Warren Buffett buys sizable new Exxon Mobil stake

Warren Buffett’s Berkshire Hathaway Inc on Thursday disclosed a new US$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% 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.

In June, Berkshire Hathaway announced it had taken a $500-million stake in Suncor Energy Inc., Canada’s largest integrated operator and major oil sands company. Exxon also has sizable exposure to Canada with a 70% stake in Imperial Oil Ltd., another major oil sands operator in Canada. The deal gives the Oracle of Omaha exposure to growing oil markets across a number of hot oil markets such as U.S. shale, the Canadian oil sands, Kurdistan and Russia, among others.

Warren Buffett's Berkshire Buys Stake In Exxon Mobil

Warren Buffett, chairman and CEO of Berkshire Hathaway (BRK.A)(BRK.B), just reported his third quarter portfolio update on Thursday afternoon. He, or one of his recently hired fund managers Todd Combs or Ted Weschler, reported holding a single new stock in the third quarter: Exxon Mobil Corporation. The size of the holding suggests that it was a Buffett purchase.

There are collectively 43 stocks in Berkshire Hathaway’s portfolio, which is valued at $92.04 billion. Exxon joins a group of other oil and gas stocks in Buffett’s portfolio: National Oilwell Varco Inc. (NOV), Phillips 66 (PSX), Suncor Energy Inc. (SU) and ConocoPhillips (COP). In total, energy stocks comprise 7.9% of its total.

Exxon Mobil Corporation (XOM)