Warren Buffett $13B Bet On Occidental Petroleum Turns Sour As Shares Plunge 29% Since Mid-April — Analyst Says He Could Buy More
Portfolio Pulse from Benzinga Neuro
Warren Buffett's $13 billion investment in Occidental Petroleum (OXY) has faced challenges as the stock has dropped 29% since mid-April, influenced by a decline in crude oil prices. Despite the setback, Buffett may consider buying more shares, although a takeover is unlikely. Occidental's stock buyback plans hinge on debt reduction. Berkshire Hathaway's average purchase price is slightly above the current trading price, and Buffett holds warrants to buy more shares at a higher strike price.
September 13, 2024 | 7:14 am
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Buffett's decision to sell shares in Apple, despite its strong market position, indicates a cautious strategy in response to economic uncertainties. This could impact investor sentiment towards Apple.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 40
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CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50
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Berkshire Hathaway's investment in Occidental Petroleum is under pressure due to a 29% drop in OXY's stock price. Buffett's strategy may include buying more shares, but the investment is currently underwater.
Berkshire Hathaway's large stake in Occidental Petroleum means the drop in OXY's stock price significantly affects its investment value. Buffett's potential to buy more shares could mitigate some losses, but the current situation is challenging.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 80
NEGATIVE IMPACT
Occidental Petroleum's stock has dropped 29% since mid-April, impacting Warren Buffett's investment. Despite the decline, Buffett may buy more shares, but a takeover is unlikely. The stock's buyback plans depend on debt reduction.
The significant drop in Occidental's stock price directly impacts Buffett's investment, making it a critical issue for investors. The potential for Buffett to buy more shares could stabilize the price, but the current market conditions and debt concerns weigh heavily on the stock.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100