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Time to buy any Canadian Warren Buffett Stock?



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<P CLASS = "cloth fabric-atom-text Mb (1.0em) Mb (0) – see Mt (0.8em) – see" type = "text" content = "The latest 13F filing, it has been found that Warren Buffett was uploaded to & NBSP;Suncor Energy (TSX: SU) (NYSE: SU) shares, only a few years after he made a similar rate to just throw in the towel on the name, prompting concern that the proposal price is dried in a patient Alberta oil industry ". data reactid = «22"> The latest 13F filing, it has been found that Warren Buffett is loaded on Suncor Energy (TSX: SU) (NYSE: SU) shares, only a few years after he made a similar rate to just throw in the towel on the name, prompting concern that the offer price in the dried patient Alberta oil industry.

Now that Buffett is back with another huge threat, many Canadian energy pessimists are now scratching their heads why Oracle of Omaha returns in the industry without any real catalysts on the horizon.

As you know, since Buffett & # 39 investor is incredibly patient. Even at an advanced age of 88, Buffett seems more than willing to sit on his investment Suncor for years at a time, with a few bulls who see any help for Canadian heavy oil mess.

Buffett received a great price, and if you have done in my earlier pieces, when I called Suncor «absolute steal", you would get a base price similar to Buffett's. Shares, as captured on recovery optimism on his bold bet, but even if the rally fizzles out, Buffett is probably not in a hurry to him one last time. At the same time, Buffett will collect stocky growth dividend yield of about 4% (currently 3.3% as of this writing) while it waits for Canadian heavy oil saturation sort itself in time.

Suncor management team will do everything possible to ease the volatility faced in the ugly Canadian energy – whether it be through generous dividend increase was made possible by the company's pristine balance sheet and stable cash flow generative integrated companies or by increasing the long -term value on fragile competitors scooped a massive discount to their intrinsic value.

I believe that Buffett believes Suncor with a & # 39 is a win-win proposition, no matter go, oil prices fluctuate. Although Suncor undoubtedly benefit deeply from the high oil prices, as the company may include approaches to different "expectation" projects, the environment in which will not WCS prices remain depressed at the expense of the investment thesis it is suggested that you get Suncor at about $ 40.

There's a fat dividend with room to grow, but most importantly, a strong balance sheet allows Suncor to catch the other younger manufacturer, as they fall gradually into insolvency. Think about what transactions Suncor received when he scooped the Canadian tar sands oil accident a few years ago. It was a deal that led huge value for shareholders, and although most of the assets will be land for an indefinite period of time, it is obvious that a strong financial position has allowed it to pay a dime to get a dollar.

<H2 class = "fabric-atom-canvas text MB (1.0em) MB (0) – see Matt (0.8em) – see" type = "text" content = "silly takeaway"Data reactid =" 29 ">silly takeaway

Suncor more than able to maintain and develop their dividend through their integrated operations and a strong balance sheet. Buffett does not know the prices are heading further into the WCS direction, but he obviously loves the long-term risk / reward trade-off has to be.

Of course, there can be no catalysts for sending the stock the pole vault in the short term, but if you like Buffett and could care less about the short-term moves, Suncor looks shiny bet here and now. You get a rich dividend and massive growth potential, if ever the gap between WCS and WTI crude oil prices narrows. It seems like a lot to me.

Stay Hungry. Stay Foolish.

<P class = "fabric-atom-canvas text MB (1.0em) MB (0) – see Matt (0.8em) – see" type = "text" content = "more reading"Data-reactid =" 33 ">more reading

<P class = "fabric-atom-canvas text MB (1.0em) MB (0) – see Matt (0.8em) – see" type = "text" content = "fool contributor joey Frenette It has no positions in any of the above stocks."Data-reactid =" 41 ">Fool contributor Joe Frenette has no positions in any stocks mentioned.

<P class = "fabric-atom-canvas text MB (1.0em) MB (0) – see Matt (0.8em) – see" type = "text" content = "The aim of Motley Fool to & # 39; is to help the world to invest, better & NBSP.Click Here Now& NBSP; for your free subscription to & NBSP;inventory, The Motley Fool free newsletter Canadian investment. Packed with stock ideas and investment advice is essential reading for anyone who wants to build and develop their wealth in the coming years. Motley Fool Canada 2019"Data-reactid =" 42 ">The aim of Motley Fool to & # 39; is to help the world to invest, the better. Click Here Now for free subscription inventory, The Motley Fool free newsletter Canadian investment. Packed with stock ideas and investment advice is essential reading for anyone who wants to build and develop their wealth in the coming years. Motley Fool Canada 2019

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