How Many Shares of Occidental Petroleum Does Berkshire Hathaway Own? A Deep Dive into Buffett's Big Energy Bet
Have you ever wondered what the "Oracle of Omaha," Warren Buffett, is buying for his legendary conglomerate, Berkshire Hathaway? It's a question that captivates investors worldwide, and right now, one of the most intriguing answers is Occidental Petroleum (OXY). If you're ready to uncover the details of this significant investment, you've come to the right place. Let's embark on a step-by-step journey to understand exactly how much OXY Berkshire Hathaway owns and why it's such a key part of their portfolio.
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| How Many Shares Of Oxy Does Berkshire Hathaway Own |
Step 1: Get in the Know – Why is this important to you?
First and foremost, let's engage with the topic. Why should you care about Berkshire Hathaway's stake in OXY? It's simple. When Warren Buffett and his team at Berkshire Hathaway make a move, the market pays attention. Their investment decisions are seen as a powerful vote of confidence, backed by meticulous research and a long-term value-investing philosophy. Understanding their position in Occidental Petroleum can provide valuable insights into the energy sector and serve as a case study for your own investment strategies. Whether you're a seasoned investor or just starting, tracking these moves can be incredibly educational.
So, let's dive into the specifics.
Step 2: Tracking the Numbers - The Latest Holdings
To find out how many shares Berkshire Hathaway owns, we need to look at the most recent public disclosures. The key sources are Berkshire Hathaway's own filings with the U.S. Securities and Exchange Commission (SEC), particularly the Form 13F and Form 4 filings.
Sub-heading: Understanding SEC Filings
Form 13F: This is a quarterly report filed by institutional investment managers with assets under management of over $100 million. It provides a snapshot of their holdings at the end of the quarter.
Form 4: This is a filing required when a company insider (like a director, officer, or in this case, a major shareholder like Berkshire Hathaway) buys or sells shares in their own company. These filings provide real-time updates on their trading activity.
As of the most recent data available, which reflects filings in early 2025, Berkshire Hathaway's ownership in Occidental Petroleum is substantial and has been growing.
Tip: Take your time with each sentence.
As of early 2025, Berkshire Hathaway owned approximately 264.9 million shares of Occidental Petroleum's common stock. This has been a consistently growing position, with Buffett's company adding to its stake through multiple purchases over the past few years.
This massive stake makes Berkshire Hathaway the single largest shareholder of Occidental Petroleum, owning a significant portion of the company's outstanding shares.
Step 3: Beyond the Common Stock - The Full Picture
It's not just about the common shares. The true extent of Berkshire's investment in Occidental Petroleum is even larger when you consider other financial instruments.
Sub-heading: Preferred Stock and Warrants
Back in 2019, when Occidental Petroleum was looking to acquire Anadarko Petroleum, Berkshire Hathaway provided a crucial $10 billion in financing. This wasn't just a simple loan. Berkshire received:
$10 billion in preferred stock: This is a special class of stock that pays a guaranteed, high dividend. It’s like a very secure, high-yield bond with an equity kicker.
Warrants to purchase additional shares: These warrants give Berkshire the right to buy up to 83.9 million more shares of Occidental Petroleum's common stock at a strike price of $59.62 per share.
While Berkshire has been consistently buying common shares on the open market, these warrants and the preferred stock represent a deeper, long-term commitment to the company. The preferred stock provides a steady stream of income, while the warrants offer a substantial upside if OXY's stock price rises above the strike price. This layered investment shows the strategic depth of Buffett's play.
Step 4: The 'Why' Behind the Buy - Berkshire's Investment Thesis
So, why is Buffett so bullish on OXY? It's a combination of factors that align with his core investment principles.
Tip: Every word counts — don’t skip too much.
Sub-heading: Value and Cash Flow Generation
Strong Cash Flow: Occidental Petroleum has a proven ability to generate significant cash flow, especially in a favorable oil price environment. This cash flow allows them to reduce debt, pay dividends, and invest in their business.
Strategic Assets: The company holds valuable assets, particularly in the Permian Basin, a prolific oil and gas region. This provides a strong foundation for future production and profitability.
Debt Reduction: A key focus for Occidental Petroleum has been paying down the debt it took on for the Anadarko acquisition. Buffett has praised CEO Vicki Hollub for her commitment to this goal. As the company reduces its debt, it becomes a financially stronger and more resilient entity.
Unconventional Play: It's also worth noting that Berkshire's stake is so large that it has secured regulatory approval to acquire up to 50% of Occidental. While Buffett has stated he has no intention of a full takeover, this approval gives Berkshire immense flexibility and influence.
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Step 5: Putting it all together - What's the total value?
While the number of shares is a key metric, the value of the holding is equally important. Based on the share count and the recent stock price of Occidental Petroleum (which fluctuates), the value of Berkshire Hathaway's stake is in the range of $11 billion to $13 billion. This makes Occidental Petroleum one of Berkshire's largest public equity holdings, a testament to its significance in the portfolio.
10 Related FAQ Questions
How to find the latest Berkshire Hathaway holdings?
You can find the latest holdings by checking the SEC's EDGAR database for Berkshire Hathaway's Form 13F and Form 4 filings. Major financial news websites also publish updates based on these filings.
How to interpret a Form 13F filing?
A Form 13F lists the equity holdings of a large institutional investor at the end of a calendar quarter. It shows the number of shares, the market value, and the company name. It's a snapshot, not a live feed, so remember the data is a few weeks old by the time it is released.
Tip: Remember, the small details add value.
How to understand the difference between common stock and preferred stock?
Common stock represents ownership and voting rights in a company, with a variable dividend. Preferred stock generally doesn't have voting rights but pays a fixed, often higher, dividend and has a senior claim on a company's assets and earnings compared to common stock.
How to get the most up-to-date information on Berkshire's purchases?
The most up-to-date information comes from Form 4 filings, which are filed within two business days of a transaction. These are a great way to see if Berkshire is adding to its position.
How to analyze an investment like Warren Buffett?
Buffett's philosophy is rooted in "value investing." He looks for companies with a durable competitive advantage (a "moat"), strong management, and predictable earnings, all while buying at a reasonable price.
How to know if Berkshire Hathaway will acquire Occidental Petroleum?
While Berkshire has regulatory approval to own up to 50%, Warren Buffett has repeatedly stated that he has no intention of acquiring the entire company. His focus appears to be on the investment, not the operation.
QuickTip: Repeat difficult lines until they’re clear.
How to learn about the energy sector's influence on OXY's stock price?
Occidental Petroleum's stock price is highly correlated with the price of crude oil and natural gas. You can track oil price movements (like West Texas Intermediate or Brent Crude) to understand a major driver of OXY's stock.
How to assess Occidental Petroleum's financial health?
You can assess its health by looking at its balance sheet, particularly its debt levels, its cash flow from operations, and its capital expenditures, which are all reported in its quarterly and annual reports.
How to understand the purpose of warrants in an investment?
Warrants give the holder the right, but not the obligation, to buy a certain number of shares at a specific price (the strike price) before a certain date. They are a tool for investors to gain leverage and potential upside without the immediate capital outlay of buying the shares.
How to know which other companies Berkshire Hathaway owns?
You can view Berkshire Hathaway's entire portfolio by looking at their quarterly 13F filings. Their largest holdings typically include Apple, American Express, Coca-Cola, and Chevron, among others.
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