Warren Buffett’s investment company, Berkshire Hathaway, has recently purchased over 7 million Occidental Petroleum shares within a span of two weeks. The company bought these shares in nine consecutive sessions from June 5 to June 17, as reported to the US Securities Commission (SEC). This acquisition increased Berkshire Hathaway’s stake in Occidental to 28.8%, making it the 6th most valuable stock in their portfolio and the oil company’s largest institutional shareholder.
Berkshire Hathaway has been investing in Occidental since 2022, when Buffett purchased a 14% stake in the company amounting to $7 billion in just two weeks. Buffett was impressed by Occidental’s financial statements and CEO Vicki Hollub’s leadership, stating that she is “running the company very right”. Occidental’s focus on carbon capture technology sets it apart from other oil and gas companies, aligning with Berkshire’s interest in increasing its presence in the sector.
In addition to the common shares, Berkshire also owns $10 billion worth of Occidental’s preferred shares and warrants to buy nearly 84 million additional common shares valued at $5 billion. Despite this significant ownership, Warren Buffett has stated that he does not plan to fully control the oil company, dispelling earlier assumptions that Berkshire would acquire a maximum of 50% ownership.
Occidental’s shares have seen a 2% increase since the beginning of the year and a 21% increase over the past five years. Berkshire’s investment in Occidental reflects its strategy of diversifying its portfolio within the energy sector, with significant holdings in companies like Chevron and various electric and renewable energy companies.
