Phillips 66 is one of Warren Buffett’s 20 highest dividend stocks (7th highest). Price declines create opportunities for patient investors.

In fact, all the five U.S. leading refining companies’ shares have shown a decline in the last four weeks between -6.1% for Valero Energy (VLO) and -20.2% for HollyFrontier (HFC).

Moreover, all the five companies have recorded a negative return (including dividends) in the last 52 weeks.

According to Bloomberg, Buffett’s through Berkshire Hathaway (BRK-A) has been steadily adding to his holdings since August 2015, when he first reported a $4.5 billion stake in the company.

…Buffett’s company now owns a 14 percent stake in the company, the sixth-largest holding in its portfolio. This year, he has spent about $1.08 billion on 14.1 million shares at an average price of $77.13, according to regulatory filings.

His total stake in the company is worth $5.94 billion based on May 16 closing price of $78.68. Many investors follow Mr. Buffett due to his impressive long time record of success in picking value stocks.

In my view, Mr. Buffett’s bet on Phillips 66 makes much sense. Buffett has stated several times he looks to buy great businesses when their stock prices decline.

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