Warren Buffett Keeps Doubling Down on Occidental Petroleum (OXY) Stock


  • Warren Buffett’s Berkshire Hathaway (BRK-A) just disclosed a $105.55 million purchase of Occidental Petroleum (OXY) stock.
  • Buffett now owns a 28.5% stake in the company, or 252.33 million shares.
  • OXY stock has remained flat year-to-date.
OXY stock - Warren Buffett Keeps Doubling Down on Occidental Petroleum (OXY) Stock

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Warren Buffett’s Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) first bought shares of Occidental Petroleum (NYSE:OXY) during the third quarter of 2019 before completely selling out in Q2 2020. However, the “Oracle of Omaha” had a change of heart, as he bought back a position in the energy company during Q1 2022. To this day, Buffett is still buying shares.

Yesterday, Berkshire filed a Form 4 revealing a $105.55 million purchase of OXY stock. The hedge fund picked up a total of 1.75 million shares between June 10 and June 12 that were purchased at average prices between $60.25 and $60.42. Following the transaction, Berkshire now owns 252.33 million shares of OXY — which equates to a 28.46% stake — as well as 84,897 shares of Series A preferred stock. The firm’s stake was 27.8% as of the end of 2023.

In fact, this was Buffett’s second OXY stock buy this month. He acquired 2.56 million shares worth $153.29 million between June 5 and June 7. These shares were bought at average prices ranging between $59.66 and $59.93.

Since Berkshire owns more than 10% of Occidental’s shares, the hedge fund is classified as an insider of the company.

OXY Stock: Warren Buffett Buys $105.55 Million of Shares

Berkshire was already the largest shareholder of OXY prior to its June purchases. The second- and third-largest shareholders, Dodge & Cox and Vanguard, own 79.52 million and 55.32 million shares, respectively.

Buffett has emerged as a frequent buyer of Occidental Petroleum. He has disclosed buys via Form 4 filings in February, December, October and last June.

According to Barron’s, Berkshire’s OXY cost basis is in the low to mid $50 range. Most of its buys have come in below $60.

The hedge fund’s stake is eye-opening, although Buffett has previously communicated that he isn’t interested in buying the whole company. Instead, his OXY bet seems to bank on the prowess of CEO Vicki Hollub and domestic oil production.

“No one knows what oil prices will do over the next month, year, or decade. But Vicki does know how to separate oil from rock, and that’s an uncommon talent, valuable to her shareholders and to her country,” said Buffett in Berkshire’s 2023 shareholder letter.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.  

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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