Berkshire Hathaway, headed by CEO Warren Buffett, has taken advantage of recent downward pressure on Occidental Petroleum stock to further bolster its substantial holding in the energy company. The conglomerate now owns a 27.7% stake, equivalent to 243.7 million shares of Occidental Petroleum.
In late December, Berkshire acquired an additional 5.2 million shares at an average price of around $60 per share. However, the current market value of Occidental shares stands at $56.80, representing a 1.2% decline and its lowest closing price of 2024. This decline can be attributed to a broader selloff in energy stocks amidst a decrease in crude oil prices, with WTI crude currently priced at approximately $71.25 per barrel.
If Berkshire made further purchases this week, a filing is expected to be submitted to the Securities and Exchange Commission. As a substantial shareholder owning over 10% of Occidental stock, Berkshire is required to disclose any purchase or sale within two business days.
Berkshire's accumulation of Occidental stock began in early 2022, with their current holdings valued at approximately $13.9 billion. Notably, Buffett has consistently demonstrated shrewdness in his purchases, often acquiring shares below the $60 mark. This prudent approach has led to successful gains in the past, prompting him to take advantage of recent low prices for additional purchases.