{"id":1360462,"date":"2022-03-06T07:19:43","date_gmt":"2022-03-06T12:19:43","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1360462"},"modified":"2022-03-06T07:22:51","modified_gmt":"2022-03-06T12:22:51","slug":"berkshire-hathaway-reveals-5-billion-stake-in-occidental-petroleum","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/berkshire-hathaway-reveals-5-billion-stake-in-occidental-petroleum\/","title":{"rendered":"Berkshire Hathaway Reveals $5 Billion Stake in Occidental Petroleum"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fberkshire-hathaway-reveals-5-billion-stake-in-occidental-petroleum%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1360462&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/03\/106950207-1633014775113-gettyimages-849890606-97586248-scaled.jpeg\" class=\"ff-og-image-inserted\" alt=\"image\" \/><\/div>\n<div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\"><\/div>\n<div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\">\n<header id=\"SpecialReportArticle-PageHeaderWithTuneInText-2\" class=\"PageHeaderWithTuneInText-container PageHeaderWithTuneInText-isSpecialReport PageHeaderWithTuneInText-noHeader\" data-test=\"pageHeaderWithTuneInText-0\" data-analytics=\"SpecialReportArticle-pageHeaderWithTuneInText-2-0\">\n<div class=\"PageHeaderWithTuneInText-main\">\n<div class=\"PageHeaderWithTuneInText-title\">Buffett Watch<\/div>\n<\/div>\n<nav class=\"PageHeaderWithTuneInText-subNav\">\n<ul class=\"PageHeaderWithTuneInText-navList\">\n<li class=\"PageHeaderWithTuneInText-navItem\"><a href=\"https:\/\/www.cnbc.com\/berkshire-hathaway-portfolio\/\" class=\"PageHeaderWithTuneInText-navLink\">Berkshire Hathaway Portfolio Tracker<\/a><\/li>\n<\/ul>\n<\/nav>\n<\/header>\n<\/div>\n<div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\">\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\">\n<div class=\"ArticleBody-articleBody\" id=\"SpecialReportArticle-ArticleBody-6\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"SpecialReportArticle-articleBody-6-2\">\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-106950207\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<div class=\"InlineImage-imageEmbedCredit\">Daniel Zuchnik | WireImage | Getty Images<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>In his annual letter to shareholders released less than one week ago, <a href=\"https:\/\/link.cnbc.com\/public\/26846886\" target=\"_blank\" rel=\"noopener\">Warren Buffett complained<\/a> he could &#8220;find little that excites us&#8221; in the equity markets.<\/p>\n<p>However a <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/315090\/000089924322009579\/xslF345X03\/doc4.xml\" target=\"_blank\" rel=\"noopener\">new SEC filing<\/a> from Friday night revealed that someone at Berkshire Hathaway, either Buffett himself or his portfolio managers, is very excited about <a href=\"https:\/\/www.cnbc.com\/quotes\/oxy\">Occidental Petroleum<\/a>.<\/p>\n<p>As of Friday, Berkshire owns 91.2 million common shares of the oil giant. They&#8217;re <a href=\"https:\/\/www.cnbc.com\/berkshire-hathaway-portfolio\/\">worth $5.1 billion<\/a> at tonight&#8217;s close of $56.15. The stock gained 18% today and 45% this week.<\/p>\n<p>It&#8217;s been moving sharply higher along with the price of oil, <a href=\"https:\/\/www.cnbc.com\/2022\/03\/04\/average-national-gasoline-price-surges-to-3point83-a-gallon-the-highest-since-2012.html\">which has soared<\/a> to around $115 barrel in the wake of the <a href=\"https:\/\/www.cnbc.com\/2022\/03\/04\/russia-ukraine-latest-updates.html\">Russian invasion of Ukraine<\/a>.<\/p>\n<p>And as Occidental was rallying, Berkshire was buying.<\/p>\n<p>More than 61 million of the shares now in its portfolio were purchased on Wednesday, Thursday, and today, at prices ranging from $47.07 to $56.45.<\/p>\n<p>The other 29 million shares were purchased this year on or before Tuesday. (Berkshire reported holding no OXY shares as of December 31 in its <a href=\"https:\/\/link.cnbc.com\/public\/26766700\" target=\"_blank\" rel=\"noopener\">latest 13F filing<\/a>.)<\/p>\n<p>Berkshire did not respond Friday night to CNBC&#8217;s request for comment.\u00a0<\/p>\n<p>We don&#8217;t know exactly when it bought, or what Berkshire paid for those 29 million shares, because it had not yet hit the <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/315090\/000089924322009386\/xslF345X02\/doc3.xml\" target=\"_blank\" rel=\"noopener\">10% ownership level<\/a> that requires new purchases be disclosed within day after they are made.<\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"RelatedContent-relatedContent\" id=\"SpecialReportArticle-RelatedContent-1\">\n<div class=\"RelatedContent-container\">\n<div class=\"RelatedContent-nonCollapsibleContent\">\n<h2 class=\"RelatedContent-header\">Stock picks and investing trends from CNBC Pro:<\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Berkshire only owns around 9% of Occidental&#8217;s common shares. But it also has warrants to buy another 83.9 million shares at $59.62.\u00a0<\/p>\n<p>Even though the warrants have not been exercised, for the purposes of the SEC filing trigger they have to be counted, technically putting Berkshire&#8217;s stake at more than 17%.<\/p>\n<p>Berkshire received those warrants as part of a deal that included what was, in effect, a <a href=\"https:\/\/www.cnbc.com\/2019\/04\/30\/buffetts-berkshire-hathaway-to-invest-10-billion-in-occidental-petroleum-for-anadarko-takeover.html\">$10 billion loan in 2019<\/a> to Occidental to help it <a href=\"https:\/\/link.cnbc.com\/public\/16855839\" target=\"_blank\" rel=\"noopener\">buy Anadarko for $38 billion<\/a>.<\/p>\n<p>The loan, in the form of Berkshire&#8217;s purchase of preferred stock, requires Occidental to pay a dividend of 8% a year. That works out to $200 million each quarter.<\/p>\n<p>At the time, <a href=\"https:\/\/www.cnbc.com\/2019\/05\/06\/buffett-says-occidental-petroleum-investment-is-a-bet-on-oil-prices-over-the-long-term.html\">Buffett told CNBC<\/a> it was a bet that oil prices would rise over the long term.<\/p>\n<p>Berkshire bought a relatively small stake of just under 19 million shares in the second half of 2019. It was valued at around $780 million as of the end of that year.<\/p>\n<p>In the shorter term, Buffett bet on oil prices wasn&#8217;t doing very well when they collapsed in early 2020 due to the onset of the COVID-19 pandemic.<\/p>\n<p>To conserve cash, Occidental made its first and second quarter loan payments to Berkshire <a href=\"https:\/\/link.cnbc.com\/public\/20743564\" target=\"_blank\" rel=\"noopener\">in the form of stock<\/a>. (<a href=\"https:\/\/link.cnbc.com\/public\/21616417\" target=\"_blank\" rel=\"noopener\">It resumed cash payments<\/a> after that.)<\/p>\n<p>Berkshire received <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/0000797468\/000114036120008878\/0001140361-20-008878-index.htm\" target=\"_blank\" rel=\"noopener\">17.3 million shares<\/a> for the first quarter and <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/0000797468\/000114036120016017\/0001140361-20-016017-index.htm\" target=\"_blank\" rel=\"noopener\">11.6 million shares<\/a> for the second quarter.<\/p>\n<p>But its 13F filings didn&#8217;t list any OXY stock at all <a href=\"https:\/\/link.cnbc.com\/public\/21211912\" target=\"_blank\" rel=\"noopener\">as of June 30<\/a> and <a href=\"https:\/\/link.cnbc.com\/public\/22165753\" target=\"_blank\" rel=\"noopener\">September 30<\/a> in 2020, indicating that amid the oil market carnage it had sold both the 19 million shares it bought and the almost 29 million shares that it received as dividend payments.<\/p>\n<p>Now, with oil prices strong again, it&#8217;s back in Berkshire&#8217;s portfolio in a big way.<\/p>\n<p><em>(Get a summary of news and features related to Warren Buffett and Berkshire Hathaway delivered straight to your email inbox every week.\u00a0<\/em><a href=\"https:\/\/buffett.cnbc.com\/2018\/08\/15\/warren-watch.html\" target=\"_blank\" rel=\"noopener\"><em>Sign up for the Warren Buffett Watch newsletter<\/em><\/a><em>.)<\/em><\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\">\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Buffett Watch  Berkshire Hathaway Portfolio Tracker     Daniel Zuchnik | WireImage | Getty Images<\/p>\n","protected":false},"author":1,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1360462","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1360462","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1360462"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1360462\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1360462"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1360462"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1360462"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}