“Berkshire Hathaway Boosts Stake in Occidental Petroleum to $15.4 Billion – What’s Warren Buffett Up To?”

Berkshire Hathaway, led by legendary investor Warren Buffett, has been making waves in the energy sector with its recent purchase of Occidental Petroleum stock. The conglomerate now holds a significant 29% stake in the energy company, valued at an impressive $15.4 billion.

The latest move saw Berkshire acquiring 2.9 million shares of Occidental stock on June 13, 14, and 17 for approximately $173 million. This purchase marks the ninth consecutive business day that Berkshire has been adding to its stake, bringing its total ownership to 255.3 million shares.

Buffett’s strategic investment in Occidental comes at a time when energy stocks are experiencing weakness, allowing Berkshire to capitalize on favorable pricing. The conglomerate paid just under $60 per share for the recent acquisitions, consistently securing shares at $60 or less throughout June. Notably, Berkshire’s average purchase price for its entire stake in Occidental remains below $60 per share, despite the stock peaking at $71 earlier this year.

As a significant shareholder with more than 10% ownership in Occidental, Berkshire is required to disclose any new purchases or sales within two business days. Buffett has clarified that Berkshire does not intend to acquire all of Occidental, indicating a strategic approach to its investment in the company.

In addition to its common stock holdings, Berkshire also holds approximately $8.5 billion of 8% Occidental preferred stock and has warrants to purchase nearly 84 million shares of Occidental common stock at a price just below $60 per share. Occidental, along with Chevron, represents Berkshire’s primary investments in the energy sector, with Buffett expressing confidence in Occidental CEO Vicki Hollub and the company’s carbon capture strategies.

Overall, Berkshire’s continued investment in Occidental Petroleum underscores its confidence in the energy company’s long-term potential and strategic direction. As one of the most prominent investors in the world, Warren Buffett’s moves in the market often serve as a barometer for other investors, signaling optimism in Occidental’s future prospects.

In conclusion, Berkshire Hathaway’s increased stake in Occidental Petroleum reflects a calculated investment strategy that leverages market opportunities and underscores confidence in the energy sector’s potential for growth. Warren Buffett’s continued support for Occidental further solidifies the company’s position as a key player in the evolving energy landscape.