underperformed.
From http://blogs.marketwatch.com/energy-ticker/
Warren Buffett’s Berkshire Hathaway has taken a major stake in Exxon Mobil. What did the Oracle see, and should you follow him?
“Buffett has a history of buying stocks that for whatever reason are underloved,” said Pavel Molchanov, an energy analyst with Raymond James. “And Exxon is underloved … Buffett is making a somewhat of a contrarian call.”
Berkshire bought a little over 40 million Exxon shares, a stake of more than $3 billion. The size suggests that Buffett himself had a lot to do with it.
“He must see it as a good value at this point,” said Brian Youngberg, an analyst at Edward Jones. “He is taking some profit from his ConocoPhillips position, which has done well, and reinvesting it in another large energy company that he is comfortable with.”