Today, we look at one of the safest ways to play the new strength in crude oil. We take a stock tip from the world's best investor, Warren Buffett.
Several years ago, Buffett made waves with his purchase of ConocoPhillips (COP), one of the world's largest diversified energy companies. Buffett rarely buys shares in commodity-producing businesses... They simply don't have the stability and pricing power Coca-Cola or Procter & Gamble have. He just thought COP was safe and cheap.
Like all energy stocks, COP suffered a huge fall in late 2008. This was when investors were selling everything and the kitchen sink in order to raise cash. COP struck a bottom around $35 per share in March and drifted around $45 this summer. Just this month, it broke out to $50.
Despite the recent gains, COP is still cheap. Shares go for around five times cash flow and offer a 3.8% dividend yield... which is why Buffett owns more than 64 million shares of the company. If you're looking to safely get long oil, this is one of the best "guru approved" vehicles around.
Several years ago, Buffett made waves with his purchase of ConocoPhillips (COP), one of the world's largest diversified energy companies. Buffett rarely buys shares in commodity-producing businesses... They simply don't have the stability and pricing power Coca-Cola or Procter & Gamble have. He just thought COP was safe and cheap.
Like all energy stocks, COP suffered a huge fall in late 2008. This was when investors were selling everything and the kitchen sink in order to raise cash. COP struck a bottom around $35 per share in March and drifted around $45 this summer. Just this month, it broke out to $50.
Despite the recent gains, COP is still cheap. Shares go for around five times cash flow and offer a 3.8% dividend yield... which is why Buffett owns more than 64 million shares of the company. If you're looking to safely get long oil, this is one of the best "guru approved" vehicles around.
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