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Buffett - Extended Period of High Oil Prices Not a Sign to Buy Oil Stocks


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http://seekingalpha.com/article/260137-why-buffett-says-high-oil-prices-are-not-a-signal-to-buy-oil-stocks

 

I thought that this was pretty interesting from Buffett.  Concern over a windfall tax is enough to keep him out of oil stocks.

 

I heard the same thing from Berkowitz after he dumped CNQ which was a huge (almost 20% of the fund) position for him at one point.

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I wouldnt own any super majors (they are liquating anyway).

 

First the tax breaks must go and then we will see a windfall, but I think that would take a significant public backlash and prices above $150 for a long period of time. Getting rid of the subsidies so far hasnt worked well. $90 seems like the new $40. I think we will drift below $100 and everyone will chill out, then we will be hit with a super spike if and when the world economies gets past this soft spot.

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I thought that this was pretty interesting from Buffett.  Concern over a windfall tax is enough to keep him out of oil stocks.

I heard the same thing from Berkowitz after he dumped CNQ which was a huge (almost 20% of the fund) position for him at one point.

 

Totally. And Berkowitz has not bought other oil stocks since then.

I remember that Buffett actually visited CNQ before the crash and said that he worried about the cost of production also.

We are small investors however and certain investments will be very profitable even if companies get taxed for oil prices above

current levels (or actually below...).

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