#10 - Phillips 66 (NYSE:PSX)
Phillips 66 (PSX) is another example of a company that Buffett may actually own too much of. In a move that was discussed with Phillips 66, Berkshire sold $35 million shares of stock back to Phillips 66. Although this sale amounted to a 43% reduction in Berkshire's stake, the sale was done in order to keep Berkshire's ownership stake to less than 10 percent. By selling the stock back to the company, the shares did not become outstanding shares which may have hurt the stock. And Buffett reiterated his belief in the stock and affirmed that the sale was strictly done to avoid enhanced regulatory scrutiny. Buffett's faith in the company seems to be justified. Phillips 66 announced strong second-quarter adjusted earnings of $1.3 billion or $2.84 per share. This beat analysts' estimates by 25 percent. They also reported a 14 percent increase in their dividend in the second quarter. Chairman and CEO Greg Garland commented, "Our diversified portfolio generated strong earnings and cash flows this quarter. We advanced strategic growth initiatives and continued to reward our shareholders."
About Phillips 66
Phillips 66 operates as an energy manufacturing and logistics company in the United States, the United Kingdom, Germany, and internationally. It operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The Midstream segment transports crude oil and other feedstocks; delivers refined petroleum products to market; provides terminaling and storage services for crude oil and refined petroleum products; transports, stores, fractionates, exports, and markets natural gas liquids; provides other fee-based processing services; and gathers, processes, transports, and markets natural gas.
Read More - Current Price
- $133.27
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 11 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $149.69 (12.3% Upside)
Warren Buffet practices and promotes a long-term investment strategy that has demonstrated proven returns over several decades. From controlling your emotions to not panicking to investing in what you understand, the principles Buffett promotes can help investors make good decisions. His investment firm Berkshire-Hathaway once again reported strong earnings and actually is facing a decision regarding how to deploy an unusually high cash reserve.
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