Warren Buffett’s Berkshire Hathaway Buys Big Block of Occidental Petroleum Stock

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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

Berkshire Hathaway

has purchased nearly 30 million shares of

Occidental Petroleum

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

Chevron

(CVX).

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Those warrants have eight years until maturity and have…

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