Warren Buffett.

Warren Buffett’s Berkshire Hathaway bought another $52 million of Occidental Petroleum stock.
The investor’s conglomerate has invested about $7.5 billion in the energy company this year.
Buffett was able to build a 14% stake in Occidental in about two weeks due to frenzied trading.

Warren Buffett’s Berkshire Hathaway spent another $52 million on Occidental Petroleum stock this week, lifting its investment in the oil-and-gas company this year to about $7.5 billion.

The famed investor’s conglomerate bought about 902,000 shares, boosting its holding to 143 million shares, Securities and Exchange Commission filings show. That stake is worth $8.5 billion, based on Occidental’s closing price of $59.22 on Thursday.

Berkshire also holds around 84 million stock warrants with an exercise price of $59.62 — just above Occidental’s closing stock price of $59.22 on Thursday. If Berkshire were to exercise its warrants and retain the resulting stock, it would own 227 million Occidental shares, or about 23% of the company.

Berkshire piled $7 billion into Occidental stock between February 28 and March 16, then invested about $340 million more on May 5. The first outlay contributed to Berkshire deploying a net $41 billion on equities in the first quarter, marking one of the most active buying periods in its history.

Buffett pounced on Occidental after hearing CEO Vicki Hollub speak on an earnings call in late February. The executive highlighted the company’s operational progress, debt repayments, dividend hikes, and focus on generating long-term, sustainable free cash flow.

“What Vicki Hollub was saying made nothing but sense,” Buffett said during Berkshire’s recent annual meeting. “I decided that it was a good place to put Berkshire’s money.”

Buffett also called out the rampant speculation and frenzied trading that enabled Berkshire to buy 14% of Occidental in about two …read more

Source:: Business Insider


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