Despite the weakness in the Energy Sector, the past few weeks, Warren Buffett’s Berkshire (BRK.A)(BRK.B) continues to add to its significant position in Occidental Petroleum OXY ($61). What’s Up?
Does Buffett see another surge in oil prices or just sees this a good place to put some of his growing cash balances? Is he thinking about taking OXY private?
According to a report in CNBC’s weekly Buffett Watch newsletter,, which is free, and which we find interesting, Buffett has increased his company’s holdings to over 17% of the shares outstanding. Technically, the stock has held up better, during this recent oil market correction, than most of the other oil-gas stocks in the Energy sector.
Of course, this is not a recommendation, just an observation. Also, Buffett is a very long term investor and there could be many reasons for his building a current position in one stock. And, of course, he could change his mind tomorrow, take his subtantial profit, in the stock, and move to another asset.
Athough Warren Buffett has been a very successful investor, over many years, he has made a few major investment mistakes, which he often talks about in his annual investment letters to his shareholders. We would recommend to any of our readers of these Posts, that time spend reading some of the older Buffett Annual Letters to his shareholders, would be time well spent.