Warren Buffett, the chairman of Berkshire Hathaway (NYSE:BRKa), has increased his stake in Occidental Petroleum Corp (NYSE:NYSE:OXY) by acquiring an additional 3,921,835 shares on Wednesday. The purchase, made at an average price of $62.83 per share, amounted to approximately $246.4 million and raised his total holdings in the company to 228,051,027 shares. This move represents a 1.75% change in shares and increases Buffett's stake in OXY to 25.78%, up from 25.1%.
Today, Berkshire Hathaway controls nearly $14.4 billion worth of Occidental shares, $8.5 billion of preferred stock with an 8% dividend, and around 83.9 million warrants to buy OXY common shares at $59.62 each. Despite having permission to acquire up to a 50% stake, Buffett disclosed during the May 2023 Berkshire Annual Meeting that he plans future purchases without seeking full control.
Occidental Petroleum Corp now accounts for about 4.11% of Buffett's portfolio, which is valued at $348.19 billion. The Oracle (NYSE:ORCL) of Omaha is known for his value investing philosophy which focuses on acquiring companies trading below their intrinsic value and holding them for a long period.
As of the end of 2022, the company reported net proved reserves of 3.8 billion barrels of oil equivalent and had a market capitalization of $55.97 billion.
Since Buffett's recent transaction, the stock has gained 0.7%. Year-to-date, the stock has seen an increase of 3.64%. Despite being modestly overvalued according to GuruFocus valuation, its strong profitability and growth potential make it an attractive investment. The stock has seen a massive increase of 998.44% since its IPO.
Wall Street analysts have assigned Occidental a Moderate Buy consensus with seven Buys, six Holds, one Sell rating, and a stock price target of $70.71, indicating an 11.8% upside potential. Other gurus holding the stock include Dodge & Cox, Smead Value Fund, and Prem Watsa.
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