Berkshire Hathaway disclosed in a regulatory filing late Wednesday that it spent about $529 million to buy nearly 9.6 million shares of Occidental Petroleum last week.
Berkshire Hathaway (BRKB) made the purchases between June 17 and June 22. Buffett’s conglomerate now owns a 16.3% stake in western oil (OXY), making it by far the largest owner of the stock. Mutual fund giant Vanguard is the second largest investor, with a nearly 11% position in the company.
Occidental Petroleum is the top performer in the S&P 500 this year, rising 92% as crude prices soar. Shares rose more than 3% in early trading Thursday.
But Occidental Petroleum isn’t the only energy company Berkshire loves. Chevron (CLC), the best Dow Jones stock of 2022, is also a favorite of Buffett and his team of investors. (Berkshire executives Ted Westchler and Todd Combs manage the portfolio with the Oracle of Omaha.)
Berkshire revealed at its annual shareholder meeting in May that Chevron was one of the company’s largest holdings at the end of the first quarter.
Berkshire said it has a nearly $26 billion stake in the oil giant, a position that trails only its stakes in Apple (AAPL), Bank of America (BAC) and American Express (AXP) at the time. The value of Berkshire’s longstanding stake in Coca Cola (KO) has since eclipsed that of Chevron and AmEx.
Oil and energy activities also form a significant part of Berkshire’s overall operating activities. The company’s energy subsidiary owns leading electric utilities, including PacifiCorp and MidAmerican, oil and gas pipelines and several renewable energy companies.
Greg Abel, the Berkshire vice chairman who oversees Berkshire Energy and the company’s other non-financial businesses, was tapped last year to eventually succeed Buffett, 91, as CEO of Berkshire Hathaway.
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