What Does Warren Buffett’s Purchase Say About Phillips 66

 

Phillips 66 said recently; that it had sold its specialty products unit to Berkshire Hathaway for ($1.4 billion). Berkshire, but, choose not to give for the division with cash, which would have been simple thinking its money hoard, however in shares of Phillips 66–19 million shares that Berkshire previously owns. Could that be sign that Buffett believes shares of Phillip 66, which have gained 45% this year, have run also far? Now Berkshire has done many portfolios running in the energy division this year. For example, it bought oodles of Exxon Mobil (XOM) in November, while offloading several 20 million shares of ConocoPhillips (COP)–& it gets smarter folks than me to make clear why. Still, it could be nothing more than a bright way for Buffett to keep away from paying taxes on a sale of Phillips shares. As I told previous, shares of Phillips 66 have gained 45%, & this could be one method to offload the shares without paying capital raise taxes. Phillips could then stop working the shares & everybody goes house glad. I’m sure we will learn more once everybody gets back to work on Thursday.