Source: Caixin.
"Stock God" Warren Buffett's Berkshire Hathaway has been buying stocks for nine consecutive trading days, with the latest shareholding ratio reaching nearly 29%. According to three documents, Berkshire Hathaway purchased Occidental Petroleum stocks on June 5th, 6th and 7th; 10th, 11th and 12th; and 13th, 14th and 17th, with a total of 7.3 million shares and a trading price near $60 per share. After the increase, Berkshire Hathaway's shareholding in Occidental Petroleum exceeded 255 million shares, with a shareholding ratio of 28.8%, making it the largest institutional investor in Occidental Petroleum. According to Berkshire Hathaway's Q1 13F report, Occidental Petroleum ranks sixth in Berkshire Hathaway's holdings, behind Bank of America and American Express. It is worth mentioning that Berkshire Hathaway also holds $10 billion worth of Occidental Petroleum preferred shares and has warrants to purchase 83.9 million ordinary shares (about $59.62 per share) worth $5 billion. This means that Buffett's shareholding in Occidental Petroleum may even exceed 40%. On Tuesday's intraday, Occidental Petroleum's stock price rose nearly 1.8% to $61.29 per share. There is no doubt that Buffett is optimistic about the long-term development trend of the oil industry. He once said that due to the difficulty of increasing production capacity, oil will become a scarcer investment energy in the future. The late Munger even believed that oil would become a scarce resource in the next 200 years. In a letter to shareholders released in February of this year, Buffett said, "The energy industry is such an industry that it is very likely to obtain returns after a correspondingly long time; these businesses require long-term support. Therefore, short-term market fluctuations will not affect Berkshire Hathaway's investment strategy." As for why Occidental Petroleum was chosen, instead of other companies such as Bank of America and American Express, it may be because Buffett favors its CEO Vicki Hollub. In 2019, Occidental Petroleum launched a bidding war against its peer Anadarko Petroleum with the oil giant Chevron. At that time, Hollub went to Omaha to persuade Buffett to provide $10 billion in financing for her bidding war. With the funding from the "Stock God", Occidental Petroleum quickly won the deal. In exchange, Buffett received $10 billion worth of Occidental Petroleum preferred shares (with a dividend yield of 8%) and warrants to purchase 84 million ordinary shares at a price of $59.62 per share. Since that meeting in 2019, Buffett's relationship with Hollub has been very close. In March 2022, in an interview with the media, Buffett said, "We looked at Occidental Petroleum's earnings conference call on February 25th, and we bought everything we could the following week." Buffett said, "I looked at every number in the report, and Hollub is running the company in the right way." Earlier this month, Occidental Petroleum and Berkshire Hathaway's energy company, BHE, announced the establishment of a joint venture, TerraLithium, to jointly test and deploy technology for extracting lithium from geothermal brine.$Occidental Petroleum (OXY.US)$Stocks have been bought by the "Stock God" Warren Buffett's Berkshire Hathaway for nine consecutive trading days, with the latest shareholding ratio reaching nearly 29%.
According to three documents, Berkshire Hathaway purchased Occidental Petroleum stocks on June 5th, 6th and 7th; 10th, 11th and 12th; and 13th, 14th and 17th, with a total of 7.3 million shares and a trading price near $60 per share.
After the increase, Berkshire Hathaway's shareholding in Occidental Petroleum exceeded 255 million shares, with a shareholding ratio of 28.8%, making it the largest institutional investor in Occidental Petroleum. According to Berkshire Hathaway's Q1 13F report, Occidental Petroleum ranks sixth in Berkshire Hathaway's holdings, behind Bank of America and American Express.$Apple (AAPL.US)$, $Bank of America (BAC.US)$, $American Express (AXP.US)$, coca-cola (KO.US) and $Chevron (CVX.US)$.
It is worth mentioning that Berkshire Hathaway also holds $10 billion worth of Occidental Petroleum preferred shares and has warrants to purchase 83.9 million ordinary shares (about $59.62 per share) worth $5 billion. This means that Buffett's shareholding in Occidental Petroleum may even exceed 40%.
Occidental Petroleum's stock price rose 1.76% to $61.26 per share at Tuesday's close.
There is no doubt that Buffett is optimistic about the long-term development trend of the oil industry. He once said that due to the difficulty of increasing production capacity, oil will become a scarcer investment energy in the future. The late Munger even believed that oil would become a scarce resource in the next 200 years.
"The energy industry is such an industry that it is very likely to obtain returns after a correspondingly long time; these businesses require long-term support. Therefore, short-term market fluctuations will not affect Berkshire Hathaway's investment strategy." In a letter to shareholders released in February of this year, Buffett said.
As for why Occidental Petroleum was chosen, instead of other companies such as Bank of America and American Express, it may be because Buffett favors its CEO Vicki Hollub.$Exxon Mobil (XOM.US)$It may be because Buffett favors its CEO Vicki Hollub.
In 2019, Occidental Petroleum launched a bidding war against its peer Anadarko Petroleum with the oil giant Chevron. At that time, Hollub went to Omaha to persuade Buffett to provide $10 billion in financing for her bidding war. With the funding from the "Stock God", Occidental Petroleum quickly won the deal.
In exchange, Buffett received $10 billion worth of Occidental Petroleum preferred shares (with a dividend yield of 8%) and warrants to purchase 84 million ordinary shares at a price of $59.62 per share. Since that meeting in 2019, Buffett's relationship with Hollub has been very close.
"We looked at Occidental Petroleum's earnings conference call on February 25th, and we bought everything we could the following week." Buffett said, "I looked at every number in the report, and Hollub is running the company in the right way."
Earlier this month, Occidental Petroleum and Berkshire Hathaway's energy company, BHE, announced the establishment of a joint venture, TerraLithium, to jointly test and deploy technology for extracting lithium from geothermal brine.
Editor / jayden