Occidental Petroleum
stock has been under pressure recently, and
Berkshire Hathaway
has capitalized on that weakness by adding to its large holding in the energy company.
Berkshire Hathaway
now owns a 34% stake in Occidental, according to a filing late Wednesday. It previously held a 27.7% stake following its most recent purchases in late December.
Occidental
shares closed Wednesday at $56.80, down 1.2%, its lowest closing price of 2024. The stock has fallen more than 3% so far this week amid a selloff in energy stocks with crude oil down more than $2 a barrel to about $71.25 a barrel (based on WTI crude).
Occidental pointed 1.6% higher ahead of the open Thursday as investors digested the news that Berkshire has increased its holding.
As a holder of more than 10% of Occidental stock, Berkshire must file with the Securities and Exchange Commission within two business days of a purchase or sale of Occidental stock.
There was heavier-than-usual volume of more than 10 million shares of Occidental stock on Monday, above the roughly 8.5 million shares Wednesday.
Berkshire Hathaway CEO Warren Buffett began accumulating Occidental stock in early 2022, and Berkshire now owns about $13.9 billion of the company. Its average cost for the bulk of its holdings in the mid 50s, meaning Berkshire likely doesn’t have a big profit.
Buffett has been disciplined about his Occidental purchases and generally paid less than $60 a share. He has been quick to buy the stock whenever it dips below $60 in the past year.
Write to Andrew Bary at [email protected]
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