Berkshire Hathaway Inc. (NYSE:BRK.A)‘s Warren Buffet has had to face some disappointment to the tune of $280 million from his investment in the energy giant, Exxon Mobil Corporation (NYSE:XOM). Jonathan Marino reported on TheStreet that Buffet must have breathed a sigh of relief as Exxon’s stock price looks to be rebounding.
” Buffet increased his position in Exxon Mobil Corporation (NYSE:XOM) earlier this year. The stock is down nearly 7% in 2014, in part due to the losses in October. Shares are now rebounding and that is good news for Berkshire, which has nearly $4 billion invested in the oil company. Exxon’s latest earnings beat a couple of weeks ago was good news as well […],” reported Marino.
Exxon Mobil Corporation (NYSE:XOM) is among the biggest oil companies in the world. Oil prices are a significant factor with regards to profitability of these companies and from the looks of it they are still struggling to find their support level.
It will be interesting to find out what Berkshire Hathaway Inc. (NYSE:BRK.A)’s strategy is considering the prevalent conditions in the oil market. In other words, does the Holding Company have an exit plan, since there are many other profitable opportunities in the stock market?
Exxon Mobil Corporation (NYSE:XOM) is not the only disappointment that Berkshire Hathaway Inc. (NYSE:BRK.A) has had to face during the last month or so. International Business Machines Corp. (NYSE:IBM)’s stock plummeted after a weak Q3 Earnings Report as well. However, as with Exxon, Berkshire has shown considerable faith in the company and proceeded to buy more stock, instead of liquidating some of its position.
Berkshire Hathaway Inc. (NYSE:BRK.A) has also been in the news recently on account of its deal with Procter & Gamble Co (NYSE:PG). Warren Buffet’s Holding Company is set to buy Duracell from P&G by paying the consumer packaged goods producer $4.7 billion worth of P&G shares that Berkshire had previously acquired.
Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.