“Warren Buffett’s Occidental Petroleum Stock Reaches Bargain Levels – Is Now the Time to Buy?”

Occidental Petroleum stock is catching the attention of Warren Buffett once again as energy stocks experience a recent drop. Berkshire Hathaway, the largest shareholder in Occidental with a 28% stake, now holds approximately 248 million shares valued at around $15 billion. Buffett typically prefers to pay no more than $60 per share for Occidental, and with the stock currently trading below that threshold at $59.64, it may present a buying opportunity for the legendary investor.

The stock is trading near its lowest levels since early February when Berkshire Hathaway made its most recent purchases, acquiring over four million shares at an average price of about $57. Buffett has expressed admiration for Occidental’s CEO, Vicki Hollub, and the company’s innovative carbon-capture strategies. Additionally, Berkshire Hathaway and Occidental have collaborated on a project to produce lithium in California.

As Berkshire Hathaway owns more than 10% of Occidental, any buying or selling activity must be reported within two business days. Investors will be monitoring for a potential new form 4 filing by Berkshire Hathaway in the coming week, indicating a fresh purchase of Occidental stock.

Despite Occidental shares remaining relatively flat this year, lagging behind many peers and the Energy Select Sector SPDR exchange-traded fund, the company’s stock has faced pressure due to declining oil prices. Occidental, being more leveraged than its competitors, tends to benefit when energy prices are strong and suffer when prices are weak.

Occidental has also refrained from participating in the significant energy deals that have taken place over the past year. With a market value of $53 billion, the company stands as one of the largest U.S. energy firms. Buffett has clarified that Berkshire Hathaway has no intentions of making an offer to acquire all of Occidental, which may have tempered investor enthusiasm for the stock.

In conclusion, Occidental Petroleum’s stock is back in focus for Warren Buffett as it trades below his preferred price range. The company’s strategic initiatives and partnership with Berkshire Hathaway highlight its potential for long-term growth. Investors will be closely monitoring any updates from Berkshire Hathaway regarding its holdings in Occidental.