During the third quarter (Q3) of 2024, the extensive selling activity – particularly of Bank of America (NYSE: BAC) stock – of Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A, BRK. drew much attention.
More recently, the trend reversed and numerous massive purchases made by the legendary ‘Oracle of Omaha’ started making headlines once more. A recent – and massive – example came on December 19 when the buying of nearly 9 million Occidental Petroleum (NYSE: OXY) shares was disclosed.
This signal is triggered upon the reporting of the trade to the Securities and Exchange Commission (SEC).
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According to the document, Berkshire Hathaway, which owns approximately 10% of the oil giant, acquired the stock at an average price of $45.99 for a total investment of a staggering $409 million.
Occidental Petroleum has been a mainstay of the Warren Buffett portfolio for years, and the initial purchase of 4.7 million OXY shares was made in Q3 2019. Documents published on November 15 revealed that the oil giant accounted for 4.9% of the total portfolio at the end of the trimester, and the stake was valued at over $13 billion.
So far, the investment provided somewhat middling returns for the legendary investor. The original OXY trade was executed at the average price of $47, and the stock, mere months later, dipped below $10 as the Covid-19 crisis unfolded.
At press time on December 23, Occidental Petroleum stock is changing hands at $48.08, indicating Buffett is in the green, even if only slightly.
Still, the fate and ultimate profitability of the OXY bet remain uncertain as the shares haven’t exactly performed in 2024 and are 19.94% in red year-to-date (YTD).