‘Buffett Effect’ Is Making Occidental’s Stock Trade Like Exxon’s
- Berkshire buys Occidental shares when they fall below $60
- Buying has sheltered stock from worst of energy sector slump
Warren Buffett
Photographer: Christopher Goodney/BloombergThis article is for subscribers only.
Warren Buffett is shielding Occidental Petroleum Corp. from the worst of the drubbing hitting oil and gas producers and making the stock trade like fossil fuel firms more than five times it size.
For much of the past year, the billionaire investor’s Berkshire Hathaway Inc. has been snapping up Occidental stock whenever it falls under $60, a level shares closed below on Friday as crude prices slid. Buffett’s firm is the largest stockholder with nearly 222 million shares, almost a 25% stake, according to data compiled by Bloomberg — and regulatory permission to buy more.