Published: Thu, February 15, 2018
Finance | By Loren Pratt

Phillips 66 OKs $3.3 Bln Share Buyback from Berkshire Hathaway

Phillips 66 OKs $3.3 Bln Share Buyback from Berkshire Hathaway

Investors keep track of the portfolio's changes to figure out which stocks the Oracle of Omaha is willing to put his money into.

Over the past few years, Warren Buffet's Berkshire Hathaway has turned from an Apple skeptic to rather bullish on the company. Other healthcare stocks fell on that news. Before last spring, Berkshire held more than 80 million IBM shares.

Shares of the drugmaker, Israel's ailing Teva Pharmaceutical Industries Ltd., surged the most in two months after Berkshire disclosed in a filing it had bought about $350 million worth of shares. Even though Apple has performed quite well over the past couple years, Buffett and his team clearly think it still represents a compelling value.

Apple shares closed in the green in the US Wednesday trading session, as it emerged Warren Buffet's Berkshire Hathaway purchased more of the tech stock.

While previous year was another tough one for the energy sector, Phillips 66 generated $3.6 billion in cash flow, up from $3 billion in 2016.

The stake in Bank of New York Mellon Corp. climbed 21 per cent to 60.8 million shares The holding in Monsanto Co. rose 32 per cent to 11.7 million shares The holding in American Airlines Group Inc. was lowered by 1 million shares to 46 million. (TAP) - The Denver-based brewer said its fourth-quarter net income was $588.8 million, or $2.72 per share.

Teva and Berkshire declined to comment. The Israeli drugmaker took on a mountain of loans in 2016 to bulk up its copycat medicines business as profit margins declined in the US, the world's most lucrative market for pharmaceutical companies.

Berkshire had been gradually unloading its IBM (NYSE:IBM) stake for some time. It's stake is now worth $165.3 million, according to analysis by Bloomberg.

With IBM, Berkshire reported holding a little over 2 million shares.

Berkshire Hathaway Inc. (BRK-B)'s RSI (Relative strength index) is at 42, its ATR (Average True Range) value is 5.09, while its Beta factor was calculated at 0.

Teva, the world's No. 1 generic drugmaker, this week detailed a two-year timeline for turning its business around after being hit by competition in its core generic business, the loss of patent protection on its multiple sclerosis drug Copaxone and a more than US$30b debt load from its acquisition of Allergan's generics business.

Berkshire unloaded 10 million shares of General Motors, which reduced its stake by 16%.

Return on Investment measures the amount of return on an investment relative to the investment's cost.

Berkshire also almost completed its year-long exit from International Business Machines Corporation (IBM) selling more than 94 percent of what was left from an investment Mr. Buffett has admitted was not among his best. Well, with inflation fears spiking in recent weeks, and sending stocks tumbling, oil refiner Phillips 66 (NYSE: PSX) chose to take Buffett's advice to heart and buy back a big chunk of its own stock.

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