“Warren Buffett Makes Bold Move: Buys $105.55 Million of Occidental Petroleum Shares”

Warren Buffett’s Berkshire Hathaway has once again made headlines with its recent purchase of Occidental Petroleum (OXY) stock. The renowned investor first bought shares of OXY in the third quarter of 2019, sold out in Q2 2020, but has now re-entered the energy company with a significant stake.

Berkshire’s latest move involved a $105.55 million purchase of 1.75 million shares of OXY between June 10 and June 12, at average prices ranging from $60.25 to $60.42. This acquisition brings Berkshire’s total ownership of OXY to 252.33 million shares, representing a 28.46% stake in the company, along with 84,897 shares of Series A preferred stock.

This recent purchase is not an isolated event, as Buffett has been steadily increasing his position in OXY. In early June, Berkshire acquired an additional 2.56 million shares worth $153.29 million. These consistent buys have solidified Berkshire as the largest shareholder of OXY, with other major shareholders including Dodge & Cox and Vanguard.

Buffett’s cost basis for OXY is estimated to be in the low to mid $50 range, with most of his purchases below $60. Despite his significant stake in the company, Buffett has indicated that he is not looking to acquire the entire company. Instead, his investment seems to be a vote of confidence in CEO Vicki Hollub and the potential of domestic oil production.

In Berkshire’s 2023 shareholder letter, Buffett praised Hollub’s ability to extract oil from rock, highlighting her talent and its value to shareholders and the country. This strategic investment aligns with Buffett’s long-term investment philosophy and his belief in the fundamental strength of the companies he invests in.

As an insider owning more than 10% of OXY shares, Berkshire’s continued purchases signal confidence in the company’s future prospects. Buffett’s strategic moves in the energy sector will undoubtedly be closely watched by investors and analysts alike, as they seek to understand the rationale behind his investment decisions.

In conclusion, Warren Buffett’s latest purchase of OXY shares underscores his confidence in the company’s potential and his strategic approach to investing in the energy sector. With Berkshire Hathaway’s significant stake in OXY, all eyes will be on how this investment plays out in the coming months and years.