Warren Buffet, the CEO of Berkshire Hathaway Inc.is a prominent investor and the third wealthiest person on the globe. Warren started investing at a very tender age. At the age of 13, he was already doing very well in the stock markets. He began studying about investments at the age of 7 years. Since then he has grown to be a great business person with a massive wealth of over $80 billion. The Berkshire Hathaway Inc. has invested in numerous parts of the globe and has invested in different industries. As long as an industry has lucrative opportunities Warren Buffett is always there. His primary model of investing includes looking for undervalued stocks and investing heavily for a long term.
One of the areas where Warren Buffet has invested heavily is in the oil and gas industry. Warren Buffett has invested in oil stocks because he likes its method of valuation. In 1957, while still a young investor, he profiled a company known as oil and Gas Property Management. At the time, the company was worth about $5 million. However, he could see more potential in the company than anyone else. The company was funded and bought more properties in the oil industry.
Warren Buffet analysed the business and saw huge potential in this firm. He calculated the value of the company and the oil and gas reserves and saw them valued at over $150 million. This meant that if there were to be a little increase in the value of oil, the company would generate huge amounts of money. Warren Buffett decided it is better to invest in Oil and gas property Management since there was high chances of making huge income. He followed lessons he had learnt from Benjamin Graham of buying undervalued stocks and waiting for them to go up.