"Stock god" Buffett's Berkshire Hathaway company has purchased more Occidental Petroleum stocks, raising his latest holding in the Houston-based oil and gas producer to nearly 29%. According to regulatory filings, Berkshire has been buying Occidental Petroleum stocks for nine trading days from June 5th to Monday, with a total of 7.3 million shares purchased at prices slightly lower or higher than $60. This purchase increased Berkshire Hathaway's holdings of Occidental Petroleum to more than 255 million shares, representing 28.8% of the company's total shares outstanding. Occidental Petroleum is Berkshire's sixth largest holding and Berkshire has become the largest institutional investor in Occidental Petroleum so far.

Berkshire Hathaway bought additional Occidental Petroleum shares on all nine trading days from June 5th until Monday, according to regulatory filings. The total amount of shares purchased was 7.3 million, and the purchase price was slightly lower or higher than $60.

This purchase brings Berkshire Hathaway's holdings in Occidental Petroleum to over 255 million shares, representing 28.8% of the total shares outstanding. Occidental Petroleum is Berkshire's sixth largest holding, and Berkshire has become the largest institutional investor in the company. Berkshire Hathaway also holds $10 billion worth of Occidental Petroleum preferred stock, as well as warrants to purchase an additional 83.9 million shares of common stock for $5 billion ($59.62 per share). If all the preferred stocks are redeemed, Berkshire Hathaway's holdings in Occidental Petroleum will exceed 40%.

Buffett clarified that he will not take full control of the company, which is famous for being founded by legendary oil tycoon Armand Hammer. There were rumors that Buffett would acquire the company after regulatory authorities approved Berkshire Hathaway's purchase of up to 50% of Occidental Petroleum's shares. If the preferred stocks are all redeemed, Berkshire Hathaway's stake in Occidental Petroleum will exceed 40%. The stock price of Occidental Petroleum closed at $60.20 on Monday, making Buffett's warrants "in-the-money".

"Oracle of Omaha" Buffett started buying shares in Occidental Petroleum after reading the transcript of the company's earnings conference call, according to a media interview conducted in March 2022. He said in an interview with CNBC, "I looked at every number in the report and bought everything I could in the following week." He added that Occidental Petroleum CEO Vicki Hollub "is running the company the right way."

Buffett's persistent investment in oil stocks in recent years highlights his optimistic attitude towards the long-term development trend of the oil industry. He seems to believe that although more and more countries have set ambitious goals to reduce carbon emissions, the world still needs oil, a lot of oil. He has stated that oil will become a scarcer investment energy source in the future due to the difficulty of increasing production capacity.

Leo Mariani, senior energy analyst at brokerage firm Roth Capital, believes that Berkshire Hathaway wants to expand its involvement in the oil industry, so they chose a company they are familiar with. "I think Berkshire Hathaway has been operating in the oil industry for many years and is familiar with this company."

By taking advantage of the market volatility in early 2022, the legendary investor acquired 14% of Occidental Petroleum's shares worth more than $7 billion in just two weeks. The dividend yield of Occidental Petroleum is 1.5%. The company's stock price has fallen by 5% in 2023 and has been basically flat this year.