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In the first quarter of 2022, Warren Buffett’s holding company Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) revealed a massive stake in Occidental Petroleum (NYSE: OXY). At the time, Berkshire held about 91 million Occidental shares worth roughly $5 billion — or just under 10% of the company’s total share count. Today, that stake is even bigger. How much bigger? A lot bigger.

This might be Buffett’s favorite stock right now

Besides Berkshire’s initial 91 million shares, it also owned warrants to buy another 83.9 million shares. Those were tied to a 2019 loan worth $10 billion that helped Occidental acquire Anadarko Petroleum, another oil and gas producer.

In the summer of 2022, Berkshire received regulatory approval to buy up to 50% of Occidental. That approval is coming close to being necessary. According to recent filings, Berkshire’s stake is now up to 255.3 million shares worth around $15 billion — nearly 30% of the company’s total share count. It also still owns more than 83 million warrants with a strike price of $59.62 per share, just below the current trading price.

According to Buffett, he started buying shares after reading one of the company’s annual reports. He apparently loved how the company was being run. “I read every word and said this is exactly what I would be doing,” he told CNBC.

In just two years, Occidental has become the sixth-largest stake in Berkshire’s publicly traded portfolio. Don’t be surprised to see that rise even further, especially now that the stock warrants aren’t underwater. If exercised, Berkshire’s would control almost 40% of Occidental’s total outstanding shares.

Should you invest $1,000 in Occidental Petroleum right now?

Before you buy stock in Occidental Petroleum, consider this:

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Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.

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