In mid-June, the price of West Texas Intermediate (WTI) crude oil topped $120 per barrel. Since then, $30 has been shaved off the commodity's price, a steep decline of 25% in less than a month. As you would expect, share prices of oil producers have followed crude oil prices downward. For Warren Buffett, this sell-off has represented an opportunity to resume aggressively purchasing shares of Occidental Petroleum (NYSE: OXY). For context, Occidental Petroleum shares dropped from over $70 in early June to around $60 in mid-July. Buffett's Berkshire Hathaway (NYSE: BRK-A) used that share price decline to scoop up another 4.3 million shares of Occidental Petroleum. Berkshire now owns a shade under 20% of Occidental Petroleum's total shares, making Berkshire by far the largest shareholder of the company. Factor in warrants, and Berkshire owns roughly one-third of Occidental Petroleum. Buffett clearly loves the company... but should we? |
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