The legendary investor Warren Buffett continues to show strong interest in Occidental Petroleum. The investment holding Berkshire Hathaway bought shares on nine consecutive trading days and significantly increased its stake in the oil and gas company.
As evidenced by the documents filed with the U.S. Securities and Exchange Commission (SEC), Berkshire Hathaway acquired additional shares of Occidental Petroleum between June 5 and June 17 at purchase prices in the range of $60. In total, Buffett purchased an additional 7.26 million shares, bringing Berkshire's portfolio to over 255 million Occidental Petroleum shares. This secures Buffett one of the largest positions in Berkshire's portfolio, with Occidental now ranking sixth.
With a share of around 28.8 percent, Warren Buffett is the largest shareholder of Occidental Petroleum. Additionally, his share could rise to more than 40 percent through the redemption of preferred shares and the exercise of warrants. According to "CNBC," Buffett has already received permission from regulators to expand his share to up to 50 percent, although he does not intend to fully take over the company.
The stock of Occidental Petroleum was unimpressed by further purchases by Buffett and rose only 1.07 percent to 61.26 USD over the past five trading days. Since the beginning of the year, the stock has increased by only 2.6 percent and is in a sideways trend.
Analyst James Shanahan from the financial services provider Edward Jones noted that Buffett apparently makes targeted purchases during stock price setbacks. "Mr. Buffett seems to step in and buy more OXY shares when the stock price falls to or below 60 dollars. This definitely seems to have set a floor for the stock price," Shanahan said, according to "Yahoo Finance." Since the Occidental Petroleum stock continues to hover just above the 60-dollar threshold, further purchases by Buffett could be imminent.
As Buffett continues to expand his position in Occidental Petroleum, he has simultaneously sold shares in the Chinese car manufacturer BYD. These strategic decisions highlight Buffett's focus on long-term value investments in the energy sector while also acting opportunistically with technological and international investments.
Buffett's Continued Investments in Occidental Petroleum Reflect His Confidence in the Company's Future Development and the Energy Market. Given the Stable Price Development and Ongoing Purchases by Berkshire Hathaway, Occidental Petroleum Remains a Key Element in the Star Investor's Portfolio.
