Berkshire Hathaway, the multinational conglomerate led by Warren Buffett, has significantly increased its investment in Occidental Petroleum (OXY.N) by acquiring approximately 10.5 million shares this week, amounting to a total expenditure of $588.7 million. This move, disclosed in a filing with the U.S. Securities and Exchange Commission on Wednesday, elevates Berkshire’s ownership stake in Occidental to around 27%. Additionally, Berkshire holds preferred shares and warrants enabling the purchase of an additional 83.8 million Occidental shares for $4.7 billion, potentially raising their ownership to 33%. These transactions are part of a broader financial arrangement tied to Occidental’s 2019 acquisition of Anadarko Petroleum, marking a strategic maneuver in Berkshire’s investment portfolio.
This latest acquisition comes on the heels of Berkshire’s purchase of Occidental shares on October 25, where it acquired a 25.8% stake valued at approximately $14.4 billion. The conglomerate, known for its diverse holdings spanning various industries, including energy operations, the BNSF railroad, and Geico car insurance, is reinforcing its position in the energy sector with these substantial investments. The current market value of Occidental closed at $57.22 on Wednesday, reflecting the ongoing dynamics of Berkshire Hathaway’s strategic investment decisions in the ever-evolving landscape of the energy market.