Buffett’s holding company, Berkshire Hathaway, is betting big on Occidental Petroleum stock.
Warren Buffett isn’t shy about making big bets.At the inner berkshire hathawayIn its portfolio of listed stocks, just 10 positions account for more than 90% of the invested capital.
One of those positions is western oil (Oxy -0.42%). Buffett and Berkshire are betting on this company in a much bigger way than most investors realize.
Buffett and Berkshire are confident
Berkshire’s publicly traded portfolio is worth about $350 billion, according to its latest filing. It’s important to note that this is only a portion of Berkshire’s total asset base. For example, the company has full ownership of dozens of additional businesses not included in this figure. Still, this $350 billion portfolio of his is a great way to see what Buffett and his investment team stand for.
Occidental Petroleum currently ranks No. 6 within this portfolio. chevron, another oil and gas producer. Berkshire owns about 250 million Occidental Petroleum shares, worth about $14 billion. Note that Occidental Petroleum’s market capitalization is around $60b. This means Berkshire owns about a quarter of the entire company.
Berkshire first purchased the stock in the first quarter of 2022. At the time, Occidental Petroleum stock was trading between $20 and $30 per share. Currently, the stock price is above $60. Still, Berkshire remains heavily invested, with no stock sales reported last quarter.
Occidental Petroleum and Chevron are the only oil and gas stocks Buffett owns in this portfolio, but together they account for about 10% of the total portfolio. It’s clear that someone at Berkshire, perhaps even Buffett himself, loves Occidental Petroleum stock.
Ryan Vanzo has no position in any stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway and Chevron. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.
