Warren Buffett's Berkshire Hathaway Is Buying More Shares of Occidental Petroleum. Should You Buy the Beaten-Down Oil Stock?

Warren Buffett's company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), can't seem to get enough of Occidental Petroleum (NYSE: OXY). The conglomerate recently purchased another 8.9 million shares of the oil company for $405 million. Buffett's company now owns over 264 million shares worth almost $12.5 billion, totaling more than 28% of Occidental's outstanding shares. Here's a look at the likely factors driving Berkshire Hathaway to scoop up so much of the oil stock and some things to consider before you do the same. Buffett is a value investor at heart. He likes to buy stocks when they trade below their intrinsic value. For Occidental Petroleum, that seems to be at a price point around or below $53 per share, which is Berkshire's average cost for the position, according to an estimate by Barron's. With the oil stock recently hitting its lowest price in three years at around $46 per share, Buffett's company pounced and bought more shares. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool