Omaha, Nebraska – Warren Buffett’s Berkshire Hathaway has increased its stake in oil company Occidental Petroleum, reaching ownership of over 255 million shares, equivalent to a 28.8% stake. This marks Berkshire’s sixth-largest stock holding, with the conglomerate emerging as Occidental’s predominant institutional investor.

Additionally, Berkshire holds $10 billion of Occidental preferred stock and possesses warrants to acquire another 83.9 million common shares at $59.62 each. The warrants were part of a 2019 deal that facilitated Occidental’s acquisition of Anadarko Petroleum.

With Occidental’s stock closing at $60.2 on Monday, Buffett’s warrants are now “in the money,” potentially increasing Berkshire’s ownership beyond 40% if the preferred equity is fully redeemed. Despite regulatory approval allowing Berkshire to secure up to a 50% stake, Buffett has clarified that he has no intention of taking full control of the company.

Buffett revealed that his interest in Occidental was piqued after thoroughly analyzing the company’s earnings conference call transcript. He praised Occidental CEO Vicki Hollub for steering the company in the right direction.

Occidental also boasts a 1.5% dividend yield, with its stock remaining relatively stable this year after experiencing a 5% decline in 2023. Buffett seized the opportunity to acquire a 14% stake in the energy firm, valued at over $7 billion, during a period of heightened market volatility in early 2022.

Reflecting on his investment strategy, Buffett highlighted the unique opportunity presented by acquiring a significant portion of a company within a short timeframe, emphasizing the challenges faced in executing similar transactions with larger entities.