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Warren Buffett, the world's most successful investor, is confident in the future of oil and gas company Occidental Petroleum. He is again increasing his stake in the company, this time from 25.1 percent to 25.8 percent.

Berkshire Hathaway is Warren Buffett's investment company, known for its long-term vision and above-average performance. Its success gave Buffett the status of "primal investor." When he speaks, people listen.

In the news: Buffett increased his stake in Occidental Petroleum, according to a filing with the Securities and Exchange Commission (SEC).

  • 3.9 million shares were bought at an average price of about $63. Together they accounted for $246.4 million.
  • With that, Berkshire Hathaway now has 228 million shares of the oil company in its portfolio, totaling $14.5 billion.
  • Moreover, Buffett appears willing to pay more for the shares as well. His last purchase in July paid an average of $57.1 per share, up from $63 last week.

Worth noting: As of February 2022, Berkshire did not own a single share of the oil company. Since then, the company increased its stake in Occidental at a rapid pace. Buffett and his company now own over a quarter (25.78 percent) of the company. It represents 4.11 percent of Berkshire Hathaway's portfolio.

Moving away from fossil fuels

Zoomed out: Buffett clearly has his sights set on Occidental Petroleum.

  • He asked permission from the U.S. energy regulator in July 2022 to buy back up to 50 percent of the shares, and he got it.
  • It seems like a crazy move, pumping money into an oil company while worldwide efforts are being made to move away from fossil fuels. After all, demand for the product has an expiration date, although Buffett seems convinced that we won't reach it right away. For now, then, demand for oil appears to be holding steady.

(ns/evb)

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