The U.S. Securities and Exchange Commission (SEC) recently disclosed that Berkshire Hathaway, led by Warren Buffett (Trades, Portfolio), has increased its investment in Occidental Petroleum (OXY, Financial). On February 7, Berkshire purchased 763,017 shares of Occidental at $46.8195 per share, totaling approximately $35.7 million. This acquisition raises Berkshire's ownership in Occidental to about 28.3%, equating to approximately 265 million shares valued at $12.9 billion.
Berkshire's relationship with Occidental began in 2019 when Occidental sought Buffett's support during its acquisition of Anadarko Petroleum. Buffett invested $10 billion in Occidental's preferred stock, providing crucial backing against rival Chevron's bid. Since 2022, Buffett has consistently increased his stake in Occidental, making Berkshire its largest shareholder.
Despite Occidental's recent performance challenges, with a 4.17% decline in 2023 and a 16.01% drop in 2024, Buffett remains committed. Analysts suggest Buffett sees long-term potential in Occidental, particularly due to its ongoing investments in new projects and strategic decisions under CEO Vicki Hollub's leadership.
In addition to common stock, Berkshire's investment in Occidental includes $10 billion in preferred stock purchased in 2019, which yields an 8% annual dividend. This investment continues to generate significant returns for Berkshire, providing $800 million in annual cash flow.
Also check out:
