This year, Warren Buffett has been increasing his stake in Occidental Petroleum. His acquisition of shares in the oil and gas firm began back in 2019. In August, Berkshire Hathaway obtained the necessary regulatory approval to buy up to 50% of Occidental’s common stock.
In 2023, Buffett has put approximately $2.9 billion into Occidental. This figure encompasses about $1.9 billion that Berkshire invested in acquiring 21.4 million shares of the company between July 31 and August 8.
Currently, Occidental stands as Berkshire’s seventh-largest investment, with the conglomerate holding 25.1% of the oil and gas enterprise. Nonetheless, Occidental is not Buffett’s top pick.
That title goes to Apple.
Buffett continues to acquire shares of Occidental
Berkshire’s initial purchase of shares in the tech behemoth occurred in 2016.
Apple now represents the company’s most significant investment, boasting a market valuation nearing $138 billion. Buffett has called Apple “likely the finest business I know across the globe.” However, in recent quarters, Berkshire has offloaded a portion of its Apple shares. Currently, it retains about 5.5% of all outstanding shares of the tech giant.
Buffett’s second-favorite stock is Bank of America, which ranks as Berkshire’s second-largest holding, valued close to $33 billion. While Buffett has not increased his stake in the bank during 2023, he has been a long-time supporter of its operations.
This year, Occidental Petroleum has outperformed both Apple and Bank of America in returns. Its stock has surged by over 40%, in contrast to the respective increases of around 10% and 5% for Apple and Bank of America. Should Buffett persist in buying more shares of Occidental, it may evolve into an even greater success story.
