Time to buy on a dip?
Occidental Petroleum's stock (OXY) $Occidental Petroleum(OXY.US$ has dropped in value along with the fall in oil prices over the past year. Despite a recent improvement, the stock is still 16% lower than its peak in August last year.
While many investors have been selling their shares in this oil company, Warren Buffett's company, Berkshire Hathaway $Berkshire Hathaway-B(BRK.B.US$ $Berkshire Hathaway-A(BRK.A.US$, has been taking advantage of the lower prices and buying more shares. Berkshire Hathaway has purchased an additional 2.1 million shares recently, and now they own a quarter of all the outstanding shares of Occidental Petroleum.
Berkshire Hathaway has been actively buying Occidental Petroleum shares over the past few months. In late June, they spent $122.1 million to acquire over 2.1 million shares at an average price of around $57 per share. In total, Buffett's company now owns 224.1 million shares of Occidental Petroleum, which is about 25.1% of all the outstanding shares.
If you also believe in the long-term potential of the oil and gas industry, following Buffett's approach of buying when the stock price dips may be a smart strategy for you as well.
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