Buffett adds to Occidental stake with buys of another 9.6M shares (NYSE:OXY)

Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) has bought another 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 12 months in Could 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 approach for Berkshire to learn from rising oil costs following Russia’s invasion of Ukraine, in response to Reuters.

With a 60% ratio of debt plus most popular share to capital, Occidental (OXY) carries substantial steadiness sheet danger 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 analysis posted recently on Seeking Alpha.