Buffett Reveals Berkshire’s (BRK.A) Newest $4.5B Investment Pick

Billionaire investor Warren Buffett, the founder of Berkshire Hathaway (BRK-A), disclosed in a Friday night filing with the U.S. Securities and Exchange Commission the purchase of a massive stake in oil refinery Phillips 66 (PSX). As of Friday’s NYSE close, Buffett’s PSX stake is valued at approximately $4.47 billion.

The regulatory filing did not state whether the 57.98 million-share, or roughly a 10.8% stake in the Texas-based energy firm was made by Buffett himself, or by one of his portfolio managers.

On valuation measures, Phillips 66 stock it’s trading at a forward P/E multiple of 10.94x, and at a multiple of 9.94x this year’s estimated earnings.

The t-12-month revenue at Phillips 66 is $112.50 billion. PSX ‘s ROE for the same period is 19.34%. Currently, there are 12 analysts that rate the name a ‘Buy’ versus 5 rating it a ‘Hold’. No analyst rates it a ‘Sell’.

In terms of share statistics, Phillips 66 has a total of 541.63 million shares outstanding with 0.05% held by insiders and 71.50% held by institutions. The stock’s short interest currently stands at 2.22%, bringing the total number of shares sold short to 12.04 million.

Phillips 66, currently with a median Wall Street price target of $91.00 and a high target of $114.00, rose $2.21 to $77.23 in Friday’s trading.

Offering a dividend yield of 2.90%, shares of the $41.55 billion market cap oil refinery are down 8.37% year-over-year ; up 9.93% year-to-date.

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