Taking a page from an expert’s book is often a wise decision — and if anyone can be called an expert when it comes to investing, it’s Warren Buffett.
The chairman and chief executive officer (CEO) of Berkshire Hathaway (NYSE: BRK.B) is in rare company when it comes to picking stocks — as he has a long history of outperforming the market. However, the ‘Oracle of Omaha’ didn’t accomplish this feat through risky trades, complex derivatives, or timing the market.
Instead, Buffett’s approach relies on value investing — in simple terms, buying stakes in great businesses that are trading at an attractive valuation. The billionaire’s logic is simple — sooner or later, valuations even out — so finding underappreciated businesses and playing the long game is his calling card.
Picks for you
There is one caveat that needs to be mentioned — Buffett’s approach is honed in on the long term. In his own words, his preferred holding period is ‘forever.’ For investors who have the patience to follow in his footsteps, however, copying his investments can be a profitable strategy.
While Berkshire has been a net seller of equities as of late, it is increasing its stake in several companies. Back in 2019, Buffett first started buying shares of Occidental Petroleum (NYSE: OXY). Finbold’s insider trading radar has just picked up another investment that the billionaire has made in the energy company.
Receive Signals on SEC-verified Insider Stock Trades
This signal is triggered upon the reporting of the trade to the Securities and Exchange Commission (SEC).
Warren Buffett doubles down on favorite energy stock amidst decline
On February 7, Warren Buffett purchased 763,017 units of OXY stock, per an SEC Form 4 filing made public on February 11. The acquisition was made at an average price of $46.81 per Occidental Petroleum share. In total, the transaction was valued at $35,716,825.
Following the sale, Berkshire holds 264,941,431 units of Occidental Petroleum stock — a roughly 28.3% stake. This makes Berkshire the largest shareholder in the energy company.
However, many have called Buffett’s investment in the company into question — the oil giant has been on a steady decline since early Q2 of 2024. In April, OXY stock reached a yearly high of $69.25 — by press time on February 12, prices had receded to $48.83 per share, marking a 29.48% decline.
Occidental Petroleum will hold its Q4 and full-year 2024 earnings call on February 19. Readers who have a sufficiently long time horizon might want to keep a close eye on the quarterly report — as it could serve to move prices further down and provide an attractive entry point for a long-term, buy-and-hold position.
Featured image via Shutterstock
