Billionaire Buffett backs up the truck with 12M more Occidental Petroleum shares

Billionaire Buffett backs up the truck with 12M more Occidental Petroleum shares


Kevin Dietsch

Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A) disclosed it purchased an additional 12 million Occidental Petroleum (NYSE:OXY) shares this week as the billionaire adds to his sizeable stake in the oil giant.

Buffett purchased the 12 million shares for about $700 million at average price of $58.11 on Tuesday and Wednesday and now owns a total of 175 million shares, giving Berkshire a stake of about 18.6{3b930a6ca12a59604e1bbadfc55b7d1b7a0aa8613f1ab9377cace0d5afcb5fb9}, according to a filing. Berkshire paid in the range of $57 to $59 for the shares.

The latest purchase comes after Buffett spent almost $630 million last week adding to his stake in the oil producer, disclosing late last week that he had purchased 9.9 million shares. Berkshire (BRK.A) (NYSE:BRK.B) is Occidental’s (OXY) largest individual shareholder with 175 million shares worth about $10.8 billion, based on OXY’s Thursday close at $61.47, with options to buy another 83.9M shares that would bring its stake to about 28{3b930a6ca12a59604e1bbadfc55b7d1b7a0aa8613f1ab9377cace0d5afcb5fb9}.

Truist analyst Neal Dingmann last month said there’s a “good chance” Buffett eventually will buy the whole company when it achieves investment-grade status and he raised his price target to $93.

In the first quarter, Berkshire (BRK.A) purchased ~$7.0 billion worth of Occidental shares. Buffett noted at the Berkshire annual meeting in early May that he was able to buy 14{3b930a6ca12a59604e1bbadfc55b7d1b7a0aa8613f1ab9377cace0d5afcb5fb9} of the petroleum refiner over only a two-week period.

Quoted from Various Sources

Published for: Ipodifier