Warren Buffett, CEO of Berkshire Hathaway, speaks to the press as he arrives at the 2019 annual shareholders meeting in Omaha, Nebraska, May 4, 2019.
Johannes Eisele/AFP/Getty Images
has purchased nearly 30 million shares of
since the end of 2021, adding to an existing large holding of 83.9 million warrants in the big energy company.
In a filing late Friday,
Berkshire (ticker BRK/A, BRK/B) said it holds a total of 113.7 million shares of Occidental (OXY), including both the stock and warrants. The combined holding represents 11.2% of Occidental’s outstanding shares but that overstates Berkshire’s investment since the warrant exercise price is out of the money, or above the current stock price.
Occidental stock has surged lately, outpacing a strong energy group. The shares gained 17.6% Friday to $56.15 and have nearly doubled so far in 2022.
Berkshire got the warrants as an equity “kicker” when it invested $10 billion in Occidental preferred stock paying a lush 8% dividend yield in April 2019 when Occidental was raising money to fund its $50 billion-plus offer for Anadarko Petroleum and win a bidding war against the larger
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Those warrants have eight years until maturity and have…