OXY(OXY) The Motley Fool·2025-03-01 10:46Core Insights - Warren Buffett has significantly invested in Occidental Petroleum, purchasing shares in 10 of the last 13 quarters, making it a key holding outside of Berkshire Hathaway itself [2][4]. Group 1: Investment Activity - Berkshire Hathaway has been a net seller of stocks for nine consecutive quarters, but has engaged in a multi-year buying spree with Occidental Petroleum [2]. - Buffett initially invested in Occidental in Q3 2019 but exited in Q2 2020, before resuming purchases in Q1 2022 and consistently adding to the stake [3][4]. - As of now, Berkshire owns over 264.9 million shares of Occidental, valued at approximately $13 billion, ranking it as the sixth-largest holding in Berkshire's portfolio [5]. Group 2: Reasons for Investment - Buffett has expressed admiration for Occidental's CEO, Vicki Hollub, particularly her expertise in oil and her focus on carbon capture and storage technology [6]. - In his 2024 shareholder letter, Buffett highlighted the importance of Hollub's skills in oil extraction and the company's vast U.S. oil and gas holdings, as well as its leadership in carbon capture initiatives [7]. Group 3: Future Outlook - Berkshire is likely to maintain and possibly increase its stake in Occidental, with Buffett indicating plans to hold the stock indefinitely [8]. - Berkshire has regulatory approval to acquire up to 50% of Occidental, currently holding 28.2%, and may approach this threshold in the coming years [9]. - The stock trades at a forward earnings multiple of 12.6, below the S&P 500 energy sector average, suggesting potential for significant long-term growth if carbon capture goals are met [10].