You’ve probably read that Warren Buffet invested $5 billion in Goldman Sachs and $3 billion in GE recently. However, both of those were invested in preferred stocks. They are more like loans with an interest of 10% rather than investment. In September, Buffet’s group bought Constellation Energy (CEG) for $4.7 billion or $26.50 per share. Constellation Energy Group, Inc. supplies energy products and services to wholesale customers, and retail commercial, industrial, and governmental customers in North America. CEG is currently trading at$23.57, a discount of 11% to what Buffet paid.

Tom Forester, who manages the best performing large Cap fund of 2008, the Forester Value Fund (FVALX), also likes energy companies now that the oil has dropped so much lately. According to this MarketWatch article, he started to build position in Valero Energy Corp (VLO), which gives some reassurance to our own pick of Valero eventhough we paid slightly higher than what he paid.