For the third time in March Warren Buffett is loading up on a certain stock.
Crude prices are down big it 2023, but Warren Buffett sees this as a buying opportunity for one of his favorite industry stocks.
Berkshire Hathaway purchased another 3.7 million shares of Occidental Petroleum (OXY) – Get Free Report between March 23 and March 27 at a cost of about $216 million, according to a Securities and Exchange Commission filing.
Buffett has been loading up on Occidental stock since Russia invaded Ukraine. Berkshire now holds a 23.6% ownership stake in the company.
The U.S. Federal Energy Regulatory Commission granted Berkshire permission to buy up to 50% of the company’s stock.
Berkshire owns about 211.7 million Occidental shares worth $12.6 billion based on Monday’s closing price.
Two weeks ago, the company pushed its stake to 23.1% after purchasing 7.9 million shares for $466.68 million between March 13 and March 15.
The week before, the company announced the purchase of nearly 5.8 million shares of the oil company, paying between $59.80 and $61.90.
Buffett’s Investment Strategy
Berkshire released its annual letter to shareholders last month, and the Oracle of Omaha offered sage advice to the investment advice.
Buffett says that Berkshire’s “satisfactory” results over its 58 years are from an advantage that favors long-term investments.
The billionaire mentions the fact that it was 1994 when Berkshire completed its purchase of 400 million shares of Coca-Cola (KO) – Get Free Report. He says the total cost was $1.3 billion.
“The cash dividend we received from Coke in 1994 was $75 million,” Buffett wrote. “By 2022, the dividend had increased to $704 million. Growth occurred every year, just as certain as birthdays.”