Why Buffett boosts stake in OXY again

Warren Buffett can't seem to get enough of $Occidental Petroleum(OXY.US)$ stock.

He bought shares several times this week,according to a regulatory filing released late Wednesday.

The transactions bring Berkshire's total stake in Occidental to 18.7%. Berkshire is by far Occidental's largest shareholder.

Why Buffett takes more OXY shares?

The moves have been a boon to Berkshire.

Against the backdrop of soaring commodity prices, Occidental has benefited from the spike in oil prices following Russia's invasion of Ukraine. It's no surprise that Buffett continues to buy.

Value and defensive stocks, like Oil stocks, are preferred in bear markets.

Purchases of Buffett in 2022 mostly come from traditional value stocks, which offer more of a valuation advantage than tech stocks with lofty valuations.

Concerns for high-growth tech stocks are a boon for Buffett's investing style, which benefits his value-driven approach as the market moves toward cheaper and more defensive industries.

You might like: Why Is Buffett Still Buying Oil Stocks?

Qiuz of Today

Which assets can be used as safe-haven assets in a bear market?

A、Gold & other precious metals

B、Some currencies like Swiss franc

C、Defensive stocks

D、Treasury bills

E、Growth stocks

F、I don't know, click Library · Details

Leave your anwers in the comments.

Wanna take more quizs? Try our interactive learning exams and get your learing badges.

Click to start now!