When Warren Buffett makes an investment decision, the finance world takes note. Buffett, leader of Berkshire Hathaway and billionaire investing guru, last week added 82,361 shares to his stake in Phillips 66 (PSX), the Houston-based multinational energy corporation, and his decision to up his position has investors around the country looking more closely at the company and speculating about what the investment giant will do next. This comes after news from a 13F report filed with the SEC in July that Buffett's Berkshire Hathaway had invested well over $1 billion in new Phillips 66 shares through the first half of the year.
Periodic Increases in Position
At the end of 2015, Buffett held an 11.8% stake in Phillips 66 stock, owning over 61 million shares. By the end of June of 2016, Berkshire Hathaway had added approximately 18 million more shares to the stake, marking a new investment of about $1.39 billion in the first six months of the year and an increase to a stake of about 15% of total shares available. In contrast, the newest information about Buffett's purchase is relatively small; 82, 361 shares at $77.86 each. The grand total of the purchase was about $6 million, and it marked another slight increase to Buffett's growing position.
Phillips 66 Stock Movements
By the end of August of this year, shares of PSX stock purchased in 2015 had lost about a nickel in value each, on average. On the other hand, those purchased in 2016 had gained just under 2% in value, on average. The energy conglomerate has seen some disappointing news in recent months, including a fourth-quarter report from 2015 that prompted a slump in stock prices in January. This was followed by a rally over the subsequent months, although the stock prices were once again dealt a blow when a similarly disappointing first-quarter report was released in April. Most recently, the company has been in the news over a controversial pipeline that, if built, would extend over 1000 miles and deliver oil from North Dakota. The project, which is 25% owned by Phillips 66, is making headlines over protests by members of the Standing Rock Sioux tribe and issues regarding the placement of the pipeline.
Warren Buffett has followed Phillips 66 with a watchful eye over the past couple of years, purchasing groups of shares when the price of the stock tends to dip slightly. Because Berkshire has purchased shares in blocks as small as 100 and up to the millions at once, it is clear that Buffett has long-term plans to invest in the company and that he is hoping to wring every bit of profit possible out of the transactions.