Berkshire Hathaway buys more Occidental shares amid stock slump

In February 2025, Warren Buffett's Berkshire Hathaway, a prominent investment conglomerate based in Omaha, Nebraska, bolstered its investment in Occidental Petroleum following a significant drop in the company's stock value. On a recent Friday, Berkshire purchased 763,017 shares for $35.7 million after Occidental's stock fell over 30% from its peak. This decline followed a poor performance in 2024, where the stock dropped by more than 17% due to weakening oil prices. Berkshire currently holds a substantial 28.2% stake in Occidental, making it the largest shareholder, with a continued commitment to the company despite speculation regarding a potential acquisition. Buffett has clarified his intention to maintain a minority stake rather than pursuing full control of the firm. Furthermore, Occidental Petroleum, founded by Armand Hammer, continues to focus on enhancing its business operations, including efforts in carbon capture technology, which is becoming an increasingly critical sector in today's economy. Despite recent stock troubles, Buffett remains optimistic about the future of Occidental, as indicated by his persistent investment strategy. This investment aligns with Berkshire's broader portfolio, which includes substantial preferred stock holdings in Occidental and warrants that allow for additional equity acquisition. Berkshire's ongoing financial backing showcases its confidence in Occidental's long-term viability, regardless of short-term market fluctuations. The strategic purchases signify a tactical approach to capitalizing on market disparities, reflecting Buffett's well-known investment philosophy that emphasizes value buying during downturns. Therefore, while the current environment may pose challenges, the long-term outlook for both Berkshire and Occidental appears strategically aligned for growth and potential recovery.