Welcome! Are you ready to dive into the fascinating world of Warren Buffett's investment in Occidental Petroleum? This is a topic that has captured the attention of investors and market watchers worldwide, and for good reason. Understanding the nuances of this stake can provide incredible insights into Berkshire Hathaway's investment philosophy.
So, let's get started on this detailed, step-by-step journey to unravel the truth behind Berkshire's ownership of Occidental Petroleum.
Step 1: The First Spark - A Deal in 2019
Before we get to the current share count, let's rewind a bit. Do you remember the bidding war for Anadarko Petroleum in 2019? Occidental Petroleum (OXY) and Chevron were in a heated race to acquire the company. This is where Berkshire Hathaway first entered the picture in a major way.
Occidental Petroleum needed a significant amount of capital to finance the acquisition. And who did they turn to? The Oracle of Omaha himself, Warren Buffett. Berkshire Hathaway provided $10 billion in financing to Occidental in the form of preferred stock. This wasn't just a simple loan; it was a deal with some juicy terms. As part of the agreement, Berkshire also received warrants to purchase 83.9 million shares of OXY common stock at a strike price of $59.62 per share.
This initial transaction laid the groundwork for the massive stake Berkshire Hathaway would build in the years to come.
 |
| How Many Shares Of Occidental Petroleum Does Berkshire Hathaway Own |
Step 2: The Shopping Spree Begins - Building the Common Stock Position
Tip: Read mindfully — avoid distractions.
After the initial deal, Berkshire Hathaway began to consistently accumulate shares of Occidental Petroleum's common stock. This wasn't a one-time purchase but a sustained and often aggressive buying spree.
Sub-heading: A Look at the Buying Pattern
Following the initial preferred stock deal, Buffett and his team began buying common shares in 2022. They were drawn to the company as oil and gas prices surged, and the company started to pay down the heavy debt it had accumulated. Berkshire's purchases were often disclosed in SEC filings, and each one seemed to grab headlines.
Here's a breakdown of the key factors that drove the buying:
Buffett's Conviction: Warren Buffett himself has stated publicly that he likes the company's management and its assets. He reportedly read the transcript of an earnings call and felt that Occidental's strategy aligned perfectly with what he would be doing. This deep conviction is a hallmark of Buffett's investment style.
The Energy Market: The surge in commodity prices, particularly oil, created a windfall of cash for Occidental, allowing it to pay down debt and improve its financial health. This made the company a much more attractive investment.
A "Forever" Stock? While Buffett has stated that Berkshire has no interest in taking control of the company, he has also hinted that Occidental Petroleum could be a stock that Berkshire owns for a very long time.
Step 3: The Current Count - How Many Shares Does Berkshire Hathaway Own?
Now for the big question! As of the most recent public filings and available data (which are updated regularly through SEC filings), Berkshire Hathaway's ownership of Occidental Petroleum has continued to grow.
Tip: Don’t skim — absorb.
Based on filings and publicly available data, as of late 2024 and early 2025, Berkshire Hathaway owns a massive stake in Occidental Petroleum.
The most recent reports indicate that Berkshire Hathaway holds over 265 million shares of Occidental Petroleum common stock.
This substantial position translates to a significant ownership percentage of the entire company.
Sub-heading: The Power of the Stake
 |
With over 265 million shares, Berkshire Hathaway's stake in Occidental Petroleum represents over 28% of the company's outstanding shares.
This makes Berkshire Hathaway the largest shareholder by a significant margin.
It is important to remember that this number is not static. Berkshire Hathaway regularly adds to its position, and you can track their purchases through Form 4 filings with the U.S. Securities and Exchange Commission (SEC). These filings are required when an investor owns more than 10% of a company and makes a transaction.
QuickTip: Stop scrolling fast, start reading slow.
Step 4: Beyond the Common Stock - The Preferred Shares and Warrants
The common stock is just one part of the story. Remember those preferred shares and warrants from Step 1? They are still a key component of Berkshire's position.
Preferred Stock: Berkshire Hathaway still holds the $10 billion in preferred stock. This preferred stock pays a very attractive dividend, providing a steady stream of income for Berkshire.
Warrants: The warrants give Berkshire the right, but not the obligation, to purchase another 83.9 million shares of OXY common stock at a price of $59.62 per share. If Berkshire were to exercise all of these warrants, their total ownership in Occidental Petroleum could jump even higher, potentially exceeding 40% of the company.
Step 5: The Big Picture - Why This Matters
So, why does this all matter? Berkshire Hathaway's significant investment in Occidental Petroleum is a major vote of confidence from one of the world's most respected investors. It signals that Buffett sees long-term value in the energy sector and specifically in Occidental's business model and assets.
This investment also diversifies Berkshire's portfolio, adding a large position in a cyclical industry. It's a classic Buffett move: finding a solid company with good management and a strong business at a price he finds attractive and then building a massive, long-term position.
Tip: Pause, then continue with fresh focus.
10 Related FAQ Questions
How to find the most recent share count for Berkshire Hathaway's Occidental Petroleum holdings? You can find the most recent share count by checking Berkshire Hathaway's SEC filings, specifically their quarterly 13F filings, and any Form 4 filings that disclose recent transactions.
How to track Warren Buffett's stock purchases? You can track Warren Buffett's stock purchases by monitoring SEC Form 4 filings for companies where Berkshire Hathaway owns a significant stake (over 10%). Financial news outlets and investment websites also report on these filings.
How to understand the difference between common stock and preferred stock? Common stock represents ownership in a company and gives you voting rights, while preferred stock typically does not have voting rights but pays a fixed dividend that is paid before common stock dividends.
How to interpret a large investment from Berkshire Hathaway? A large investment from Berkshire Hathaway is often seen as a sign of confidence in a company's long-term value, management, and business model.
How to calculate the percentage of a company's shares an investor owns? To calculate the percentage of shares owned, you divide the number of shares owned by the total number of outstanding shares and multiply by 100.
How to find out about Berkshire Hathaway's other stock holdings? You can find out about Berkshire Hathaway's other stock holdings by reviewing their quarterly 13F filings, which list their entire portfolio of publicly traded U.S. stocks.
How to understand what a stock warrant is? A stock warrant is a long-term option to buy a company's stock at a predetermined price. It is often issued as a sweetener to a financing deal.
How to know if a company is a good investment? There are many factors to consider, including a company's financials, management, industry, competitive advantages (moat), and valuation. It is essential to conduct your own due diligence.
How to learn more about Warren Buffett's investment philosophy? You can learn more about his philosophy by reading his annual letters to shareholders, watching interviews, and studying his book, The Essays of Warren Buffett.
How to determine if Occidental Petroleum stock is a good buy for me? Determining if OXY is a good buy requires you to do your own research. You should consider your personal financial goals, risk tolerance, and time horizon. This post is for informational purposes and not financial advice.
 |
