Of course! Let's dive into the fascinating story of Berkshire Hathaway's significant investment in Occidental Petroleum. It's a topic that has captivated the financial world, and you're in the right place to get a detailed breakdown.
A Deep Dive into Berkshire Hathaway's Occidental Petroleum Holdings: A Step-by-Step Guide
Hello there, and welcome! Are you curious about one of Warren Buffett's most talked-about recent investment moves? The legendary "Oracle of Omaha" and his company, Berkshire Hathaway, have been on a buying spree with shares of Occidental Petroleum (OXY), an oil and gas giant. If you've been following the market, you know this isn't a small position – it's a massive, multi-billion-dollar stake. So, let's embark on this journey together and uncover exactly how much OXY stock Berkshire Hathaway owns, why they're so interested, and what it all means.
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| How Much Oxy Stock Does Berkshire Hathaway Own |
Step 1: Understanding the Foundation of the Investment
Before we get to the exact numbers, it's crucial to understand how and when this relationship began. It wasn't a typical stock purchase. This story is a perfect example of Buffett's opportunistic and sometimes complex investment style.
It all started in 2019 when Occidental Petroleum was in a fierce bidding war to acquire Anadarko Petroleum. To finance the deal, Occidental needed a significant cash infusion. That's when they turned to Berkshire Hathaway.
QuickTip: Stop scrolling, read carefully here.
The Preferred Stock Deal: Berkshire Hathaway provided Occidental with $10 billion in financing in the form of preferred stock. This wasn't common stock; it was a special class of stock that came with a very attractive benefit for Berkshire: a juicy 8% annual dividend. This translates to a cool $800 million per year in dividend payments.
The Warrants: But that wasn't all. As part of this deal, Berkshire also received warrants to buy an additional 83.9 million shares of common stock at a strike price of $59.62 per share. These warrants essentially gave Berkshire the right, but not the obligation, to buy OXY common stock at that specific price within a certain timeframe.
This initial investment was a classic Buffett move – providing a lifeline to a company in need at a time when others were hesitant, and getting a great return and potential upside in the process.
Step 2: The Common Stock Buying Spree
Now, here's where the story gets really interesting. While the preferred stock and warrants were a great deal, Buffett's real conviction in OXY became clear in 2022. Beginning in early 2022, Berkshire Hathaway started aggressively buying up common shares of Occidental Petroleum in the open market.
A Rapidly Growing Position: This was no small, passive investment. Berkshire was buying millions of shares, day after day, in filings that became regular market headlines. In just a few months, their position grew from nothing to a significant stake.
The 2024 and 2025 Acquisitions: This buying activity has continued. Public filings show that Berkshire has consistently added to its position throughout 2024 and into 2025, solidifying its status as a major shareholder. For example, in December 2024, Berkshire purchased another $409 million in OXY stock. In February 2025, they bought another 763,017 shares. And in June 2025, they were still adding to the position, buying millions of more shares.
Why this sudden and aggressive interest in OXY's common stock? According to Buffett, he was impressed after reading one of Occidental's earnings call transcripts. He saw a management team that was focused on a strategic plan he wholeheartedly agreed with: paying down debt, increasing production, and focusing on efficiency. He reportedly said, "This is exactly what I would be doing."
Step 3: Pinpointing the Current Ownership (As of Mid-2025)
QuickTip: Reflect before moving to the next part.
This is the key question, and the answer can be found in the regulatory filings that Berkshire Hathaway makes with the Securities and Exchange Commission (SEC). These filings, such as the 13F and 13G forms, provide a snapshot of their holdings.
The Latest Disclosures: As of late 2024 and early 2025, and with continuous buying into mid-2025, Berkshire Hathaway has a massive holding in Occidental Petroleum. Recent filings indicate that Berkshire owns well over 250 million shares of OXY common stock.
The Ownership Percentage: This significant share count translates to a huge percentage of the company's total outstanding shares. Berkshire Hathaway’s stake in Occidental Petroleum is now approaching 30% of the company's outstanding common stock. This makes Berkshire Hathaway by far the largest shareholder of Occidental Petroleum.
The Preferred Stock and Warrants: Don't forget the original deal! Berkshire still holds the preferred stock and the warrants. While the warrants haven't been exercised as of my last update, if they were, Berkshire's ownership stake could climb even higher, potentially exceeding 40%. However, Buffett has stated he does not intend to take control of the company.
It's important to remember that these numbers can change slightly as Berkshire continues to buy or sell shares, but the overall trend has been one of continuous accumulation.
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Step 4: The Value of the Stake
So, what is this massive holding worth? The value of Berkshire's stake fluctuates with the market price of OXY stock.
A Multi-Billion Dollar Position: At current market prices, Berkshire Hathaway's common stock holding in Occidental Petroleum is valued at over $15 billion. This makes it one of Berkshire's largest publicly traded stock holdings, right up there with giants like Apple, Bank of America, and American Express.
A "Forever" Stock? Interestingly, Warren Buffett has even hinted that Occidental Petroleum could be one of the stocks that Berkshire holds "indefinitely." This is a powerful statement from a man known for his long-term buy-and-hold philosophy.
Berkshire's total investment in Occidental Petroleum, including the preferred stock, represents a major commitment to the energy sector and specifically to the long-term prospects of OXY.
QuickTip: Read again with fresh eyes.
Step 5: Looking Ahead
The investment community is constantly watching Berkshire's moves, and the OXY position is no exception.
Why it Matters: Berkshire's continued buying of OXY shares sends a strong signal to the market. It suggests that despite the volatility of oil prices, Buffett sees significant value and a strong future for Occidental Petroleum.
What to Watch For: Keep an eye on Berkshire's quarterly 13F filings to see if they continue to add to their position. Also, pay attention to any news regarding the potential exercise of the warrants, which would further increase their ownership.
The investment in Occidental Petroleum is a testament to Warren Buffett's faith in the company's management, its strategic direction, and its ability to thrive in a cyclical industry. It's a prime example of his legendary "be greedy when others are fearful" approach.
Related FAQ
Here are 10 frequently asked questions about Berkshire Hathaway's investment in Occidental Petroleum, with quick, easy-to-understand answers.
How to find the latest Berkshire Hathaway stock holdings? You can find the latest stock holdings by checking Berkshire Hathaway's quarterly 13F filings with the U.S. Securities and Exchange Commission (SEC).
QuickTip: Pause to connect ideas in your mind.
How to interpret Warren Buffett's investment in OXY? Buffett's investment in OXY can be interpreted as a strong vote of confidence in the company's management, its strategic plan to reduce debt and improve efficiency, and its long-term potential in the energy sector.
How to calculate the value of Berkshire's OXY stake? To calculate the value, you multiply the number of shares Berkshire owns by the current market price of Occidental Petroleum stock (OXY).
How to buy Occidental Petroleum stock? You can buy OXY stock through any brokerage platform or investment app that offers access to the NYSE.
How to understand the difference between common and preferred stock? Common stock represents ownership in a company with voting rights, while preferred stock typically does not have voting rights but pays a fixed dividend and has a higher claim on assets than common stock.
How to know if Berkshire Hathaway will take over Occidental Petroleum? While Berkshire's stake is large, Warren Buffett has stated he does not intend to take control of the company. However, the regulatory approval to buy up to 50% gives them that option.
How to track Occidental Petroleum's debt reduction progress? You can track Occidental Petroleum's debt reduction by reviewing their quarterly earnings reports and investor presentations, where they typically provide updates on their financial position and deleveraging strategy.
How to understand the warrants Berkshire Hathaway owns? The warrants give Berkshire the right to buy OXY common stock at a set price ($59.62) for a specific period. If the stock price goes above this level, the warrants become valuable.
How to learn about Occidental Petroleum's carbon capture initiatives? You can learn about OXY's carbon capture initiatives by visiting the company's official website, particularly their investor relations or sustainability sections, or by reading their press releases and annual reports.
How to get more information on Warren Buffett's investment philosophy? You can gain a deeper understanding of Warren Buffett's investment philosophy by reading his annual letters to shareholders, watching his interviews, and studying his major investment moves over the years.
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