Berkshire Hathaway is using the weakness in the energy market to increase its stake in refiner Phillips 66 (PSX), which has been mostly immune to the downward pressure on oil prices, as the demand for refined products, including gasoline, diesel and aviation fuel remains strong.
Berkshire picked up 35,781 shares of Phillips 66 stock on Monday, January 4, 2016, in three transactions. Berkshire bought 612,095 shares at $78.1247 per share, 126,390 shares at $79.1632 per share, and 20,810 shares at $79.6654 per share.
In August, Berkshire revealed that it owned more than ten-percent of Phillips 66, and the new purchases brings its stake to 62,294,493 shares, which is roughly 12-percent.
About Phillips 66
Phillips 66 was spun-off of ConocoPhillips in May 2012, and in addition to its refining and petrochemical business, the company also transports crude oil, refined products, natural gas and natural gas liquids (NGL). It gathers, processes and markets natural gas and NGL to power businesses, heat homes and provide feedstock to the petrochemical industry.
The company’s 52-week share price high was $94.12, and it currently pays an annual dividend of 56 cents, yielding 2.98%.
© 2016 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.