Billionaire investor Warren Buffett said Monday that his firm Berkshire Hathaway divested from $3.7 billion in ExxonMobil stock to free up cash for other investments.
Buffett told CNBC that ExxonMobil is a “wonderful company” although weak oil prices and slumping demand are putting financial pressure on oil and gas firms.
“Its current earning power, obviously, is diminished significantly from where it was a year ago, as is true with all oil companies. But Exxon Mobil has been one of the great investments of all time,” Buffett said.
Buffett confirmed that Nebraska-based Berkshire sold all of its shares in the company during the fourth quarter.
Berskhire held 41.1 million shares in ExxonMobil worth about $3.7 billion as of September 2014 , according to an SEC filing.
“We thought we might have other uses for the money,” Buffett said.