Warren Buffett’s stock portfolio: Warren Buffett buys an additional 27.1 million shares of Occidental Petroleum
The acquisitions were executed on Wednesday, Thursday and Friday with prices ranging between $51.03 and $58.58, according to an SEC report filed Friday evening.
The average value of almost all transactions is $56.60.
Berkshire had 118.3 million in current assets, valued at $6.9 billion before Friday’s close of $57.95.
As a result, OXY moved up one spot to ninth position on Berkshire’s list of the largest publicly traded US stocks.
Additionally, when he is allowed to purchase approximately 84 million shares, which were obtained as part of his deal that took place in 2019. This deal helped fund Occidental’s acquisition of Anadarko, as included, this particular stake that the SEC takes into account sums up to 20%.
The underlying asset of these warrants appears to be $59.624, which also indicates that they are only pennies away from being “in the money”.
Berkshire could then use them to buy below market, resulting in an immediate paper profit that would increase even as the stock price rose.
As oil prices have risen, Occidental shares have risen nearly 90% over the past year.
Berkshire owns roughly 9% of Occidental’s common stock. He does, however, have warrants to buy an additional 83.9 million shares at $59.62 each. Even though the contracts weren’t executed, they still need to be considered for SEC filing trigger targets, putting Berkshire’s stake at nearly another 17%.
Berkshire secured the warrants in a deal that would essentially include the equivalent of Occidental’s $10 billion in mortgages in 2019 to help it with its $38 billion acquisition of Anadarko. Occidental has to pay an additional 8% fee on the loans, which was made possible by Berkshire’s acquisition of preferred stock. So, every quarter, that equates to about $200 million.
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