Warren Buffett's Berkshire Hathaway buys another $700 million of Occidental Petroleum stock — and now commands a $11 billion stake in the energy giant

Warren Buffet's company added $700 million to its stake in the oil and gas company.

The conglomerate bought around 12 million shares and paid an average of $58 per share. The purchases raised its holding to 175 million shares, or 18.4% of the outstanding shares.

This year, it was built from the ground up. By March 1, it had amassed 30 million shares and spent $7 billion to more than double its stake by March 16.

Along with its common shares, the company has $10 billion worth of preferred shares and stock warrants that can be used to buy more common shares at a cost of $5 billion. The preferred stock and warrants were given to it in exchange for providing $10 billion of financing for the merger of the two companies.

The stock price of olivary was higher than the exercise price of the warrants. If it exercises all of its warrants and sells the resulting shares at the current market price, it would make about $150 million in profit.

If the warrant shares were kept, the ownership of the company would increase. An analyst at Truist Securities suggested that it might be the plan to acquire the company.

In the first five months of the year, the stock price of the oil and gas company more than doubled. The energy company's share price has fallen over the past month. The stock might have been a bargain again because of the renewed buying by the team.

During the February earnings call, CEO Vicki Hollub commented on the company's performance. She outlined her plan to maximize free cash flow over the long term.

During the annual shareholders' meeting in April, Buffett gushed about Vicki Hollub. He said that it was a good place to put the money of the company.

There was a lot of trading of the shares in the spring. The stock market was being treated like a casino by investors.

The country was sitting around trading in March. The vice-chairman and his right-hand man, Charlie Munger, have seen a lot.

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