Berkshire Hathaway Continues To Accumulate OXY -- August 9, 2022

Updates 

September 12, 2022: Buffett adds to his OXY position. 

August 20, 2022: Buffett, OXY, memes and moats. 

August 19, 2022: FERC gives green light to Berkshire Hathaway to buy up to 50% of OXY. A reader asked about my thoughts. My reply at this post.

August 9, 2022: OXY surges on news that Berkshire Hathaway continues to accumulate shares of OXY. 

August 9, 2022:

"Yesterday, Warren Buffett's Berkshire Hathaway bought 6.68 milllion OXY shares worth $390.68 million."

July 11, 2022: From TipRanks:   

"Warren Buffett has been steadily accumulating OXY stock for quite some time now, and if speculations are to be believed, Berkshire Hathaway may end up buying the oil and gas major."

Original Post
Previously Posted
July 19, 2022

Walking back from the pool today, I had this thought.

Take a look at the Buffett portfolio. Without question, this is a most boring, incredibly ugly-looking portfolio of any I've seen. Sure, it has 52 stocks but only two or three will move the needle. [Later, 2Q22: wow, look at this -- that portfolio is horrendous. For 2Q22: 

Berkshire Hathaway (BRK-A / BRK-B) slipped to a loss of over $43.7 billion in the second quarter versus a profit of over $28 billion in the same quarter of 2021.

Then look at this, a "fantasy" energy ETF. 

Right now, at this point in time, what portfolio would you rather have, the Buffett portfolio or the fantasy energy ETF?

Previously posted:

My hunch: Buffett thinks about this every waking moment and in his dreams:

• in round numbers, he owns 20% of OXY, and possibly more if one throws in warrants, etc; and,
• despite owning all that OXY, it still represents only 2.8% of his total portfolio (not including BRK shares)
• in other words, for all the OXY he has bought and all the ink spilled on his obsession with OXY, it doesn't amount to a heck of a lot in the big scheme of things (yet);
  
• he could sell forty of his "non-exciting" tickers and buy all of OXY at a huge discount right now

More than a hunch:

• next Monday morning we're going to read in the morning paper that Warren Buffett has bought OXY
• for all the reasons above
• in addition, this is his last "hurrah" -- he's nearing the end of his life and he wants to do one more big deal;
•  energy is going to be the "story" of the 21st century
• like the railroads, there's only a handful of majors -- practically monopolies
  
• Vicki Hollub has been an outstanding CEO and is ready to do another big deal also
• Warren is a great guy to work for; he owns the company but allows the company to be pretty autonomous; certainly Buffett is not going ot personally run OXY
• he and Ms Hollub certainly have a great relationship

So, that's what I was thinking. I wouldn't have posted that, but when I got home I checked my twitter feed and lo and behold, link here:

From the linked article:

July 19, 2022: BRK purchased another 1.94 million shares of OXY giving the company (BRK) an $11.4 billion stake and putting it nearer a threshold where it could record some of the oil company's earnings with its own.