这一投资是伯克希尔近年来规模最大的股权投资之一。自2022年初以来，巴菲特执掌的伯克希尔大举买入西方石油，逐步增持该公司28%的股份。根据Buffett Watch的数据显示，西方石油是伯克希尔整体投资组合中的第六大重仓股。Since the beginning of this year, the stock price of Occidental Petroleum has fallen by 15% to $50.88. According to estimates, this price has dropped below Warren Buffett's average holding cost of about $54. As the sixth largest holding of Berkshire Hathaway, Buffett may also suffer losses this time.
Recently, international oil prices have continued to fall, and Warren Buffett, who is heavily invested in Occidental Petroleum, may now face a "trapped" situation.
Barron's believes that Berkshire Hathaway currently holds 0.255 billion shares of Occidental Petroleum, which is in a loss position and is worth about $13 billion.
This investment is one of the largest equity investments made by Berkshire Hathaway in recent years. Since early 2022, Buffett's Berkshire Hathaway has been buying Occidental Petroleum in large quantities, gradually increasing its shareholding to 28% of the company. According to data from Buffett Watch, Occidental Petroleum is the sixth largest heavy stock in Berkshire Hathaway's overall investment portfolio.
However, due to the overall decline in the crude oil market, the stock price of Occidental Petroleum has fallen by a cumulative 15% this year, currently trading at $50.88, and recently touched a 52-week low. Barron's analysis believes that the current stock price of $50.88 has fallen below Buffett's average holding cost of about $54. It stated,
According to filings submitted by Occidental Petroleum to the U.S. Securities and Exchange Commission, Berkshire Hathaway has purchased approximately 90% of the company's shares since March 2022 at a price of nearly $56 per share. Including the low-cost shares purchased earlier, the average cost of the overall position is about $54.
Although Berkshire Hathaway still holds $8.5 billion in preferred shares with an annual dividend of 8% and has approximately 84 million warrants for Occidental Petroleum shares, these warrants have an exercise price close to $60 per share and are no longer profitable. Since June of this year, Berkshire Hathaway has suspended further purchases of Occidental Petroleum shares.
The report states that there are several reasons for the weak performance of Occidental Petroleum's stock price this year compared to its peers. First, energy stocks are unpopular due to the fall in oil prices. The price of West Texas Intermediate crude oil on the New York Mercantile Exchange recently fell to a new low for the year of $66.35 per barrel, while natural gas prices have also been weak, at around $2.25 per million British thermal units.
In addition, occidental petroleum's high financial leverage puts it at a disadvantage compared to its peers during a period of weak commodity prices, and its ability to return to shareholders is also inferior to industry giants such as exxon mobil and chevron.
However, despite this, occidental petroleum is still considered a "small giant" in the energy industry, with a wide range of chemical and transportation pipeline businesses, and is the largest oil producer in the Permian Basin in Texas.
Editor/ping
