Despite the huge price decline in oil, Warren Buffet’s firm Berkshire Hathaway has spent up to $1 billion in Phillip 66’s stock.

Buffett is notorious for buying stocks in a down market though he is not a big oil investor. According to share tracker LionShare, Phillips 66 is the only oil company in his top 50 holdings and is Berkshire’s sixth largest holding.

http://houstonenergyinsider.com/?p=4852

This is not rocket science. Warren Buffet bought a well run company (happens to be an oil company) that has had it's stock price hammered by the low price of oil. Oil will not be less than $30 a barrel for very long. When the price of a barrel of oil goes up, the stock price of Phillips 66 will also increase. Berkshire Hathaway makes money, Warren Burret makes money, and anyone else that buys Phillip's stock while it is low and holds it for a while will also make money.