Renowned investor Warren Buffett, known for his astute investment decisions, has showcased his activity in the oil sector. Following the release of Occidental Petroleum’s earnings report, Buffett’s conglomerate, Berkshire Hathaway, increased its stake in the company to 24.4%. By capitalizing on the report’s lower-than-expected profits, which resulted in a decline in the stock price, Buffett purchased shares at a discounted price. Between May 16th and May 18th, he invested approximately $201 million in 3.46 million Occidental shares. Buffett’s purchases helped stabilize the share price, and last week, they experienced a modest increase of nearly 2%.
Currently, Buffett owns a substantial portfolio of 217.3 million Occidental shares, valued at around $12.7 billion. This reinforces his confidence in the company’s prospects within the oil industry. Occidental’s management team also demonstrates their faith in the company by actively repurchasing its shares.
Market analysts highlight Occidental Petroleum’s favorable financial report, which enables the company to consistently pay dividends. The upcoming release of the second-quarter 2023 earnings report, scheduled for August, is expected to generate heightened interest among investors.
This observation is reflected in Occidental Petroleum’s current market value of $66.70. Investment professionals note a moderate level of risk associated with investing in the company.
Overall, Warren Buffett’s expertise in selecting promising assets and strategically managing his portfolio is evident as he continues to display interest in the oil sector. This attracts attention from other investors and creates potential for further growth in the value of Occidental Petroleum shares.
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