With oil prices plummeting and a cloud of uncertainty hanging over the industry, you can be excused to thinking it would take a madman to invest $4.98 billion into Phillips 66 (NYSE:PSX). By September 10th 2015, Warren Buffett’s Berkshire Hathaway did just that. In this case there is a strategy in the madness.

This mark of confidence by the shrewd and highly successful billionaire, that Warren Buffett is, has drawn a lot of attention to Phillips 66 stock. Consequently, on September 10th, the share price spiked from $80.17 to $81.96 in less than 4 hours.

Let’s delve into the numbers to understand why Phillips 66 stock is such an attractive investment opportunity. Phillips 66’ dividend yield currently sits at 2.8% with a price to earnings ratio of 10.2. On the other hand, the S&P 500 has a dividend yield of 1.9% and a price to earnings ratio of 19.9. In brief, Philips 66 is having the competition for breakfast, lunch, and dinner. It is such healthy returns which is getting Warren Buffett and other investors excited.

Phillips 66 stock price has gained 100%+ in a time span of a little bit more than 3 years. As it grows, the share price has remained stable for relatively long periods of time. This is one of the ways investors are able to easily measure a corporation’s stability.

Source: Phillips stock price data by amigobulls.com

You see, Phillips 66 is unique in the sense that 75% of its revenue comes from refining oil and creating oil-based chemical products. These are two ‘evergreen’ processes which are critical for industries the world over. This makes Phillips 66  stock a good one to hold until retirement or pass on to loved ones.