Berkshire Hathaway buys more Occidental Petroleum shares
Warren Buffett's Berkshire Hathaway has made its largest stock purchase in years by acquiring additional shares in Occidental Petroleum. The investment increases Berkshire's stake in the energy company to nearly 30%. This move comes as Buffett, now 94, continues to build his position in the oil producer.
Berkshire Hathaway Inc., led by Warren Buffett, disclosed in a regulatory filing that it purchased approximately 7.4 million shares of Occidental Petroleum Corp. during the third quarter of 2024. This acquisition, valued at around $400 million based on the period's average prices, represents the conglomerate's biggest single-quarter buy of any stock in at least five years.
The purchase boosts Berkshire's ownership in Occidental to 28.2%, up from previous holdings. Buffett first began investing in Occidental in 2019, following the company's acquisition of Anadarko Petroleum. Since then, Berkshire has steadily increased its stake, reflecting Buffett's long-standing interest in the firm's oil and gas operations. As of the latest filing, Berkshire holds about 255 million shares of the Houston-based company.
This development occurs amid speculation about Buffett's future, as the investor approaches his 94th birthday and has hinted at retirement plans. Despite his age, Buffett remains actively involved in Berkshire's investment decisions. The filing also notes that Berkshire sold some shares of other holdings, such as Bank of America, during the same quarter, but the Occidental purchase stands out for its size.
Occidental Petroleum, a major player in U.S. energy production, has benefited from rising oil prices in recent years. Buffett has praised the company's assets, particularly its Permian Basin operations. However, the energy sector faces volatility due to global market fluctuations and geopolitical tensions.
Analysts view the increased stake as a vote of confidence in Occidental's long-term value, especially with the company's expansions into chemicals through its OxyChem subsidiary. Berkshire's involvement dates back to providing financing for Occidental's Anadarko deal, where it received warrants to buy additional shares.
No specific timeline for further purchases was provided in the filings, but the move underscores Buffett's strategy of concentrating on high-conviction investments as he nears the end of his career.