Buffett bought Occidental Petroleum shares for 9 consecutive days, raising his shareholding ratio to nearly 29% | Wilnesh News

Warren Buffett’s Berkshire Hathaway acquired more shares occidental petroleum corp. He has taken a large stake in the Houston-based oil and gas producer on each of the last nine trading days, according to data, bringing his huge stake to Nearly 29%. Supervision filing.

The Omaha, Neb.-based conglomerate bought shares of Occidental Petroleum Co. on every trading day from June 5 through Monday, totaling an additional 7.3 million shares purchased at prices slightly below or above at $60. File display.

The acquisition brings the number of shares held by Berkshire Hathaway to more than 255 million shares, accounting for 28.8% of the shares. Occidental is Berkshire Hathaway’s sixth-largest holding, and the group has become Occidental’s largest institutional investor to date.

Berkshire also owns $10 billion in Occidental preferred stock and has warrants to purchase another 83.9 million shares of common stock for $5 billion ($59.62 per share). Warrants are obtained as part of a company 2019 deals This helps with financing Occidental Petroleum Corporation acquires Anadarko Petroleum Corporation.

The stock closed at $60.2 on Monday, making Buffett’s warrants “in the money.” The full redemption of the preferred stock could increase Berkshire Hathaway’s stake in Occidental Petroleum to more than 40%.

Buffett has clarified that he will not take full control of the oil company, which was famously founded by legendary oilman Armand Hammer. There had been speculation about an acquisition after Berkshire received regulatory approval to buy up to 50% of the shares.

“Read every word”

The “Oracle of Omaha” previously said he started buying Occidental after reading the company’s earnings call transcript.

“I read every word and said this is exactly what I’m going to do,” Buffett told CNBC.

Occidental Petroleum CEO Vicki Holub “Run the company the right way,” he added.

Occidental Petroleum also pays a 1.5% dividend yield. The stock is essentially flat this year after falling 5% in 2023.

The legendary investor said he took advantage of increased market volatility in early 2022 to acquire a 14% stake in the energy company in just two weeks, worth more than $7 billion.

Buffett said in 2022: “I think this is incredible. Berkshire Hathaway can’t do this…The vast majority of large American companies have become poker chips. Imagine trying to (buy) the United States 14 % of the farm.