Warren Buffett (Trades, Portfolio), the legendary investor and chairman of Berkshire Hathaway, has recently increased his stake in Occidental Petroleum Corp (OXY, Financial). The transaction, which took place on October 25, 2023, saw Buffett add 3,921,835 shares to his holdings, representing a 1.75% change in shares. This move has a 0.07% impact on his portfolio and brings his total shares in the company to 228,051,027. The shares were purchased at a price of $62.83 each, making OXY account for 4.11% of Buffett's portfolio and giving him a 25.78% stake in the company.
Profile of the Guru: Warren Buffett (Trades, Portfolio)
Known as "The Oracle of Omaha", Warren Buffett (Trades, Portfolio) is one of the most respected and successful investors in history. He studied under the legendary Benjamin Graham at Columbia University, who had a significant impact on his investment strategies. Buffett is the chairman of Berkshire Hathaway, which he transformed from a textile company into a major insurance conglomerate. His investment philosophy is based on value investing, an adaptation of Benjamin Graham's approach. Buffett seeks to acquire great companies trading at a discount to their intrinsic value and hold them for a long time. He invests only in businesses he understands and always insists on a margin of safety. His top holdings include Apple Inc (AAPL, Financial), American Express Co (AXP, Financial), Bank of America Corp (BAC, Financial), Chevron Corp (CVX, Financial), and Coca-Cola Co (KO, Financial). His portfolio, valued at $348.19 billion, is heavily concentrated in the technology and financial services sectors.
Details of the Transaction
The transaction took place on October 25, 2023, with Buffett purchasing the shares at a price of $62.83 each. This brings his total holdings in Occidental Petroleum Corp to 228,051,027 shares, representing 4.11% of his portfolio and a 25.78% stake in the company.
Overview of Occidental Petroleum Corp
Occidental Petroleum Corp is an independent exploration and production company with operations in the United States, Latin America, and the Middle East. As of the end of 2022, the company reported net proved reserves of 3.8 billion barrels of oil equivalent. Its net production averaged 1,159 thousand barrels of oil equivalent per day in 2022, with a ratio of 75% oil and natural gas liquids and 25% natural gas. The company operates in four segments: Chemical, Corporate and eliminations, Midstream and marketing, and Oil and gas. With a market capitalization of $55.97 billion, the company's stock is currently priced at $63.27. The company's PE ratio stands at 10.74, indicating that it is profitable. However, according to GuruFocus valuation, the stock is modestly overvalued with a GF Value of 49.66 and a Price to GF Value ratio of 1.27.
Analysis of the Stock's Performance
Since the transaction, the stock has gained 0.7%. Since its IPO in 1986, the stock has seen a massive increase of 998.44%. Year-to-date, the stock has seen a modest increase of 3.64%. The company's GF Score is 69/100, indicating a poor future performance potential. Its financial strength is ranked 5/10, while its profitability rank is 7/10. The company's growth rank is 5/10, indicating a moderate growth potential.
Comparison with Other Gurus
Other gurus who also hold the traded stock include Dodge & Cox, Smead Value Fund (Trades, Portfolio), and Prem Watsa (Trades, Portfolio). However, Buffett's stake in the company is significantly larger, with a share percentage of 25.78% compared to the largest guru's share percentage.
Conclusion
In conclusion, Warren Buffett (Trades, Portfolio)'s recent addition to his stake in Occidental Petroleum Corp is a significant move that reflects his confidence in the company's future prospects. Despite the stock being modestly overvalued according to GuruFocus valuation, its strong profitability and growth potential make it an attractive investment. This transaction is likely to have a significant impact on the stock and Buffett's portfolio, and it will be interesting to see how it unfolds in the future.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
