When $BRK.B (-0,11 %) started during the Corona crisis $OXY (+5,42 %) and $CVX (+3,43 %) many people didn't understand this. Tech was more popular than ever at the time and oil was considered dead. A short time later, it became clear that oil was here to stay. As discussed in the last market review, the energy sector was one of the best investments during the pandemic.
However, this was probably a special boom for fossil fuels that was to remain a one-off. Since the price explosion, the energy sector has been in a very weak trend and is the worst performing sector directly after healthcare (which could therefore also be very interesting at the moment).
In particular, the dynamic has shifted from oil & gas to electricity - which, however, is not counted as part of the energy sector in the classic GICS but as part of the utilities sector. The reason for this is, of course, the expected triumph of artificial intelligence and the associated hunger for energy in data centers. The best-known company in the sector is probably $NEE (+0,43 %)
In any case, Buffet's investments in fossil fuels have not been particularly worthwhile to date, as he may have made a favorable initial entry, but then often bought at unfavorable prices. At the current point in time, the investment case has not yet worked out. It is therefore an interesting question whether Buffet is speculating on something that has not yet been understood by the market or whether it is one of the rare situations in which the good Warren has miscalculated something (think of the disaster around $KHC (+0,65 %) ). At any rate, it is difficult to understand what Buffet was thinking and whether his theory is still intact.
Incidentally, I myself am not invested in either utilities or energy, which I think is a great pity. However, I have not been able to identify any company that is currently really convincing in terms of its figures and can be described as a quality company.
What about you? Do you have any oil, gas or electricity stocks in your portfolio?
(And the < 5% exposure in the World ETF does not count)
