Buffett finds value in oil wreckage

Warren Buffett is finding something to buy amid the oil market wreckage.

In the days before crude fell below $30 for the first time in 12 years, Buffett’s Berkshire Hathaway was picking some shares of oil giant Phillips 66 as that stock hit three-month lows.

In three days of purchases just revealed in an SEC filing, Berkshire bought almost 2.5 million shares of the company at an average price of $77.22.

That’s just around $190 million worth, a small percentage of Berkshire’s total stake that’s now worth almost $5 billion, but it does indicate that Buffett is finding some value as prices drop.

The most recent, and largest, purchases were made last Thursday when the stock went as low as $75.95.

Since then the stock has continued to edge lower, hitting $74.37 on Monday. The shares ended Tuesday at $77.82, up more than 2.1 percent.

As there can be a lag of several days between purchases and SEC filings, we may find out soon that Berkshire continued to buy.

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