Buffett reveals ConocoPhillips holding

WARREN Buffett's Berkshire Hathaway Inc has become the largest shareholder in oil producer ConocoPhillips and took a stake in manufacturer Eaton Corp in the third quarter as stock markets tumbled.

Berkshire had more than 83 million shares in Houston-based ConocoPhillips as of September 30, compared with about 17.5 million on March 31, the company said on Friday in a regulatory filing.

Buffett also disclosed a reduced holding in Bank of America Corp and more shares of NRG Energy Inc, the second-biggest power producer in Texas. The Standard & Poor's 500 Index dropped 8.9 percent in the three months ended September 30.

Berkshire, which purchased Mid-American Energy Holdings in 2000 and reported record profits last year from selling holdings of PetroChina Co, is betting on a long-term increase in energy demand worldwide. Global oil consumption will increase about 25 percent to 106 million barrels a day by 2030, the International Energy Agency said last week.

''Buffett is thinking decades ahead,'' said Jeff Matthews, author of ''Pilgrimage to Warren Buffett's Omaha'' and founder of hedge fund Ram Partners LP. ''He's thinking about oil production falling and an eventual doubling of worldwide demand as countries like China reach United States levels.''

ConocoPhillips traded as low as US$67.31 a share in the third quarter. It slipped to US$47.39 in New York Stock Exchange composite trading before Berkshire's disclosure.