Investing.com — Occidental Petroleum (NYSE:) shares climbed 2.3% in pre-open trading Friday after Warren Buffett’s Berkshire Hathaway (NYSE:) has significantly increased its holdings in the energy company. In a series of transactions that may signal confidence in the undervalued stock, Berkshire Hathaway acquired additional shares worth $409 million.
It is the firm’s first purchase in Occidental Petroleum since June, with shares down 24% year-to-date amid sagging oil prices.
The buying spree, which marks Berkshire’s first expansion of its Occidental position since June, took place from December 17 to December 19, 2024. During this period, Berkshire Hathaway, via its subsidiary National Indemnity Company, purchased 8,905,890 shares at prices ranging from $45.5458 to $46.9172.
With the latest purchases, Berkshire Hathaway’s stake in Occidental now consists of approximately 264 million shares, reaffirming its status as a major investor in the company. This move aligns with Buffett’s strategy of investing in sectors such as energy and transportation, and it complements Occidental’s focus on crude petroleum and extraction.
As Occidental Petroleum’s shares respond positively to the significant investment by one of the world’s most renowned investors, the market will be watching closely to see if this endorsement spurs further upward momentum in the stock’s valuation.
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