Warren Buffett’s decision to more than quadruple his holdings in ConocoPhillips (COP) at the time when oil prices were near their peak shows that even a seasoned pro can make a rookie mistake. To his credit, Buffett fessed up to his blunder, arguing in his 2008 annual shareholder letter that the “terrible timing of my purchase has cost Berkshire several billion dollars.”
Interestingly, Warren Buffett also predicted that the odds were “good” that oil prices would sell far higher in the future than their current $40 to $50 level.
Fast forward to today and oil prices recently changed hands on the NYMEX at $47.33. The U.S. Energy Information Administration is expecting prices to average $54 in 2017 and $57 in 2018, so it seems that the Oracle of Omaha's prediction was off.
Buffett, though, hasn't soured on the sector entirely and is now the largest shareholder in Philipps 66 (PSX).
Source: InvestorPlace
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