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Warren Buffett's Berkshire Hathaway raises stake in Occidental Petroleum stock

EditorSenad Karaahmetovic
Published 02/06/2024, 06:56 PM
© Reuters.

On Monday, Occidental Petroleum (NYSE:OXY) disclosed that Berkshire Hathaway (NYSE:BRKa) has increased its investment in the company, purchasing an additional 4.3 million shares. The transaction, which took place between February 1-5, 2024, involved a total expenditure of $245.9 million, with the shares acquired at an average price of $57.15 each. This average price is slightly higher than the closing price of $56.98, representing a premium of 0.3%.

The acquisition of shares by Berkshire Hathaway is a clear indication of the firm's continued interest and confidence in Occidental Petroleum. The purchase adds to Berkshire Hathaway's already substantial holding in the oil and gas company. The investment conglomerate, led by renowned investor Warren Buffett, has been steadily increasing its stake in Occidental Petroleum over the past years.

With this latest purchase, Berkshire Hathaway has further cemented its position as a major shareholder in Occidental Petroleum. The energy sector, particularly companies involved in oil and gas, has been a focus for investors seeking to capitalize on the industry's dynamics, including fluctuating oil prices and evolving energy policies.

Occidental Petroleum has not released any additional comments regarding Berkshire Hathaway's purchase. The transaction details were made public in a regulatory filing, which is a standard procedure for publicly traded companies when significant stock transactions occur involving major shareholders.

InvestingPro Insights

Berkshire Hathaway's recent acquisition of additional shares in Occidental Petroleum underscores its investment strategy and confidence in the energy sector. This move aligns with Berkshire's reputation for strategic investments in well-positioned companies. Let's delve into some insights that may shed light on Berkshire Hathaway's decision and the company's financial health.

An InvestingPro Tip notes that Berkshire Hathaway (NYSE:BRKb (NYSE:BRKb)) has a perfect Piotroski Score of 9, suggesting strong financial health and operational efficiency. Additionally, analysts predict that the company will be profitable this year, which may contribute to its decision to increase its stake in Occidental Petroleum, anticipating future growth.

Looking at the real-time data from InvestingPro, Berkshire Hathaway boasts a robust Market Cap of 848.25B USD. The company's P/E Ratio is currently at 11.17, reflecting investor sentiment on the value they receive for each dollar of earnings. Moreover, Berkshire Hathaway has seen substantial Revenue Growth over the last twelve months as of Q3 2023, with an 18.05% increase, which is indicative of the company's strong performance in the financial services industry.

Investors interested in deeper insights can find additional InvestingPro Tips that highlight Berkshire Hathaway's low price volatility and its status as a prominent player in the Financial Services industry. With liquid assets that exceed short-term obligations and trading near its 52-week high, Berkshire Hathaway presents a compelling case for investors looking for stability and growth potential.

For those looking to make the most informed investment decisions, consider subscribing to InvestingPro+. Use coupon code SFY24 to get an additional 10% off a 2-year subscription, or SFY241 to get an additional 10% off a 1-year subscription. With InvestingPro+, you can access a wealth of additional tips; for instance, there are nine more tips available for Berkshire Hathaway alone, offering a comprehensive analysis to guide your investment strategy.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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