Warren Buffett Hikes Occidental Petroleum Stake After Getting Regulatory OK To Buy 50%
As an affiliate, we may earn from qualifying purchases. We get commissions for purchases made through links on this website.
Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase! https://mathisenmarketing.com/coinbase
Warren Buffett bought more Occidental Petroleum (OXY) shares after him Berkshire Hathaway (BRKB) received official permission to buy up to 50%. OXY stock rose slightly late on Friday.
Berkshire Hathaway now owns 26.8 percent of Occidental Petroleum, according to a regulatory filing Friday night. This came exactly one month after Warren Buffett’s company announced that its OXY stake had increased to 20.2%. Exceeding the 20% ownership level means that Berkshire Hathaway can record Western income in its books.
The Federal Energy Regulatory Commission has given Berkshire Hathaway permission to buy up to 50% of Occidental Petroleum. That’s according to the order, which was announced on August 19. Berkshire made the request on July 11.
There has been speculation that Berkshire could buy all of Occidental, although The Wall Street Journal, citing sources, said last month that Warren Buffett was unlikely to do so.
Join IBD experts as they analyze performing stocks during the stock market rally on IBD Live
OXY stock rises with Buffett’s purchases
OXY stock was up 1.6% late Friday. For the week, Occidental Petroleum fell 4.6 percent to 65.61, although it found support at its 50-day moving average.
OXY shares broke sharply from the bottom of the cup with a handle on August 19 on the news that Buffett had permission to buy 50% of the company. Shares hit a record high of 77.13 on August 29, but have now recycled all that gain from a buy point of 66.26.
Occidental’s stock outperformed many oil producers over the summer, thanks to Warren Buffett’s steady gains. But OXY shares have come under pressure as crude oil prices have fallen significantly.
Meanwhile, BRKB’s stock rose 2.9% to 285.77 last week. Three weekly declines followed, starting with a major reversal from the 200-day moving average.
Follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
YOU MAY ALSO LIKE:
Market rally, even stronger than it looks; Five stocks in buying areas
These are Warren Buffett’s best stocks right now
Warren Buffett Stocks: MSFT, GOOGL among 24 names on this screen
Why This IBD Tool Simplifies Finding Top Stocks
Elon Musk comes up with another reason to end the $44 billion Twitter deal