Warren Buffett bought up more Occidental Petroleum (OXY) shares after his Berkshire Hathaway (BRKB) received regulatory approval to purchase up to 50%. OXY shares rose slightly late on Friday.
Berkshire Hathaway now owns 26.8% of Occidental Petroleum, according to a regulatory filing late Friday. It came exactly one month after Warren Buffett’s firm revealed that its OXY stake had reached 20.2%. Crossing the 20% ownership level means Berkshire Hathaway can record Occidental income on its books.
The Federal Energy Regulatory Commission has given Berkshire Hathaway permission to buy up to 50% of Occidental Petroleum. This is according to an order that was published on 19 August. Berkshire made the request on July 11.
There is speculation that Berkshire could choose to buy all of Occidental, although The Wall Street Journal, citing sources, reported last month that Warren Buffett was unlikely to do so.
Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live
OXY shares rise on purchase by Buffett
OXY shares were up 1.6% in late trading Friday. For the week, Occidental Petroleum shares fell 4.6% to 65.61, although it found support at its 50-day moving average.
OXY stock broke sharply out of a cup with handles on August 19 on news that Buffett had approval to buy 50% of the company. The shares ran up to a record high of 77.13 on August 29, but have now rounded off the entire gain from the buy point of 66.26.
Western stocks had outperformed many oil producers over the summer, thanks to Warren Buffett’s steady addition of stocks. But the OXY share has come under pressure with crude oil prices pulling back significantly.
Meanwhile, BRKB shares rose 2.9% to 285.77 last week. That followed three weekly declines, initiating a major reversal from the 200-day moving average.
Follow Ed Carson on Twitter at @IBD_ECarson for stock exchange updates and more.
YOU MIGHT ALSO LIKE:
Market rally even stronger than it looks; Five shares in buying areas
These are Warren Buffett’s best stocks right now
Warren Buffett stocks: MSFT, GOOGL among 24 names on this screen
Why this IBD tool simplifies the search for top stocks
Elon Musk comes up with another reason to end the $44 billion Twitter deal