A video by Bloomberg shows some of the trades in the second quarter by prominent investors. Billionaires like Warren Buffett, George Soros and John Paulson have disclosed their quarterly trades, which of course can be of great insights. Without further ado:
Buffett buys 28 million shares of Phillips 66 (PSX) and 28.9 million shares of Conocco Phillips (COP). Buffett also added stakes in National Oil Well Varco Inc. (NOV) and shed some shares in Proctor and Gamble (PG)
Clearly, Buffett is bullish on energy stocks and/or perhaps energy prices. In addition, valuations appears to be relatively low at face value, but further analysis is warrented:
Phillips 66
Estimated P/E 12/2012: 7.2015
Est. PEG Ratio: 0.7202
P/B: 1.4151
Conocco Phillips:
Estimated P/E 12/2012: 10.7734
P/B: 1.5162
Dividend Indicated Gross Yield: 4.5985
National Oil Well Varco Inc.
Estimated P/E 12/2012: 13.1552
Est. PEG Ratio: 0.7308
P/B 1.7787
Soros sells CVR Energy and Chevron Corp. but buys 884,400 shares of SPDR Gold Trust
CVR Energy
Estimated P/E 12/2012: 5.649
P/B: 2.0013
Chevron Corp
Estimated P/E 12/2012: 8.9562
P/B: 1.7005
While there is only one reason to buy, there are many reasons to sell. I suspect to free up cash to invest in gold.
Paulson increases holdings of gold by 26% to 21.8 million shares
Even though gold has posted its largest quarterly drop since '08, these billionaires, besides Buffett who is known to slam gold as an investment vehicle many times, are hinting their outlook on the economy. Perhaps expecting an even more weakening Euro, possible QE3 or further economic downturn. Whatever the reasons are, we can only speculate, but I want to know what you think.
Do these positions make sense to you? If you know more about these stocks, why do you think they staked/sold these positions? Is it the right time to buy gold?
I think the gold buying is definitely an inflation protection tactic. Not sure about the energy.
does he still have an active role in his fund anymore? Since he is like 90 or what not?
82 years old. Not sure about his role anymore but him long GOLD (Diggers) makes sense.
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