Warren Buffett is increasing his bets on big oil, taking a sizable stake in oil pipeline company Kinder Morgan at the end of 2015.
The energy company’s stock shot up 10% Wednesday morning after Buffett’s buy was revealed in a routine regulatory filing.
Buffett has famously proclaimed in the past, “be fearful when others are greedy and greedy when others are fearful.”
In addition to Kinder Morgan, Buffett has increased his stake in oil refiner Phillips 66, buying nearly $1 billion more stock in recent months. He had previously invested $5 billion in the company.
The investment giant also owns shares in Canadian energy company, Suncor Energy.
Many investors have ditched their oil holdings as the price per barrel has fallen from $100 in the summer of 2014 to barely $30 a barrel today.
The United States and OPEC have kept pumping oil despite the low prices. Ensuring that they maintain market share. That oil still has to go through pipelines, like those owned by Kinder Morgan, and refiners, such as those operated by Phillips 66.