Warren Buffett’s investment company, Berkshire Hathaway, has been steadily increasing its stake in Occidental Petroleum over the past nine trading sessions. With consistent purchases made from June 5 to Monday, Berkshire has acquired an additional 7.3 million shares, bringing its total holding to over 255 million shares, equivalent to a 28.8% stake in the Houston-based oil and gas producer.
As a result of these purchases, Occidental Petroleum now stands as Berkshire’s sixth-largest stock holding. In addition to the common shares, Berkshire also owns $10 billion worth of Occidental’s preferred stock and holds warrants to purchase another 83.9 million common shares at a predetermined price. These investments were made as part of a financing deal in 2019 to support Occidental’s acquisition of Anadarko Petroleum.
Warren Buffett has been vocal about his decision-making process when it comes to investing in Occidental Petroleum. He mentioned that his interest in the company was sparked after carefully reading the transcript of a conference call discussing the company’s earnings. Impressed by the management style of Occidental CEO Vicki Hollub, Buffett commended her for running the company in the right direction.
Despite the market’s fluctuations, Occidental Petroleum has maintained a dividend yield of 1.5% and has seen stable performance, with the stock remaining relatively flat this year after a slight decline in 2023. With Buffett’s deepening involvement in the company, there is speculation about the potential for further growth and strategic decisions. While Buffett has clarified that he has no intention of taking full control of the oil company, Berkshire’s ownership could surpass 40% if the preferred equity is fully redeemed.
Warren Buffett’s reputation as the “Oracle of Omaha” is further solidified by his strategic maneuvers in the market. He capitalized on the heightened volatility in early 2022 to acquire a significant portion of Occidental Petroleum in a short period, demonstrating his keen eye for profitable opportunities. As one of the most successful investors in history, Buffett’s decisions and investments are closely watched and analyzed by the financial community.