Locator: 47832OXY.
For oil bulls, there are few things more bullish than a story reporting Warren Buffett buying more OXY.
BRK is tracked here.
WTI: a bit volatile in the past two weeks, but WTI is now ... now ... now clearly trending higher, trading above $81 for the first time in a long time (I wonder if CNBC is reporting that -- I'm not watching CNBC today -- reading instead -- ).
OXY / BRK: stakes raised to 29%. Link here.
Berkshire Hathaway has recently bought another nearly 3 million shares in Occidental Petroleum, boosting its stake to almost 29%, Warren Buffett’s conglomerate said in an SEC filing this week.
Over the three trading days to June 17, Berkshire Hathaway acquired as many as 2,947,611 common stock of Oxy, at a price of around $59 each.
Let's see how CNBC is reporting this story:
- every trading day from June 5, 2024 - June 17, 2024
- added an additional 7.3 million shares
- averaged just under $60 / share
- now: 255 million+ shares; a 28.8% stake in the company
- BRK's 6th largest holding
- BRK is OXY's biggest institutional investor by far
- but also, BRK
- owns $10 billion of OXY in preferred stock
- owns warrants to buy another 83.9 million shares for $5 billion, or $59.62 each
Ticker for one year:
BRK is going to need a very, very good year in energy to beat the S&P this year.
But I think BRK can do it:
- tech will correct, bringing the S&P with it (unless the Fed cuts rates more than expected, and the market takes off yet again); and,
- WTI holds above $80 through September, and E&P companies respond in kind.
But it will be close.
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