Buffett dumps Exxon-Mobil

Dante
By Dante on Thu, Feb 19, 2015 - 1:20pm

I haven't seen this discussed yet.

http://www.bloomberg.com/news/articles/2015-02-17/berkshire-cuts-exxon-m...

Is seems counter to his "buy solid dividend companies and hold" policy.

Is he changing his view on energy or is he just seeing a top and planning to dive back in at some future bottom?  Any thoughts?

,

2 Comments

Oliveoilguy's picture
Oliveoilguy
Status: Platinum Member (Offline)
Joined: Jun 29 2012
Posts: 578
Buffett in't always right

XOM is still one of my largest positions. I like the dividend and the security and feel safer there than in the US government treasuries.

dmath's picture
dmath
Status: Member (Offline)
Joined: Dec 17 2014
Posts: 7
Exxon

I'm not any kind of expert.  That said, I wonder if the recent statistics indicating that as of 2013, worldwide deployment of NEW energy facilities, renewables have surpassed fossil fuels, is not an indicator that mid range outlook for fossil fuel companies may be worse than people realize; ie, they will end up having to leave most of their assets underground.  Combine that with the odd thing that the Rockefeller Foundation, an oil fortune, is divesting from fossil fuels and investing in renewables.  Buffet isn't always right.  But he has frequently seen around corners that others have missed.  

There are a number of studies indicating that, far from being death to the economy, the financial activity and jobs resulting from a changeover to non-carbon energy sources would stimulate the economy rather than hurt it.  Gainsville Texas, of all places, has signed contracts going to 100% renewables by 2017, and the city manager stresses that this move is strictly because it will save them money.  Sooner or later, the fossil fuel industry will be on its own, battling to protect its turf through government influence against a large majority who will benefit from the creative destruction of a major switch to clean energy.  The Koch Brothers billion for 2016 is clearly part of this effort already underway.  As I said, I'm no expert, but for these reasons, and just guessing, I've sold all FF stocks, and recently bought a small stake in SolarCity, a venture backed by Elon Musk.  Based on valuation, I sold my stake in Tesla after a large (for me) profit, but if a big drop in the market took it down to size, I would buy it again.  My paltry investment won't move the market.  Hope I live long enough to see what happens, just for the fun of betting on a ballsy visionary against a bully.

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