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Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) has purchased one other 9.6M shares of Occidental Petroleum (NYSE:OXY) over the previous week, elevating its whole holdings within the inventory to 16.3%.
Berkshire (BRK.A) (BRK.B) now owns 152.7M Occidental (OXY) shares value ~$8.52B primarily based on Wednesday’s closing value, which has dropped greater than 20% because it touched its excessive for the yr in Might however up greater than 90% YTD.
Berkshire (BRK.A) (BRK.B) is Occidental’s (OXY) largest particular person shareholder and owns choices to purchase 83.9M OXY shares, which if exercised would elevate its stake above 25%.
Analysts have seen Occidental (OXY) as a method for Berkshire to profit from rising oil costs following Russia’s invasion of Ukraine, in line with Reuters.
With a 60% ratio of debt plus most popular share to capital, Occidental (OXY) carries substantial stability sheet threat compared to shut friends, making the possibilities of Buffett going for an outright acquisition of the corporate as unlikely, Dilantha De Silva writes in an evaluation posted lately on In search of Alpha.
