Warren Buffett bets $130 million on Occidental, dumped stocks in Q1

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Warren Buffett just plowed around $130 million into Occidental Petroleum after dumping a bunch of stocks last quarter

The purchases boosted Berkshire's stake to nearly 214 million shares, or 23.8% of the company. Buffett and his team have now plowed well over $11 billion into OccidentalOccidental's stock price surged 117% in 2022, making it the S&P 500's top performer for the year. It benefited from Buffett's backing, and Russia's invasion of Ukraine disrupting global energy supply and causing oil prices to spike.

However, Occidental shares have slumped by 24% from their August peak to trade at $58.52 as of Monday's close. Buffett - a value investor who specializes in sniffing out bargains - likely determined they were priced too cheaply, and decided to pounce for the first timeBerkshire's stake is currently worth around $12.5 billion, excluding preferred stock and warrants it received in exchange for financing Occidental's takeover of Anadarko Petroleum in 2019.

However, Monday's filing shows that Occidental paid Berkshire $711 million between April 11 and May 12 to redeem 6,468 of the conglomerate's preferred shares. Berkshire's stockpile shrunk from 100,000 shares to 93,532 as a result. "In the last few months, they've reduced our preferred, which we don't like obviously," Buffett said during Berkshire's annual shareholder meeting this month."We'd be disappointed in them if they didn't reduce it, it's intelligent from their standpoint."

 

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