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was very big for Berkshire and that was PetroChina a lot of people interested in your purchase and subsequent sale of PetroChina is a controversial stock for our viewers who aren't familiar with it because the parent company China National Petroleum had some dealings with the Sudanese government that of course the Bush administration has said is responsible in part for the genocide in Darfur I watched in May at your annual meeting where shareholders came up some of them very unhappy and you to tie vest you disagreed you took a shareholder vote most shareholders agree with you you did not divest that was May now since sep tember you've been selling have you sold your entire stake of PetroChina yeah we we've sold it but we saw the based on price it had nothing that I mean it I think at the time the annual meeting it was around in terms of the American stock it was around 110 and I think it's more than doubles and said unfortunately I saw a little too soon but it was it was a hundred percent of decision based on valuation when we bought PetroChina the whole company was selling for 35 billion if you take the number of shares and multiplied by the price when we sold it it was a varying prices but it was at about eight times that price about about 275 not I'm sorry it was more the original price was 20 in terms of the u.s.
we sold it from 160 to 200 or something like a nice tidy profit we made it we made about three and a half billion dollars on 500 million dollar investment as it turned out I still sold away to school since I sold it they must have shot a got off and said my word so it's time to let it go up oh yeah you've left money on the table lot of money dummy I mean is exactly right matter would say that to Charlie when Charlie would say you've done it again but you can't keep always trying for the average person who's maybe never bought a stock before what's your advice about that you can't constantly sit there and wait and say oh it's going to go higher technical high we don't even think about that what we think about is how much is it selling for how much do we think it's worth when we bought it at 35 billion effectively I felt the company was probably worth at least a hundred billion how did it come to you tension how do you find a stuff like PetroChina they sit there in my office and I read an annual report which fortunately was in English and it described a very good company and told about the oil reserves full about the refining to all about the chemicals everything else and i SAT there and Reddick and I thought to myself this company is worth about a hundred million now I didn't look at the price first I look at the business first try and figure out what it's worth because if I look at the price first I'll get influenced by that so I look at that look at the company first I try to value it then I look at the price and if the price is way less than what I've just valuated that I'm going to buy it and how do you value it well I that's that's the trick but it's it's essentially what i would pay for the whole business if i could buy it and when we sold the company's stock it was valued will say it look 17 probably 250 to 275 billion and we thought that was a fair price now oil have gone up from thirty dollars a barrel or $75 barrel now it's up to even further but today i bought yesterday at anyway I believe petrochina is the second most highly valued company in the world higher than ye next ExxonMobil next section have you sold the entire stake yeah I have I wish I hadn't but I have a tough one well it we saw all over paris i sold unless ya at the time the way down a lot we buy it back would you ever buy or sell stock based on political pressure or sort of some people thing upset about Darfur had nothing to do with why you sold it off the Chinese government owns eighty-eight percent of PetroChina they also own control of 29 out of 30 largest companies in China the Chinese government is the one that has a position in relation to the Sudan and they have it if you own any one of the 30 largest companies in publicly traded companies in China you will have the Chinese government is your majority partner and the question is are you responsible for their actions you're going to China next week for a ribbon-cutting ceremony abilities ilysm that's what they use this you're pretty good at cutting with I've got they used to it are you looking at other companies in China I don't look based know the answer is pretty much snow but I don't look based on on countries or that sort of thing I just I just read every report I can and I try and figure out whether something is cheap how would you find a report like petrochina four years ago this is not a name that maybe that a lot of people with other guys read playboy ya got me kinda reports are there anything it was a great show tomorrow this is a great centerville actually when I PetroChina and and that's that's what I do I mean that's my job is to allocate capital and the way i allocate capitals by looking at the opportunities for using capital what's your best investment of all time the best stock you ever
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