Every time Occidental Petroleum dips, Berkshire Hathaway buys more.
Just recently, OXY dropped to $61 support from about $70, where Warren Buffett’s firm bought even more. In fact, since June 13, the firm bought another 2.9 million shares for about $173 million. That now means Berkshire holds 255.3 million shares, or about 29% of the company.
As noted by Barron’s, “Berkshire paid just under $60 a share for the latest purchases and has paid $60 or less for the round of purchases over nine days so far in June. Berkshire generally has paid under $60 a share for its entire stake.”
And they may not be done buying.
With no intention of owning the company, the firm is allowed to buy up to 50% of OXY.
One of the biggest reasons for the buying spree is Buffett’s belief OXY is being run the “right way,” he mentioned to CNBC. “I read every word [of its earnings call], and said this is exactly what I would be doing.”
Last trading at $61.13, we’d like to see it retest $70 again short term.
Helping, Morgan Stanley just upgraded OXY to an overweight rating, with a price target of $90.