Warren Buffett’s Berkshire Hathaway On The Way To A 20% Stake In Occidental

Berkshire Hathaway (NYSE: BRK.A), a conglomerate owned by Warren Buffett, recently disclosed that it acquired an additional 9.9 million Occidental Petroleum (NYSE: OXY) shares, bringing its ownership to a total of 163.4 million shares, with a stake of 17.4%.

Berkshire paid about US$584 million for the shares from Wednesday to Friday last week, at an average of US$58.98 per share. This recent purchase makes Buffett’s company the largest individual shareholder of the petroleum refiner, with the total value amounting to close to US$9.9 billion, based on Occidental’s Tuesday close of US$60.44.

In Q1 of 2022, Berkshire bought about US$7 billion worth of shares, and Buffett mentioned at the company’s annual meeting in May that he was able to purchase 14% of Occidental over just a two-week period. He also noted at the meeting that he felt that Occidental’s CEO was running the company well.

Via CNBC as of July 5, 2022

Truist analyst Neal Dingmann said in June that there’s a “good chance” that the billionaire will eventually purchase the petroleum refiner when it achieves investment-grade status.

If Buffett’s Berkshire does reach a 20% stake in the petroleum refiner, it will likely adopt the equity method of accounting for the stake and show in its results a proportional share of Occidental’s earnings.

Information for this briefing was found via CNBC, Barron’s and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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