Remember back during the financial crisis when every time there was a moment of panic (and there were plenty of those) President Obama would say, "I spoke to Warren Buffett on the phone this morning ..." Yep, there's no better way to calm investors than saying Buffett has your back, but it doesn't always require a crisis. For a slow-growing company—which also happens to be among the world's biggest—that has, for some time, failed to impress investors with lack of growth in the precious commodity stockpile, it's nice to have Warren step up and buy a big chunk of shares.
Exxon Mobil received the Warren Buffet seal of approval on Thursday when Buffett's Berkshire Hathaway took a $3.7 billion stake in the oil company. Buffet jumped on the stock after prices fell to $86 lows in the second and third quarter. This buy was revealed in the same Thursday SEC filing as Berkshire's sale of ConocoPhillips shares—44 percent of its holding. Buffett had previously apologized to shareholders on his ConocoPhillips position, saying that he has no special insight into the future movements of oil prices.
"Exxon is a good flight-to-quality stock. ... The stock has also lagged the market in the last three to five years. That makes it a typical Warren Buffett holding."—Fadel Gheit, Oppenheimer oil analyst.