- Warren Buffett, the “Oracle of Omaha,” has his sights set on two top stocks for 2024: Berkshire Hathaway and Occidental Petroleum.
- Berkshire Hathaway made a major share buyback, spending $7 billion in the first nine months of 2024.
- Buffett could continue to increase his stake in Occidental Petroleum by using warrants he received in 2019 to buy shares at a lower price.
Warren Buffett, a recognized luminary in the world of stock investing, has long attracted millions of people with his deep financial knowledge. Revered as the “Oracle of Omaha,” Buffett’s ability to pick unwavering performers has become legendary.
Today we’ll delve into the intriguing realm of Buffett’s potential investment moves, identifying two Actions it might be on this money master’s radar to further increase their assets through Berkshire Hathaway.
Berkshire Hathaway (BRK)
Warren Buffett is the co-founder, chairman and CEO of Berkshire Hathaway, but that doesn’t mean you can’t buy shares of your own company.
The conglomerate carried out large share buybacks throughout 2024, purchasing a total of $7 billion in the first nine months of the year. By comparison, that’s more than Berkshire’s majority stake in some companies.
While most companies have limited share buyback approvals from their boards of directors, Berkshire’s buyback program is a little different. It is noteworthy that the company can Buy back his shares at any time when Buffett believes the stock price is below its intrinsic value.
However, the firm must have at least $30 billion in cash, cash equivalents and U.S. Treasury bills.
Unless BRK’s price rises significantly in 2024, there’s no reason to assume Buffett and Berkshire won’t continue their buybacks.
Occidental Petroleum (OXY)
Quarterly securities filings revealed various trades Berkshire Hathaway made during 2023, but oil giant Occidental Petroleum (OXY) was among them. shares that the investment giant has been consistently buying this year.
In particular, the company’s stake in OXY increased from 194 million shares to 253 million. In percentage terms, Berkshire owns almost 28% Western.
Additionally, it is likely that Buffett will continue to increase his stake in OXY in 2024. The main reason for this is that in 2019, Berkshire helped Occidental finance the acquisition, and in return received warrants allowing it to buy OXY shares at a price of 56.62. Dollars.
Thus, as long as the company’s share price is trading below this level, Berkshire can buy shares of the company at a discount. Berkshire also received approval to buy up to 50% of Occidental in 2022, leading to speculation that the investment colossus may be planning complete takeover of an oil producing company.