2024-01-20 10:29:00 ET
Warren Buffett's company, Berkshire Hathaway , has been buying shares of oil giant Occidental Petroleum (NYSE: OXY) hand over fist. Berkshire currently owns nearly 28% of Occidental's outstanding shares (and has regulatory approval to buy up to half the company). At 3.8% of its investment portfolio, it's Berkshire's sixth-largest stock holding.
However, while Buffett and his team clearly love Occidental, that doesn't mean it's the best oil stock for everyone. Chevron (NYSE: CVX) , EnLink Midstream (NYSE: ENLC) , and Enterprise Products Partners (NYSE: EPD) stand out to a few Fool.com contributors as better options in the energy sector. Here's why they like them better than Occidental.
Reuben Gregg Brewer (Chevron): Shortly before the coronavirus pandemic, Occidental got into a bidding war with Chevron over Anadarko Petroleum. With the help of Warren Buffett , Oxy won the deal. In the end, Chevron didn't want to overpay, which might have put its rock-solid financial position at risk.
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Warren Buffett Owns Occidental, but You Should Consider These 3 Energy Stocks Instead