The new date is Jun 23, 2022.
With oil prices down this month, billionaire investor Warren Buffet is once again buying the dip by adding to one of his favorite energy stocks, as his investing conglomerate bought roughly $500 million worth of Occidental Petroleum shares this week
The investor now owns more than 20% of the company.
According to a new regulatory filing late on Wednesday, Warren Buffet's company bought nearly 10 million shares of the oil and gas company over the past week.
As a result of a buying spree that began in late February, the investment conglomerate now owns over 150 million shares of the energy company, making it the largest shareholder.
One of the best-performing stocks this year has been Occidental, which has risen over 90% thanks to the surge in oil prices.
Though oil has spiked this year, reaching a high of nearly $140 per barrel ever since Russia's invasion of Ukraine in February, prices have moderated this month, with energy stocks paring back some of their momentous gains.
The price of the U.S. benchmark West Texas Intermediate is around $105 per barrel, while the international benchmark is around $110 per barrel.
Despite analyst predictions that oil will remain above $100 per barrel throughout the summer, Warren Buffet is using some of the recent declines as a buying opportunity.
The S&P 500 Energy sector has been the best performer in the market so far this year, rising over 20% compared to the benchmark index. Experts agree that energy companies have been enjoying robust profits, but some think that oil prices may have peaked and could moderate by next year.
Edward Moya is a senior market analyst at Oanda. Oil prices are under pressure due to global recession fears and high inflation, with all the short-term drivers turning negative for the crude demand outlook.
The shares of Chevron are up more than 18% this year. It is one of the richest holdings after Apple and Bank of America.
According to Forbes, that is the amount of money Buffet is worth. The ninth richest person in the world is him.
It fuels more speculation about whether or not he could try to buy the whole company.
The price of oil will remain elevated through the summer.
Warren Buffet is buying a lot of stock in the stock market.
All Rights Reserved © 2024
