Warren Buffett Continues Strong Support for Occidental Petroleum

Warren Buffett's multi-year buying spree in Occidental Petroleum is noteworthy. His investment strategy indicates confidence in the company's future, potentially impacting stock prices positively.

Date: 01-03-2025

AI Rating: 7

Earnings and Investment Trends: The report highlights Warren Buffett's significant investment in Occidental Petroleum, indicating a strong endorsement from one of the most respected investors in the market. Buffett initiated a stake in Occidental in the third quarter of 2019 and reinforced this commitment by purchasing shares consistently since the first quarter of 2022, except for specific quarters. Currently, Berkshire Hathaway owns over 264.9 million shares of Occidental, valued at approximately $13 billion, making it a major component of its portfolio.

What Attracts Buffett: Buffett's interest in Occidental appears to stem from favorable perceptions of the company's CEO, Vicki Hollub, particularly her focus on carbon capture technology and extensive US oil reserves. This strategic positioning in energy independence and growth potential aligns with Buffett's investment philosophy.

Valuation Insights: The report notes that Occidental trades at only 12.6 times forward earnings, which is appealing compared to the S&P 500 energy sector average of 14.75. This valuation suggests potential growth for investors if the company's carbon capture initiatives are successful.

Stocks: OXY