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Berkshire Hathaway reveals $5 billion stake in oil giant Occidental Petroleum

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Daniel Zuchnik | WireImage | Getty Images

His annual letter to shareholders, which was released just one week ago is his first. Warren Buffett complainedHe could not find anything that excites him in the equity market.

However, new SEC filingOn Friday, it was discovered that either Buffett, or Buffett’s portfolio managers, were very excited by Berkshire Hathaway. Occidental Petroleum.

Berkshire holds 91.2 million shares in the oil giant as of Friday. They’re worth $5.1 billionAt tonight’s close, $56.15 was earned. Today’s close was $56.15.

Along with oil prices, it has moved sharply up. which has soaredIn the aftermath of the hurricane, the price per barrel was around $115 Russian invasion of Ukraine.

And while Occidental was rallying Berkshire began to buy.

It now holds more than 6 million shares. The shares were bought at prices from $47.07 up to $56.45.

On Tuesday, the 29 million remaining shares were bought. (Berkshire stated that it held no OXY stock as of December 31st. latest 13F filing.)

CNBC reached out to Berkshire Friday night for no comment. 

Because it has not reached the market yet, we don’t have any information about when or how much it paid Berkshire for those 29,000,000 shares. 10% ownership levelThis requires that new purchases must be reported within one day of being made.

Berkshire owns only 9% Occidental common shares. However, it has warrants for 83.9 millions shares worth $59.62. 

Although the warrants were not exercised they must be counted for purposes of SEC filing trigger. This technically puts Berkshire’s share at over 17%.

Berkshire obtained those warrants in a deal which included the actual aforementioned. $10 billion loan in 2019Occidental will help you buy Anadarko for $38 billion.

The Berkshire purchase of preferred stock required Occidental pay a dividend at 8% per year. It amounts to $200 millions each quarter.

It was at the time: Buffett told CNBCIt was an assumption that oil prices will rise in the long-term.

Berkshire acquired a very small amount of shares, less than 19 million in the second quarter of 2019. The value of this stake was approximately $780million at the close of 2019.

Buffett made a bet on the oil price collapse in the short-term. This was due to COVID-19.

Occidental paid Berkshire its first and second quarter loans to save cash in the form of stock. (It resumed cash paymentsAnschließend.

Berkshire received 17.3 million sharesFor the first quarter 11.6 million sharesThe second quarter.

Its 13F filings failed to list any OXY stock as of June 30 September 30It was able to show that in 2020 it had both sold the 19,000,000 shares it purchased and almost 29 million it got as dividends.

Berkshire is now reinvesting heavily in oil, as the price of oil has rebounded.

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