These shares doubled their value in 2022, after the rise in oil prices driven by the conflict between Russia and Ukraine.
Warren Buffettthe founder of Berkshire Hathaway, re-invest in stocks the oil firm Occid.Petrol Cor. He had already made a heavy investment, and with this latest one, his participation reaches 22.2%.
The price of company shares in which Berkshire Hathaway decides to invest they doubled their value in 2022driven by the higher oil prices after Russia invaded the Ukraine.
Between March 3 and 7Berkshire paid about US$355 million by 5.8 million shares from the oil company Before that, Buffett’s company had bought Occidental shares in September 2022, at which point it became the 21.4% Of the same.
Prior to that, in August 2022, Berkshire obtained the permit from the US Federal Energy Regulatory Commission for buy up to 50% of the shares Western ordinary.
However, Occidental is only one of the many companies in which Berkshire owns shares. Also part of the portfolio of the company directed by Buffett is the automobile insurer Geico, the railway BNSF, Dairy Queen, Fruit of the Loom and other actions, like Manzana.
The benefits of having these actions
As a result of this investment process in the oil firm, Buffett’s company currently owns about 200.2 million shares from Occidental for a value of US$12.2 billion dollarsaccording to the closing price of last Tuesday, of US$60.85.
These actions would generate around US$144 million of annual dividends, after 38% increase that the company announced last month. In addition, Berkshire owns 10 billion preferred shares from Western. The latter generate US$800 million of annual dividends and warrants to purchase another $5 billion of common shares.
Source: Ambito
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