OXY - Occidental Petroleum: Berkshire Could Buy More And You Should Too
2024-06-28 12:55:29 ET
Summary
- Berkshire Hathaway Inc. recently added more Occidental Petroleum Corporation stock, accumulating a nearly 29% stake in the company.
- Berkshire could buy more shares considering Occidental Petroleum's valuation, Warren Buffett's interest in energy, and Berkshire's cash position.
- Occidental Petroleum is a good opportunity by itself already due to attractive valuation and earning catalysts.
- Berkshire Hathaway’s strong interest further skews the return/risk profile.
Berkshire added more OXY stock
It is public information that Warren Buffett’s Berkshire Hathaway Inc. ( BRK.A , BRK.B ) has accumulated a large position in Occidental Petroleum Corporation (NYSE: OXY ) common stock. As illustrated by the chart below, BRK started accumulating shares in 2022 Q1 and has kept adding to the position since then. After the 2024 Q1 disclosure (during which BRK added another 1.77% to its position), a more recent exchange filing in mid-June shows that:
Occidental Petroleum: Berkshire Could Buy More And You Should, TooBRK has picked up more OXY shares over the past few days, accumulating a nearly 29% stake in the oil producer worth about $15.37B. BRK bought a little over 2.9M shares in three separate transactions on June 13, 14, and 17 for about $176M. All told, BRK acquired about 5.5M OXY shares this month alone, amassing 255.3M shares in the company. In addition, it also owns warrants to buy another 83.9M OXY shares at $59.62 per share.
