Occidental Petroleum: A Profitable Venture For Warren Buffett's Berkshire Hathaway

ZINGER KEY POINTS

• Berkshire Hathaway committed to Occidental Petroleum, potentially yielding profits.
• Warren Buffett invested in Occidental Petroleum, diversifying Berkshire Hathaway's portfolio and showing belief in traditional fuels.
• Occidental Petroleum's potential stock price boost aligns with Warren Buffett's investment strategy.

Warren Buffett's Berkshire Hathaway has furthered its commitment to Occidental Petroleum Corporation OXY, amassing a significant stake in the energy giant.

This marks a considerable leap for one of America's preeminent businesses - and an indication that this relationship could be here to stay.

Berkshire Hathaway has made a major move, significantly increasing their stake in Occidental Petroleum to become one of the company's largest shareholders.

Not too long ago they didn't own any shares but now it is among the top 10 holdings for Berkshire Hathaway!

Occidental Petroleum's stock price has risen over 180% in the past two years. With this type of growth over a short period of time, this could turn out to be a very profitable venture.

Warren Buffett is a master of value investing, and his latest investment in Occidental Petroleum provides yet another example.

With the billionaire steadily accumulating shares over time as part of his long-term strategy, he's kept true to form with this savvy play on an undervalued stock.

Warren Buffett's recent investment in Occidental Petroleum shows that he hasn't overlooked the potential of traditional fossil fuels despite growing awareness about climate change and a push for renewable energy.

Developing economies have played an essential role as they create more demand, while geopolitical issues could put existing supplies under pressure further down the road.

Berkshire Hathaway is known for having a diverse portfolio of investments across various industries, including technology, healthcare, and finance.

Adding Occidental Petroleum to its holdings provides further diversification within the energy sector and helps balance out some of the risks associated with other investments.

Occidental Petroleum has struggled in recent years due to low oil prices and high debt levels. Still, if oil prices were to rebound significantly, it could lead to a major boost for the company's stock price – and by extension, Berkshire Hathaway's investment returns.

With Buffett's track record of successful long-term investments, it wouldn't be surprising if he saw this as a potential opportunity worth taking advantage of.

After the closing bell on Tuesday, March 7, the stock closed at $60.85, trading down by -1.27%.