Investing.com - In a recent development, Berkshire Hathaway (NYSE:BRKb) has increased its investment in Occidental Petroleum Corporation (NYSE:OXY) by acquiring approximately $130 million worth of the company's stock. The latest purchase brings Berkshire's total holding to around 213.9 million shares, which is equivalent to a 24% ownership stake in the major oil and gas firm.
The filing submitted on Monday evening reveals that Berkshire Hathaway purchased close to 2.2 million shares of Occidental Petroleum over Thursday, Friday and Monday at share prices ranging between $56 and $58. As a result, the value of their entire holding now stands at more than $12 billion.
This move comes as speculation continues surrounding Warren Buffett's intentions for his company’s significant position in Occidental Petroleum. Despite ongoing rumors suggesting that Buffett might be interested in acquiring full control over the energy producer, he recently clarified during Berkshire Hathaway’s annual meeting that this was not his goal.
However, Buffett did mention that his company may consider purchasing additional shares of Occidental Petroleum going forward. It appears that they have been strategic with their investments thus far – generally opting to pay less than $60 per share for stocks within this range. According to estimates from Barron’s, it seems likely that Berkshire Hathaway’s overall cost falls somewhere within the low- to mid-50s price point.
In addition to these common stocks, Berkshire also holds more than $9 billion worth of preferred stock in Occidental with an interest rate of 8%, along with warrants granting them rights to buy further shares from the energy-producing giant.