But it also generates the most cash flow per share. Energy trades at the lowest price-to-earnings valuation of any sector in the S&P 500 Index, according to data compiled by Bloomberg. Persistent concerns over the sector’s environmental, social and governance performance, poor pre-pandemic returns and the risk of declining demand for fossil fuels in the decades ahead have soured many investors on the industry. On one level, it’s classic bargain-hunting by Buffett and Berkshire Vice Chairman Charlie Munger. Meanwhile, Berkshire’s energy division is lobbying hard for a bill that would see Texas spend at least $10 billion on natural gas-fired power plants to back up its grid. by 15% and bought more stock in five Japanese commodity traders. This year it has also increased its holding in Occidental Petroleum Corp. is using this year’s dip in commodity prices to load up on some of Buffett’s favorite oil and gas investments, showing that history’s most famous investor sees opportunity in a sector long disfavored due to its volatility and effects on the climate.Įarlier this month, Berkshire agreed to spend $3.3 billion to boost its stake in a liquefied natural gas export terminal in Maryland. Oil Trader Vitol Doubled Average Pay on Record $15.1 Billion Profitīerkshire Hathaway Inc. Why South Africa Is on the Brink of Chaos US Recession Becomes Closer Call as Economists Rethink Forecasts Putin Warns Poland Over ‘Aggression’ Against Ally Belarus The Bear Market Has Nearly Been Erased, Fewer Than 20 Months After It Began But instead of selling out for a huge profit this year, the Oracle of Omaha wants more. (Bloomberg) - Warren Buffett’s multibillion-dollar purchases of oil and gas investments early in the pandemic paid off when the sector cranked out record earnings in 2022.
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