Buffett's Berkshire Hathaway has been buying oil stocks every day recently! It has increased its holdings in Occidental Petroleum for nine consecutive trading days
Berkshire Hathaway bought shares of Occidental Petroleum on every trading day from June 5th to this Monday, June 17th, increasing its holdings by a total of 7.3 million shares, with purchase prices around $60 per share
According to regulatory filings, Warren Buffett's Berkshire Hathaway has been increasing its stake in Occidental Petroleum over the past nine trading days, with its ownership nearing 29%.
Specifically, from June 5th to this Monday, June 17th, Berkshire has been buying Occidental Petroleum's stock every trading day, accumulating a total of 7.3 million shares at around $60 per share.
The latest increase brings Berkshire's total stake in Occidental Petroleum to over 255 million shares, representing 28.8% of the company. Occidental Petroleum is Berkshire's sixth-largest stock holding, with Berkshire now being the largest institutional investor in Occidental Petroleum.
Berkshire previously owned $10 billion worth of Occidental Petroleum preferred stock and had warrants to purchase an additional 83.9 million common shares at a price of $59.62 per share. These warrants were obtained by Berkshire in 2019 when it helped finance Occidental Petroleum's acquisition of Anadarko Petroleum.
On Tuesday, Occidental Petroleum's stock price rose over 1%, breaking through $61 per share, making Buffett's warrants "in the money". Fully redeeming the preferred stock could increase Berkshire's ownership stake in Occidental Petroleum to over 40%.
Berkshire had previously received regulatory approval to acquire up to 50% of Occidental Petroleum's shares. However, Buffett later clarified that he would not seek full control of Occidental Petroleum.
Regarding the investment in Occidental Petroleum, Buffett had previously stated that he took advantage of the high market volatility in early 2022 to acquire 14% of the energy company's shares in just two weeks, worth over $7 billion. "I think it's unbelievable. You can't do this with Berkshire. In America, large companies have mostly become chips. Imagine trying to buy 14% of all farms in America, 14% of apartment buildings, 14% of car dealerships, or anything, and 40% is already locked up elsewhere."