How Much Oxy Does Berkshire Hathaway Own? A Deep Dive into Warren Buffett's Energy Play
Hello there! Ever wondered about the inner workings of Warren Buffett's legendary investment portfolio? You've come to the right place. We're going to dive deep into one of his most talked-about holdings: Occidental Petroleum (OXY). It's a fascinating story of a large-scale investment, a high-stakes deal, and a long-term vision. So, let's get started on our journey to understand exactly how much Oxy Berkshire Hathaway owns, and why.
Step 1: The First Spark - A High-Stakes Bet
Do you know what it takes to make a $10 billion investment in a company? It takes a keen eye and a lot of confidence. The story begins in 2019, when Occidental Petroleum was in a heated bidding war to acquire Anadarko Petroleum. To help finance the deal, Occidental needed a significant amount of capital. Enter Warren Buffett and Berkshire Hathaway.
Berkshire Hathaway stepped in to provide $10 billion in financing to Occidental. This wasn't a simple stock purchase; it was a deal for preferred stock and warrants. This was the foundation of Berkshire's involvement, giving them a strong foothold and a potential for future growth in the company. The preferred stock came with a generous 8% annual dividend, a key detail that made the investment particularly attractive to Buffett.
Step 2: The Accumulation - From Preferred Shares to Common Stock
After that initial investment, Buffett's interest in Occidental Petroleum didn't wane. In fact, it grew significantly, especially in early 2022. This is where the story gets even more interesting and where we start to see the direct ownership of common stock emerge.
Tip: Don’t just glance — focus.
Sub-step 2.1: The Buying Spree Begins
Starting in early 2022, Berkshire Hathaway began to aggressively accumulate common shares of Occidental Petroleum. They were buying up stock on the open market, day after day. This was a clear signal of confidence in the company and its leadership.
Sub-step 2.2: The Numbers Grow
The buying continued steadily throughout 2022, 2023, and into 2024. According to various regulatory filings and news reports, Berkshire's holdings in OXY grew substantially. They were consistently adding to their position, often when the stock price experienced a dip. This aligns perfectly with Buffett's well-known strategy of buying when others are fearful.
By early 2025, Berkshire's ownership had reached a staggering number of shares. As of the most recent filings available, Berkshire Hathaway owns a significant number of shares, pushing their ownership well past the 25% mark.
Step 3: The Current Stake - Breaking Down the Ownership
So, how much Oxy does Berkshire Hathaway own right now? As of early 2025, according to regulatory filings with the SEC, Berkshire Hathaway's stake in Occidental Petroleum is immense.
As of early 2025, Berkshire Hathaway owns over 327 million common shares of Occidental Petroleum.
This represents a remarkable ownership percentage of approximately 34% of the company's outstanding shares.
Tip: Watch for summary phrases — they give the gist.
But wait, there's more! Don't forget about those warrants from the initial 2019 deal. Berkshire also holds warrants to buy another 83.9 million shares at a fixed price of $59.62 per share. If Berkshire were to exercise these warrants, their total share count would increase even further, and their ownership percentage would be well over 40%.
Step 4: The 'Why' - What Drives Buffett's Investment?
It's clear that Berkshire owns a huge chunk of Occidental Petroleum, but the question remains: Why? Warren Buffett has been quite vocal about his reasons.
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Sub-step 4.1: Confidence in Management
Buffett has expressed great admiration for Occidental's CEO, Vicki Hollub. He's been quoted saying that he read the transcript of one of the company's earnings calls and was so impressed that he started buying shares. He particularly likes their focus on reducing debt and their strategy for the company's future.
Sub-step 4.2: The U.S. Energy Story
Buffett is bullish on the U.S. energy sector. He sees the importance of domestic oil and gas production for the country's energy independence. Occidental's vast holdings in the Permian Basin and its focus on carbon-capture initiatives align with this long-term vision.
Sub-step 4.3: A Strategic and Unconventional Play
While Berkshire owns other major energy companies like Chevron, the Occidental investment is different. It's a deeper, more concentrated bet on an "aggressive upstream producer." Despite the unconventional nature of the investment compared to some of his other holdings like Coca-Cola or American Express, it demonstrates a strategic confidence in a vital, cyclical industry.
Tip: A slow skim is better than a rushed read.
Step 5: The Future Outlook - What's Next?
Buffett has stated that Berkshire has no interest in purchasing or managing Occidental. This is a crucial point. He's not trying to take over the company; he simply likes the investment as a significant holding in his portfolio. The continued debt reduction by Occidental and its efforts to grow free cash flow are key factors that will likely influence the value of Berkshire's stake going forward.
The future of this investment will depend on several factors, including oil prices, Occidental's performance, and Buffett's continued conviction in the company. For now, it remains a cornerstone of the Berkshire Hathaway portfolio, a testament to a legendary investor's belief in a company and an industry.
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| How Much Oxy Does Berkshire Hathaway Own |
10 Related FAQs
How to find the latest Berkshire Hathaway holdings? You can find the latest holdings by looking at Berkshire Hathaway's quarterly 13F filings with the U.S. Securities and Exchange Commission (SEC). These filings disclose their equity holdings.
How to interpret Warren Buffett's investment in Occidental Petroleum? It can be interpreted as a strong vote of confidence in the company's management, its assets, and the long-term outlook for the U.S. oil and gas industry. It's a strategic, value-oriented investment.
How to understand the difference between common and preferred stock? Common stock gives you ownership and voting rights, while preferred stock is more like a hybrid of a stock and a bond, often offering a fixed dividend payment and a higher claim on a company's assets than common stock.
Tip: Absorb, don’t just glance.
How to calculate the value of Berkshire Hathaway's OXY stake? You can calculate the value by multiplying the number of shares they own by the current market price of Occidental Petroleum's stock.
How to know if Berkshire Hathaway is buying or selling OXY shares? Because Berkshire Hathaway owns more than 10% of Occidental Petroleum, they are required to disclose purchases or sales within two business days through Form 4 filings with the SEC.
How to see the history of Berkshire Hathaway's OXY purchases? You can track the purchase history through the Form 4 and 13F filings available on the SEC's EDGAR database or on financial data websites that compile this information.
How to understand the warrants Berkshire Hathaway owns? The warrants give Berkshire the option to buy a certain number of shares at a specific "strike price." They can choose to exercise this option, but they are not obligated to do so.
How to know if Warren Buffett will buy out Occidental Petroleum? Warren Buffett has publicly stated that Berkshire Hathaway has no interest in buying out or managing Occidental Petroleum, even with their significant ownership stake.
How to compare Berkshire's OXY holding to their other investments? While the OXY stake is large, it is one of Berkshire's top holdings, alongside giants like Apple, Bank of America, and Coca-Cola. It is a more concentrated bet in a cyclical industry compared to some of their other, more diversified holdings.
How to find information on Occidental Petroleum's debt reduction? You can find information on Occidental Petroleum's debt reduction efforts in their quarterly and annual financial reports (10-Q and 10-K filings) and their earnings call transcripts.
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