Warren Buffett, the renowned investor, has been selling stocks in the stock market throughout 2023. However, there is one stock that he continues to buy: Occidental Petroleum. Despite the challenges faced by Occidental, including overpaying for assets and the impact of COVID-19, Buffett has expressed confidence in the company's management and its position in the Permian basin. Find out why Occidental has become Buffett's favorite energy stock and how its recent acquisition of CrownRock for $12 billion has further solidified his confidence.
Warren Buffett's Stock Market Activity in 2023
Warren Buffett, the legendary investor, has been actively involved in the stock market throughout 2023. He has made significant selling and buying decisions, which have caught the attention of investors and analysts alike.
Berkshire Hathaway, Buffett's conglomerate, has sold stocks worth $32.8 billion and purchased stocks worth $9.1 billion as of September. This indicates a strategic shift in Buffett's investment portfolio.
One notable sale made by Buffett this quarter was approximately $1.3 billion of HP stock. However, amidst these selling activities, there is one stock that Buffett continues to buy: Occidental Petroleum.
Buffett's Confidence in Occidental Petroleum
Despite the challenges faced by Occidental Petroleum, including overpaying for assets and the impact of COVID-19, Warren Buffett has continued to invest in the company. His confidence in Occidental is further supported by the company's recent acquisition of CrownRock for $12 billion.
Buffett's faith in Occidental's management team and the company's position in the Permian basin has contributed to his preference for this energy stock over others, such as Chevron, which he has been selling off shares of.
While Occidental's move to acquire CrownRock may put pressure on its free cash flow, Buffett's belief in the long-term potential of the company remains steadfast.
Occidental Petroleum: Buffett's Favorite Energy Stock
Occidental Petroleum has emerged as Warren Buffett's favorite energy stock, as he continues to invest in the company despite its challenges. This preference is evident from Buffett's decision to increase his holdings in Occidental.
One of the reasons for Buffett's favoritism towards Occidental could be its valuation and price to free cash flow ratios. While Chevron, another energy company, has a higher valuation, Occidental has a more favorable price to free cash flow ratio.
Furthermore, Occidental's recent acquisition of CrownRock for $12 billion has strengthened its position in the market and further solidified Buffett's confidence in the company.