Buffett's Berkshire buys sizable new Exxon Mobil stake

By Jonathan Stempel and Luciana Lopez



Warren Buffet, CEO of Berkshire Hathaway, leaves the first session of the annual Allen and Co. conference at the Sun Valley, Idaho Resort July 10, 2013.
Credit: Reuters/Rick Wilking




Buffett's Berkshire buys sizable new Exxon Mobil stake



(Reuters) - Warren Buffett's Berkshire Hathaway Inc on Thursday disclosed a new $3.45 billion stake in Exxon Mobil Corp, after buying 40.1 million shares in the world's largest publicly traded oil company.

Although the investment represents just 0.9 percent of Houston-based Exxon's shares, analysts said it reflects strong support by the second-richest American of one of the world's largest and most profitable companies.

Berkshire already has energy and utilities businesses, including MidAmerican Energy, which is spending $5.6 billion to buy Nevada utility NV Energy Inc.

"Buffett is a classic value investor, and Exxon has been an under-loved stock in a bull market," Molchanov said. "Exxon is an amazing cash generating machine, which should generate $16 billion of free cash flow this year."

Berkshire also reported higher stakes in Bank of New York Mellon Corp, dialysis clinic operator DaVita HealthCare Partners Inc, satellite TV provider DIRECTV, Suncor Energy Co, US Bancorp and Verisign Inc, which assigns Internet protocol addresses. Its stake in drugmaker GlaxoSmithKline Plc fell.

Berkshire also owns more than 80 businesses in such areas as insurance, railroads, utilities, chemicals and food. It paid $12.3 billion in June for half of ketchup maker H.J. Heinz Co.

On Thursday, Berkshire's Class A shares rose 0.7 percent to $173,320, and its Class B shares rose 0.8 percent to $115.69.

(Additional reporting by Anna Driver; Editing by Gary Hill,Ken Wills and Bob Burgdorfer)





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Source: http://www.reuters.com/article/video/idUSBRE9AD1BO20131115?videoId=274534783