Berkshire Hathaway Increases Stake in Phillips 66 by $1 Billion in 2016

In SEC Form 4 filings, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has disclosed that in January and early February 2016, it has added to its stake in Phillips 66 (NYSE: PSX) at prices of $74 – $80 per share.   This additional investment of approximately $1.0 billion ($634 million in early January and $367 million in late January and early February) has resulted in Berkshire owning 74.5 million shares of Phillips 66, or 14.1 percent of its outstanding shares.  Berkshire’s stake in Phillips 66, at its closing price of $75.44 on February 9, is valued at $5.6 billion and is its sixth largest stock holding.

Since it holds over 10 percent of the shares of Phillips 66, Berkshire is required to report changes to its position on SEC Form 4.  Berkshire first revealed owning over 10 percent of Phillips 66 stock in August, 2015.  This year’s purchases are the first Berkshire has made since September.  It is likely that this additional investment in Phillips 66 was made by Warren Buffett’s portfolio managers, Todd Combs and/or Ted Weschler.

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About the Author

Dr. David Kass
David I Kass Clinical Associate Professor, Department of Finance Ph.D., Harvard University Robert H. Smith School of Business 4412 Van Munching Hall University of Maryland College Park, MD 20742-1815 Phone: 301-405-9683 Email: dkass@rhsmith.umd.edu (link sends e-mail) Dr. David Kass has published articles in corporate finance, industrial organization, and health economics. He currently teaches Advanced Financial Management and Business Finance, and is the Faculty Champion for the Accelerated Finance Fellows. Prior to joining the faculty of the Smith School in 2004, he held senior positions with the Federal Government (Federal Trade Commission, General Accounting Office, Department of Defense, and the Bureau of Economic Analysis). Dr. Kass has recently appeared on Bloomberg TV, CNBC, PBS Nightly Business Report, Maryland Public Television, Business News Network TV (Canada), Fox TV, American Public Media's Marketplace Radio, and WYPR Radio (Baltimore), and has been quoted on numerous occasions by Bloomberg News and The Wall Street Journal, where he has primarily discussed Warren Buffett and Berkshire Hathaway. He has also launched a Smith School “Warren Buffett” blog. Dr. Kass has accompanied MBA students on trips to Omaha for private meetings with Warren Buffett, and Finance Fellows to Berkshire Hathaway’s annual meetings. He is an officer of the Harvard Business School Club of Washington, DC, and is a member of the investment and budget committees of a local nonprofit organization. Dr. Kass received a Smith School “Top 15% Teaching Award” for the 2009-2010 academic year.