From CNBC: 2024-06-18 09:13:02

Warren Buffett has been adding more shares of Occidental Petroleum, increasing his stake to 29% over the past nine trading sessions. Berkshire Hathaway purchased 7.3 million shares at prices around $60, bringing their total to 255 million shares. Buffett also owns $10 billion of preferred stock and warrants to buy more shares.

The stock closed at $60.2 on Monday, putting Buffett’s warrants “in the money.” If the preferred equity is fully redeemed, Berkshire’s ownership could surpass 40%. Buffett clarified that he won’t take full control of Occidental, despite speculation after Berkshire received approval to buy up to 50% of the company.

Buffett started buying Occidental after reading a transcript of their earnings call. He praised CEO Vicki Hollub’s leadership and mentioned the company’s 1.5% dividend yield. The stock has been flat this year after a 5% dip in 2023. Buffett acquired 14% of the firm, worth over $7 billion, in just two weeks during early 2022, capitalizing on market volatility.

Read more: Warren Buffett buys Occidental shares for 9 straight days, pushes his stake to nearly 29%