--- title: "Warren Buffett $13B Bet On Occidental Petroleum Turns Sour As Shares Plunge 29% Since Mid-April — Analyst Says He Could Buy More" description: "Warren Buffett's investment in Occidental Petroleum has suffered as shares plummeted 29% since mid-April, influenced by a 23% drop in crude oil prices. Analyst Chris Bloomstran suggests Buffett may bu" type: "news" locale: "en" url: "https://longbridge.com/en/news/214254456.md" published_at: "2024-09-13T07:14:29.000Z" --- # Warren Buffett $13B Bet On Occidental Petroleum Turns Sour As Shares Plunge 29% Since Mid-April — Analyst Says He Could Buy More > Warren Buffett's investment in Occidental Petroleum has suffered as shares plummeted 29% since mid-April, influenced by a 23% drop in crude oil prices. Analyst Chris Bloomstran suggests Buffett may buy more shares but is unlikely to take over the company. Berkshire Hathaway owns a 29% stake, with an average purchase price of $59.22 per share, now above the current trading price of $58.99. Despite the setback, Buffett's investment strategy remains respected, even as he reduces stakes in other companies amid economic uncertainties. Shares of **Occidental Petroleum** OXY have plummeted 29% since mid-April, impacting **Warren Buffett**‘s substantial investment in the company. **What Happened**: **Chris Bloomstran**, fund manager at **Semper Augustus**, suggested that while Buffett might buy more shares, he is unlikely to take over the company. Bloomstran noted that Buffett prefers Occidental to initiate a stock buyback program, which CEO **Vicki Hollub** has said will only happen after significant debt reduction, Business Insider reported on Friday. “I wouldn’t rule out a purchase of additional shares,” Bloomstran said, according to the report. Further compounding the issue, Buffett holds warrants to buy an additional 83.5 million shares at a strike price of $59.62, nearly 20% above the current market price, according to Bloomstran. The decline in Occidental’s stock price aligns with a 23% drop in crude oil prices, driven by concerns over demand and excess supply. **Berkshire Hathaway**‘s BRK BRK $13 billion investment in Occidental Petroleum is now potentially underwater. Buffett’s conglomerate has been accumulating shares of Occidental since early 2022, with a significant buying spree in June at around $60 per share. Currently, Berkshire owns a 29% stake in the oil producer. The $55-$60 price range had previously acted as a support level for Occidental’s stock since Buffett began his purchases, but this floor has now been breached for the first time in over two years. According to **HedgeFollowe**, Berkshire Hathaway’s average purchase price for its stake is estimated at $51.22 per share, slightly above the current trading price. *See Also: Anthony Scaramucci Said Last Week Bitcoin Could Touch Up to $200K, Now He’s Thanking ‘Living Legend’ Mich* **Why It Matters**: The setback for Buffett comes amid a broader context of strategic shifts and market movements. Recently, **Bank of America** BAC CEO **Brian Moynihan** commented on Buffett’s reduction of his stake in the bank, noting that Buffett has been a stabilizing force but has sold nearly $7 billion in shares since mid-July. Buffett has been selling shares in several companies, including **Apple Inc.** AAPL and Bank of America, as economic uncertainties loom. Despite these challenges, Buffett’s investment acumen remains highly regarded. On his 94th birthday, Berkshire Hathaway reached a $1 trillion market cap milestone, underscoring his long-term success. However, even Buffett has admitted to missed opportunities, such as his late investment in **Amazon.com Inc**. Back in the mid-1990s, when Amazon was just an online bookstore with big dreams, Buffett had the chance to invest. He also passed on buying shares during Amazon’s IPO in 1997. Reflecting on this now, Buffett doesn’t shy away from admitting his mistake. “I was too dumb to realize” the potential of Amazon and its visionary founder, **Jeff Bezos**, he’s said, with his usual blend of humility and humor. **Action Price**: Occidental Petroleum’s stock is trading at $50.99, up 0.65% on Thursday. However, year to date, the stock has dropped by 15.09%, according to data from Benzinga Pro. **Read Next:** - **Mark Cuban Says Kamala Harris Is Simply Doing What Trump Did In 2016: ‘It’s Her Party. She Gets To Set The Rules’** *Image Via Shutterstock* This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote ### Related Stocks - [OXY.US - Occidental Petroleum](https://longbridge.com/en/quote/OXY.US.md) - [BRK.A.US - Berkshire Hathaway](https://longbridge.com/en/quote/BRK.A.US.md) - [BRK.B.US - Berkshire Hathaway B](https://longbridge.com/en/quote/BRK.B.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | Warren Buffett Generated Double The Market's Returns—Until Regulation Changed The Game | Chamath Palihapitiya discussed how regulatory changes, specifically the 2000 Regulation Fair Disclosure (Reg FD), impact | [Link](https://longbridge.com/en/news/276003396.md) | | Ibn Al Haytham Hospital FY Income 301,281 Dinars | Ibn Al Haytham Hospital Company PSC (IBNH.AM):IBN AL HAYTHAM HOSPITAL FY NET INCOME AFTER TAX 301,281 DINARSIBN AL HAYTH | [Link](https://longbridge.com/en/news/275996849.md) | | Options Traders Crowd Into Occidental (OXY) Ahead of Earnings Might Change The Case For Investing In Occidental Petroleum | Options trading activity around Occidental Petroleum (OXY) has intensified ahead of its earnings release on February 18, | [Link](https://longbridge.com/en/news/275593305.md) | | LSV Asset Management Has $8.31 Million Stock Position in Pinnacle West Capital Corporation $PNW | LSV Asset Management increased its stake in Pinnacle West Capital Corporation (NYSE:PNW) by 44.2% in Q3, owning 92,710 s | [Link](https://longbridge.com/en/news/276004371.md) | | What Is Going On With Intel Stock On Friday? | Intel (INTC) shares are attempting a rebound after a $3.3 million antitrust fine in India. Analysts at DA Davidson maint | [Link](https://longbridge.com/en/news/275940158.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.