October 19, 2007
Warren Buffett takes his profits from PetroChina
After years of pressure, Warren Buffett has finally sold out of PetroChina, the listed company 88 per cent owned by China National Petroleum Corporation. He confirmed the news on Fox on Thursday, although traders had seen it coming.
Like Fidelity when it cut its stake, Mr Buffett says the decision has nothing to do with the disinvestment campaign by groups protesting at CNPC’s presence in Sudan. (A more positive view of that presence here.)
There is no reason to doubt him. Selling now could be a smart move irrespective of politics. PetroChina is an impressive company with good prospects, but the huge gains in Chinese shares - PetroChina will become one when it lists in Shanghai, probably next month - are beginning to look unsustainable.
And Mr Buffett has already made a terrific return on his investment.
