Occidental Petroleum (OXY) and SiriusXM Holdings (SIRI) saw significant stock gains on Friday following increased investment from Warren Buffett’s Berkshire Hathaway. This article explores the details of these recent acquisitions and the potential motivations behind them.
Berkshire Hathaway’s recent regulatory filings reveal significant additions to its holdings in both Occidental Petroleum and SiriusXM Holdings. Between Monday and Wednesday of this week, Berkshire purchased approximately 8.9 million shares of Occidental Petroleum at prices ranging from $45.55 to $46.92 per share. This purchase brings Berkshire’s total common share ownership in Occidental to a substantial 264.2 million shares, in addition to 84,897 shares of preferred stock. The impact of this investment was evident as Occidental’s stock price surged by about 4.5% on Friday.
Simultaneously, Berkshire Hathaway also increased its stake in SiriusXM Holdings. During the same three-day period, the company acquired roughly 5.0 million shares of SiriusXM at prices between $20.85 and $22.49 per share, boosting its total ownership to 117.5 million shares. This acquisition coincided with a notable 10% jump in SiriusXM’s stock price on Friday. These recent purchases follow a pattern of increased investment in both companies by Berkshire Hathaway throughout the year. In June, Berkshire acquired 7.3 million shares of Occidental Petroleum, further solidifying its position in the oil producer. Similarly, in October, Berkshire added 3.6 million shares to its SiriusXM portfolio.
These strategic moves by Warren Buffett suggest a “buy the dip” approach, capitalizing on the recent declines in both companies’ stock prices. Both Occidental Petroleum and SiriusXM Holdings have experienced significant downturns this year, with Occidental down 20% and SiriusXM plummeting nearly 60%. Both stocks reached their 2024 lows on Thursday, just prior to Berkshire’s latest investments. This timing indicates that Buffett and Berkshire Hathaway view the current market valuations of these companies as attractive investment opportunities.
In conclusion, Berkshire Hathaway’s recent acquisitions of Occidental Petroleum and SiriusXM Holdings shares demonstrate a continued confidence in both companies despite their recent stock market performance. The strategic timing of these purchases, coinciding with the stocks reaching their yearly lows, suggests a calculated investment strategy aimed at capitalizing on undervalued assets. These moves reinforce Berkshire Hathaway’s long-term investment philosophy and highlight the potential for future growth in both Occidental Petroleum and SiriusXM Holdings.
