Warren Buffett Sees Great Combo in Exxon Mobil, Asia
NEW YORK ( TheStreet) -- When Warren Buffett buys a stock, the price naturally rises.
In early-morning action, on the news that "The Oracle of Omaha" recently purchased 40 million shares of Exxon Mobil
At present, Buffett, considered by many to be the best investor ever, has major positions in Suncor Energy
Buffett also did well investing in PetroChina
The Asia angle is starting to play more into Buffett's investing, and has certainly factored into his Exxon Mobile buy. Recent investments in Lubrizoil, Heinz, ConocoPhillips, Suncor Energy, Burlington Northern Sante Fe Railways and others will all profit from growth in Asia. In 2011, he made his first trip to India, and, as reported by the BBC News Business , "Mr. Buffett has been bullish on Asia's growth and has invested in companies in Korea, China and India."
According to a earlier report by the U.S. Energy Information Agency, about two-thirds of the growth in demand for energy in the future will be from emerging markets, primarily in Asia. As detailed here on TheStreet, the International Energy Agency, in its World Energy Outlook , projects that transportation and chemicals will be the two industries consuming the most fuel, led by Asian nations. Exxon Mobil is ideally situated to serve both of those markets, with particular recognition of the importance and potential of the markets in China, India and other countries in Asia.
In a speech to the Asia Society Global Forum in June, Rex Tillerson, CEO of Exxon Mobil, stated that "As North American oil production increases and the need for imports fall, more of the oil produced in the Middle East and elsewhere is available to serve Asian growth. This is important because between now and 2040, Asian oil demand will likely grow by about 15 million barrels a day -- with the share of demand served by imports into the region rising to around 80%. So the rebalancing of supplies, made possible by increased North American production, is providing more stability and security around the globe."