The Real Reason Warren Buffett Loves Oil And Gas

Since the 1980s, Warren Buffett has become a lender of last resort for companies. The vast cash pile he presides over at Berkshire Hathaway puts the conglomerate in the perfect position to play this role.

Berkshire's clean balance sheet means it can move quickly whenever an opportunity presents itself. It's helped by the fact Buffett is the major decision-maker at the corporation, removing the need for lengthy consultations or meetings to decide whether or not to invest.

Q2 2023 hedge fund letters, conferences and more

Berkshire's Qualities as a Lender

Buffett started lending Berkshire's money in this way in the 1980s, buying preference shares in the likes of USAir and Solomon Brothers.

In both...