Berkshire Hathaway, owned by Warren Buffett, said on Monday that it had bought shares in western oil companies again, bringing it closer to the 20% threshold to include earnings from western oil stocks on its balance sheet.
Between July 14 and July 16, Berkshire increased its position in 1.94 million shares of Western Oil companies at a price of $56.14 to $59.67 per share, at a cost of $112 million, according to regulatory filingsFurther increase its stake in western oil to 19.4%, worth about $10.9 billion.
Berkshire reported a round of increases from July 11 to 13. This means that Berkshire isIncreased positions were carried out every trading day last week.。
Berkshire has been buying Western oil stocks this year. Since the fall in the share price of Western oil, Berkshire's position increase in June has become more frequent, and the latest round has beenThe fifth round of positions increase since June了。
If the stake reaches 20%, Berkshire can make accounting adjustments under the equity method (equity method) to include its share of the earnings of western oil companies in its own performance. Berkshire had previously adopted an equity approach to its 26.6% stake in Kraft Heinz, a packaged food company.
Berkshire also owns $10 billion of preferred shares in Western oil companies and warrants to buy another 83.9 million common shares for $5 billion. If Berkshire retains its shares in the warrants, its stake in western oil companies will jump further.
On average, analysts expect Western oil companies to make a net profit of about $10.7 billion this year, according to Refinitiv. Some analysts and investors speculate that Berkshire may end up buying all stakes in western oil companies.
Shares of Western oil companies have more than doubled this year, thanks to the rise in oil prices in the wake of the conflict between Russia and Ukraine.