Source: Barron's
Author: Andrew Bary (Andrew Bary)
This past week, Buffett's$Berkshire Hathaway-A (BRK.A.US)$Add warehouse again$Occidental Petroleum (OXY.US)$Currently, the shareholding ratio is close to 25%.
According to documents submitted by Berkshire to the US Securities and Exchange Commission (SEC) on Tuesday (May 30), the company bought 4.66 million shares of Occidental Petroleum at a price of $58.30 to $58.85 per share from May 25 to 30, spending a total of about 275 million US dollars.
According to the document, the number of Occidental Petroleum shares held by Berkshire increased to 221.9 million shares, and the shareholding ratio reached 24.9%. Based on the closing price of Occidental Petroleum of 58.59 US dollars on Tuesday, this portion of shares is worth about 13 billion US dollars.
Buffett continues to take advantage of weak oil and gas prices to increase his holdings in Occidental Petroleum. As oil prices fell below $70, Occidental Petroleum shares fell 0.6% to $58.59 on Tuesday. In early May, Berkshire spent more than 300 million US dollars to buy shares of Occidental Petroleum.
During Tuesday's after-hours trading session, Occidental Petroleum rose 0.59%.
According to Barron's estimates, Buffett tends to buy Occidental Petroleum stocks when the stock price falls below 60 US dollars, and Berkshire's average purchase cost may be around 50 US dollars. Buffett said at Berkshire's annual shareholders' meeting in May that he does not plan to fully acquire Occidental Petroleum, but may continue to increase positions.
Buffett said, “Some speculate that we want to have a controlling interest in Occidental Petroleum, but we wouldn't do that. Occidental Petroleum has the right management for the company, and if it has a controlling interest, we don't know what to do with it.”
Buffett praised Occidental Petroleum CEO Vicki Hollub (Vicki Hollub) as an “extraordinary manager,” and he also said, “We love having Vicki run this company.”
It's still unclear how much Buffett wants to increase his shareholding ratio.
Berkshire also holds about $9.4 billion in preferred shares of Occidental Petroleum, with a dividend rate of 8%. Berkshire also holds 84 million stock warrants from Occidental Petroleum, which can buy common stock at an exercise price of about 59 US dollars per share.
Editor/jayden