Warren Buffett's company has bet $47B on the oil sector

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Warren Buffett’s company has now bought up more than $11 billion worth of Occidental Petroleum stock this year to give Berkshire Hathaway control of more than 20% of the oil producer.

FILE - In this May 5, 2019, file photo, Warren Buffett, Chairman and CEO of Berkshire Hathaway, speaks during a game of bridge following the annual Berkshire Hathaway shareholders meeting in Omaha, Neb. Buffett's Berkshire Hathaway now controls nearly 20% of Occidental Petroleum's stock after picking up another $250 million worth of shares of the oil producer this week.

Wall Street follows Buffett's actions closely, including his investments in Occidental Petroleum. Its shares have more than doubled in price this year. That means Buffett's Omaha, Nebraska, conglomerate holds nearly $47 billion in oil sector investments because Berkshire holds another $10 billion worth of preferred Occidental shares that it picked up in 2019 when it helped finance Occidental's purchase of Anadarko.And Buffett may not be done. Berkshire owns warrants to buy another 83.9 million Occidental shares at $59.62 apiece. Edward Jones analyst Jim Shanahan estimates that Berkshire's oil sector holdings are worth $46.

 

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He’s not betting on the Keystone XL pipeline because that would destroy his rail line business.

Brilliant man

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