market folly

Warren Buffett this morning on Bloomberg TV said that his Berkshire Hathaway has invested in Phillips 66 (PSX).  We've also posted up a summary of Buffett's lengthy interview.

PSX was spun-off from ConocoPhillips (COP) on May 1st and Buffett said one of his portfolio managers (either Todd Combs or Ted Weschler) have reduced holdings in COP and bought into the refining operations ~ PSX.

Owners of COP shares received 1 share of PSX for every 2 shares of COP owned as of April 16th.  Berkshire owned just over 29 million COP shares as of March 31st (before the spin-off).  Assuming that number, that would mean they received just over 14.5 million shares of PSX in the spin.

But it sounds like they've gone a step further by selling some of their post-spin COP shares and adding to their PSX stake.

For more from Berkshire Hathaway's leading man, head to notes from Buffett's meeting with MBA students.