Why Warren Buffett keeps buying more of Occidental stock?

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Latest Update Buffet buying Occidental Petroleum stock:

  • Warren Buffett's Berkshire bought another 9.9 million shares of Occidental this week, giving it a 17.4% stake in the oil company.
  • Berkshire is now the biggest shareholder in Occidental and plans to buy another 83.9 million shares for $5 billion.
  • Occidental's share price has almost doubled this year, benefiting from Berkshire's purchases as well as rising oil prices.

Why Buffett keeps buying Occidental stock?

  • It is speculated that Buffett might eventually buy all of Occidental.
  • One of the main reasons is the rally in crude oil prices to more than $120 - fueled by Ukraine-Russia war.
  • Energy was the best performing sector in 2021, returning an impressive 53%. Majority of the energy stocks including Occidental were available at cheaper valuations.
  • Buffett is also impressed with company’s financials and yearly growth in revenue and profits.
  • In last quarter, Occidental generated $8.01 billion of revenue, a 139% annual jump and quarterly dividend of 13 cents per share, a whopping 1,200% higher than last year.
  • Did Warren Buffet buy Occidental Petroleum

  • Why did Warren Buffett buy Occidental Petroleum stock?

  • How much Occidental does Berkshire own?

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