The Clap Berkshire Hathaway (NYSE: BRK) received approval to acquire up to 50% of Occidental Petroleum’s (NYSE: OXY) shares.
The Deets Berkshire holds more than 20% of Occidental Petroleum’s shares. Buffet has praised Occidental and backed its management over the past few years, indicating that he intends to invest further in the company.
Similar Scenario In the past, Buffett gradually increased his stake in the railroad Burlington Northern Santa Fe, until he eventually ended up acquiring the entire company.
Why this Matters Occidental Petroleum’s stock went up by around 10% following the news, its biggest gain in 5 months.