Big Oil Should Give Thanks for Warren Buffett

While reflecting this past Thanksgiving, we detailed a few areas to be thankful for as investors in 2013. This year has been a blessing with the broad markets reaching all-time highs, but Warren Buffett also highlighted the value of large integrated oil companies. Berkshire Hathaway added large positions in both Canada and the United States' biggest oil companies, Suncor (NYSE: SU  ) and ExxonMobil (NYSE: XOM  ) , respectively. While flat production growth and soaring capital expenditures have held back large integrated oil companies, investors should not forget about the billions of dollars being returned to shareholders in dividends and share buybacks. In an equities market that's heating up, value can still be found in oil and gas companies and I am thankful Buffett reminded us of this potential. 

A look forward to 2014
The market stormed out to huge gains across 2013, leaving investors on the sidelines burned. However, opportunistic investors can still find huge winners. The Motley Fool's chief investment officer has just hand-picked one such opportunity in our new report: "The Motley Fool's Top Stock for 2014." To find out which stock it is and read our in-depth report, simply click here. It's free!

This segment is from Thursday's edition of "Digging for Value," in which sector analysts Joel South and Taylor Muckerman discuss energy & materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors @TMFEnergy.

 


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