Buffett's new strategy: Buy High, Sell Low?

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October 13, 2009 – Comments (2) | RELATED TICKERS: COP , XOM , BP 

I'm talking about Conoco Phillips (COP). Anybody following the activity of Warren Buffett's company, Berkshire Hathaway, on COP must admit that Buffett does not seem like himself lately. The legendary investor who champions value investing bought COP at the very top, during the oil spike of 2008. His average cost is probably around $78. Realizing and admitting his mistake in his annual report, Buffett began selling his stake in COP to harvest capital loss -- only to find that he sold at the bottom, just before one of the biggest rallies ever. He sold a significant chunk of his COP shares, probably around $43. Capital loss benefits cannot justify locking in a 44% loss for his shareholders. More importantly, has he ditched his favorite buy-and-hold-forever strategy?

If Buffett happens to find this Motley fool blog -- okay, if I was so lucky to meet him, I would like to ask a simple question: how will you explain this in your next annual report? Just another mistake, we sold at the bottom?