While many contrarian investors are predicting a correction in the red-hot energy sector soon, the legendary Warren Buffett laid a bet that the streak will go on.

Buffett's holding company,

Berkshire Hathaway

(BRKA)

, revealed a 17.9 million-share stake in

ConocoPhillips

(COP) - Get Report

in its quarterly regulatory filing on Monday. The investment comes from the world's preeminent value investor, even after shares of the oil company have rocketed 13% so far this year, after adding a whopping 52% last year.

"I doubt that

Buffett thinks ConocoPhillips is a screamingly cheap company," says Glenn Tongue, managing partner with T2 Partners. "He probably thinks it's a predictable asset-rich company that will grow in value far in excess of what his costs of financing are. That rationale goes along with some of Berkshire's previous investments like

Wal-Mart

(WMT) - Get Report

and

Wells Fargo

(WFC) - Get Report

."

Berkshire also disclosed new positions in

General Electric

(GE) - Get Report

and

United Parcel Service

(UPS) - Get Report

, both of which fit Buffett's philosophy of buying stable businesses that are industry leaders.

The ConocoPhillips stake also fits Buffett's game plan. He has experience in the energy sector, having made high returns by investing in

PetroChina

(PTR) - Get Report

, and he has long said publicly that he views energy as an attractive area.

Still, the move seems bound to raise some eyebrows, particularly after Buffett's longtime sidekick, Charles Munger, made some controversial comments at the recent

Wesco Financial

(WSC) - Get Report

conference. He suggested that future generations will curse present-day Americans for consuming fossil fuels at such a high rate, since the supply of oil will be greatly diminished.

"Those were pretty strong words," says Tongue's partner at T2 Capital, Whitney Tilson. "You rarely see Buffett and Munger investing in something that's just had its biggest run in history in the last five years,

like the oil and gas market. One reason may be that they believe oil prices are going to be high, if not higher, for a long time."

Another reason for the investment, says Tilson, could be an attempt to hedge against Berkshire's other holdings that are heavily dependent on consumer spending, like

Coca-Cola

(KO) - Get Report

and

Nike

(NKE) - Get Report

. If those positions were hurt as consumers struggle under the weight of rising fuel prices, investments in the energy market could offset those losses.

Berkshire recently announced plans to buy 80% of Israel's

Iscar Metalworking

. At its May 6 annual meeting, Buffett said he would like to cut Berkshire's cash stake, which recently totaled $42.86 billion, to about $10 billion.

"Conoco makes up a very small percentage of Berkshire's overall portfolio, so people probably shouldn't read too much into it," says Tongue.