Warren Buffett’s Berkshire Hathaway has been making significant moves in the energy sector, particularly with Houston-based oil and gas producer Occidental Petroleum. Over the past nine trading sessions, Berkshire Hathaway has been gradually increasing its stake in Occidental Petroleum, bringing it to almost 29% of the company.

The Omaha, Nebraska-based conglomerate has been steadily purchasing Occidental shares every trading day since June 5th, totaling an additional 7.3 million shares. These purchases, with prices slightly under or above $60 per share, have brought Berkshire’s holding to over 255 million shares, marking a substantial 28.8% stake in the company.

Occidental Petroleum now stands as Berkshire’s sixth-biggest stock holding, with the conglomerate becoming the largest institutional investor in Occidental Petroleum. In addition to the common shares, Berkshire also holds $10 billion of Occidental preferred stock and warrants to buy another 83.9 million common shares at a set price.

With the stock price closing at $60.2, Warren Buffett’s warrants are “in the money,” indicating potential for increased profits. A full redemption of the preferred equity could push Berkshire’s ownership of Occidental above 40%, further solidifying its position in the energy company.

Warren Buffett’s investment strategy often involves thorough research and strategic decisions. He mentioned that he started buying Occidental shares after carefully reviewing the company’s earnings transcript. Buffett expressed confidence in Occidental CEO Vicki Hollub’s leadership, praising her for running the company in the right direction.

Buffett capitalized on the market turbulence in early 2022 to acquire a significant portion of Occidental Petroleum, worth over $7 billion, in just two weeks. His ability to navigate market fluctuations and make substantial investments underscores his skill as an investor.

Warren Buffett’s increased interest in Occidental Petroleum showcases his confidence in the company’s future prospects. As one of the most successful investors in the world, Buffett’s strategic moves in the energy sector are closely watched by investors and analysts alike. With his long-term perspective and value-oriented approach, Buffett continues to make waves in the investment world through strategic acquisitions and calculated investments.


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