Richard Rainwater — the commodities guru who sold his oil holdings in May when the price of crude hit $129 a barrel and gasoline passed $4 gallon — is back to betting big on oil.
A few weeks ago, when the price of oil neared $90, the billionaire investor decided it was time to reinvest and bought Exxon, ConocoPhillips, Pioneer Natural Resources, BP, and Statoil.
Despite the slowing world economy, he's convinced that oil prices will continue to rise.
"I reinvested back in the oil business, and it's worked out really well for me," Rainwater says, adding that he's already making money on his recent purchases.
"I think we'll have a run on raw materials of all kinds because we've taught people all around the world how to play capitalism," Rainwater says, "and all those people want to live like Americans."
Rainwater made his reputation and fortune by greatly multiplying the Texas oil fortune of the Bass brothers of Fort Worth.
Rainwater's recent decision to sell was driven by his belief that oil prices had soared too high too quickly, not by a perception that the bull oil market had ended.
"I missed the very top by a lot," Rainwater told CNN Money.
"That's okay. I'm always early. I sold after I got my first inclination that we had a problem with the demand side in America."
Not everyone agrees with Rainwater's opinion, especially as oil prices continue to fall well below their July high of $147.
"People are realizing that the decline in demand is probably not just a U.S. phenomenon," David Johnson, an oil analyst with Macquarie Securities in Hong Kong told AFP.
"I think people are just becoming a little bit more bearish over their outlook for oil consumption over the next 12 to 15 months."
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