Buffett sees Occidental buying window as crude declines in stocks

Photo of author

(Bloomberg) — Occidental Petroleum Corp.’s weak share price — dragged down by crude’s latest decline — is giving Warren Buffett another chance to raise his stake.

Read the most from Bloomberg

Billionaire investor Berkshire Hathaway Inc has spent more than $800 million to buy 13.7 million shares of the shale explorer over the past two weeks, according to a company filing. The investment firm, the largest Occidental shareholder, now owns 23% of the company, which is worth about $12 billion at current prices.

Berkshire, which last year won approval from US regulators to acquire more than 50% of Occidental, has been a frequent buyer its shares drop to around $60.

The Houston-based producer has fallen nearly 8% this year with peers as the recent plunge in oil prices eroded profits and cash generation in the sector. Troubled banks, including Credit Suisse Group AG, have raised fears of a recession, putting pressure on prices.

Read the most from Bloomberg Businessweek

©2023 Bloomberg L.P.

See also  'God have mercy on us all': Robert Kiyosaki warns economy is history's 'biggest bubble' and urges investors to dump paper assets – here are 3 real assets he likes