Warren Buffett’s near 20 percent stake in Occidental Petroleum has some investors expecting the billionaire to eventually absorb the oil producer and turn it into a “cash machine” that feeds his other investments.
Buffett’s Berkshire Hathaway has been snapping up Occidental shares since 2019, when it bought around $10 billion in preferred stock to help the company finance a deal for a rival. That investment came with warrants for 83.9 million shares.
Buffett, who told shareholders earlier this year that cash is like oxygen, is likely attracted by estimates showing Occidental’s cash flow potential has soared, analysts said.
Berkshire Hathaway recently purchased another 1.94 million shares of Occidental Petroleum Corp, giving it an $11.4 billion stake and putting it nearer the 20 percent threshold where it could record some of the oil company’s earnings with its own….