Core Insights - Warren Buffett's continued investment in Occidental Petroleum indicates confidence in the company's potential despite broader market challenges [1][12][17] Company Overview - Berkshire Hathaway has increased its stake in Occidental Petroleum to over 260 million shares, valued at over $12 billion, making it the conglomerate's sixth-largest stock holding [2] - Under CEO Vicki Hollub's leadership, Occidental is recognized for its operational expertise in fracking, which is considered a valuable skill in the current energy landscape [3][8] Industry Context - The oil and gas sector is not on the verge of obsolescence, as evidenced by the U.S. Energy Information Administration reporting that 60% of the country's electricity still comes from fossil fuels [9][14] - Goldman Sachs projects that global oil demand will continue to grow, potentially peaking at 110 million barrels per day by 2035, with OPEC not expecting "peak oil" until 2050 [15] Investment Rationale - Occidental is positioned to benefit from the anticipated growth in the carbon-capture industry, which is expected to grow at an annualized rate of 22% through 2033 [5] - The company's stock is currently priced 30% below its consensus price target of $61.48, suggesting potential for appreciation [6] Strategic Moves - Occidental is divesting non-core assets to focus on its primary business, enhancing its operational efficiency [8] - The majority of Occidental's projects are strategically located in the Permian Basin, providing access to essential infrastructure [13]

Warren Buffett's company, Berkshire Hathaway (BRK.A 1.37%) (BRK.B 0.86%), can't seem to get enough of Occidental Petroleum (OXY 3.90%). The conglomerate recently purchased another 8.9 million shares of the oil company for $405 million. Buffett's company now owns over 264 million shares worth almost $12.5 billion, totaling more than 28% of Occidental's outstanding shares. Here's a look at the likely factors driving Berkshire Hathaway to scoop up so much of the oil stock and some things to consider before you ...

Group 1: Investment Strategy - Warren Buffett is a value investor focusing on undervalued businesses with solid fundamentals and a competitive advantage [1] - Throughout 2024, Buffett and Berkshire Hathaway have been net sellers, indicating a bearish outlook despite holding a record cash position [1] Group 2: Recent Investments - Buffett made significant investments in Occidental Petroleum, purchasing 8,896,890 shares valued at approximately $409.15 million between December 17 and December 19, with prices ranging from $45.54 to $46.91 per share [13] - Buffett also invested $107.23 million in SiriusXM, acquiring 4,963,844 shares at prices between $20.84 and $22.49 during the same period [6] - Additionally, a $45.4 million investment was made in Verisign, purchasing 234,312 shares from December 17 to December 19 [9] Group 3: Company Performance - Occidental Petroleum's stock is down 22.20% year-to-date but has beaten earnings expectations for three consecutive quarters [4] - SiriusXM has experienced a significant decline of 59.26% in share value since the beginning of the year, yet it holds a unique position as the only licensed satellite radio operator in the U.S. [15]

Shares of Occidental Petroleum Corp (NYSE:OXY) are up 4.4% at $47.36 at last glance, after Warren Buffett's Berkshire Hathaway (BRK) bought an addition 8.9 million shares in the energy producer. This is just one of the conglomerate's moves to buy stocks on the dip after the recent selloff, and Occidental is Berkshire's sixth-largest equity holding. OXY has moved lower since breaking below support at the $50 level earlier this month, and yesterday hit a two-year low of $45.17. The stock's "oversold" conditio ...

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Based on my analysis, I believe in the long-term potential for Occidental Petroleum (NYSE: OXY ). Despite near-term headwinds, OXY's initiatives in margin enhancement can provide significant value to shareholders. Moreover, as the company continues to strengthen its balance sheet, there isWith over 7 years of experience in the buy-side, my investment philosophy is rooted in both fundamental bottom-up analysis and quantitative modelling. My forte lies in identifying perception gaps to capitalize on over-pess ...

Every once in a while, the markets align themselves to offer investors a perfect way to get into a specific sector, with every tailwind behind it coming from other asset classes. Today, there are tailwinds brewing in the spreads between value stocks and growth stocks, which have fallen to a multi-decade low to show investors a potential shift in the market for the coming months. When investors graph out the difference between prices in the iShares S&P 500 Value ETF NYSEARCA: IVE and its distant opposite the ...

The energy sector has been plagued by a difficult few years, with volatile oil prices, extended geopolitical tensions, and a complex dynamic as customers and governments slowly pivot towards renewable forms of generation. Debt levels have always been high inGordon is a freelance investment writer from Glasgow, Scotland. With a Masters Degree in Civil Engineering, he also works in Asset Management, and runs a financial education company called Oak Investing with a wide following across 40 countries. With a p ...

I last covered Occidental Petroleum Corporation (NYSE: OXY ) stock on 10-30-2024. That article was titled "Exxon Mobil Is Both Cheaper And Better Than Occidental Petroleum" as you can see from As you can tell, our core style is to provide actionable and unambiguous ideas from our independent research. If your share this investment style, check out Envision Early Retirement. It provides at least 1x in-depth articles per week on such ideas.We have helped our members not only to beat S&P 500 but also avoid hea ...

Core Viewpoint - Warren Buffett's investment strategy focuses on long-term value investing, which has led to consistent outperformance of the market, although not all investments have been successful [1][2]. Company Analysis: Occidental Petroleum (OXY) - Occidental Petroleum's stock is currently trading at $46.41, reflecting a year-to-date loss of 22.71%, reaching levels not seen since March 2022 [6]. - Buffett first invested in OXY in 2019 and has since increased his stake to 255,281,524 shares, representing approximately 27% of the company [7]. - The original investment of $10 billion was made in preferred stock with an 8% annual yield, providing a steady income stream regardless of stock performance [8]. - Occidental Petroleum has beaten analyst expectations for earnings per share for three consecutive quarters, although revenues have lagged behind forecasts [9][10]. - The company has improved its debt-to-equity ratio from 2.34 five years ago to approximately 1.47, indicating a reduction in debt levels [10]. - OXY stock has an attractive trailing price-to-earnings (P/E) ratio of 13.05 and a forward P/E ratio of 15.07, suggesting it is relatively affordable [10]. - The company benefits from an economic moat due to cost advantages in the Permian basin and vertical integration across upstream, midstream, and downstream operations [11]. - Energy stocks, including Occidental Petroleum, are inherently volatile, influenced by geopolitical instabilities, but may present opportunities for long-term investors [12].