Warren Buffett buys stake in Calgary's Suncor - Action News
Home WebMail Saturday, November 23, 2024, 11:59 AM | Calgary | -11.9°C | Regions Advertise Login | Our platform is in maintenance mode. Some URLs may not be available. |
Business

Warren Buffett buys stake in Calgary's Suncor

Warren Buffett has bought into the Alberta oil sands with a stake in Suncor Energy Inc., according to a Securities Exchange Commission filing released today.
The Suncor oilsands facility seen from a helicopter near Fort McMurray, Alta. Warren Buffett has bought into the Calgary-based company. (Jeff McIntosh/Canadian Press)

Warren Buffett has bought into the Alberta oilsands with a stake inSuncor Energy Inc., according to a Securities Exchange Commission filing released today.

Buffetts Berkshire Hathaway Holdings owned 17.8 million Suncor shares on June 30, a stake valued at more than $500 million in the Calgary-based heavy-oil producer.

The same regulatory filing revealed Buffett made a larger investment in General Motors and added to its holdings in U.S. Bancorp and Wells Fargo & Co.

Suncor stock rose$1.18 cents to $34.97 in trading today.

Shares of companies often rise after Berkshire discloses sizeable new investments because investors try to copy Buffett, who has an enviable record as a successful investor.

Buffett, 82, is legendary for his ability to pick value stocks and apply common sense to the markets.

Buying into Suncor puts him into the midst of the debate over the rapid pace of oilsands production, which has been questioned by environmentalists as harmful to the environment, and over the Keystone pipeline which would take Alberta oil south to the U.S.

The company derives most of its current production from Alberta's oilsands andplans to expand there. It also owns several refineries to process its crude.

Analysts say Suncor isnt waiting on a decision over controversial pipelines such asKeystoneto transport its oil as it has booked pipeline and rail capacity for the next several years.