On February 7, 2025, Warren Buffett (Trades, Portfolio), the esteemed investor and Chairman of Berkshire Hathaway, executed a significant stock transaction involving Occidental Petroleum Corp (OXY, Financial). This transaction saw the addition of 763,017 shares at a price of $46.82 per share, resulting in a 0.01% impact on Buffett's extensive portfolio. This move further solidifies Buffett's position in Occidental Petroleum, a company that has been a part of the firm's investment strategy for some time.

Warren Buffett (Trades, Portfolio): The Oracle of Omaha

Warren Buffett (Trades, Portfolio), often referred to as "The Oracle of Omaha," is renowned for his exceptional investment acumen. As the Chairman of Berkshire Hathaway, Buffett has transformed the company from a textile firm into a major insurance conglomerate. His investment philosophy is deeply rooted in value investing, a strategy he honed under the tutelage of Benjamin Graham at Columbia University. Buffett's approach emphasizes acquiring companies at a discount to their intrinsic value and holding them for the long term. This disciplined strategy has consistently outperformed the market, making Buffett's investment moves closely watched by investors worldwide.

Occidental Petroleum Corp: A Global Energy Player

Occidental Petroleum is an independent exploration and production company with operations spanning the United States, Latin America, and the Middle East. As of the end of 2023, the company reported net proved reserves of nearly 4 billion barrels of oil equivalent, with net production averaging 1,234 thousand barrels of oil equivalent per day. The company's operations are divided into segments such as oil and gas, chemicals, and midstream marketing. With a market capitalization of $45.61 billion, Occidental Petroleum is a significant player in the oil and gas industry.

Details of the Stock Transaction

The recent addition of shares increased Buffett's total holdings in Occidental Petroleum to 264,941,431 shares, representing 28.24% of the firm's holdings in the stock. This substantial position accounts for 4.66% of Buffett's overall portfolio. The transaction underscores Buffett's confidence in Occidental Petroleum's potential for long-term value creation, aligning with the firm's investment philosophy of acquiring undervalued companies with favorable prospects.

Financial Metrics and Valuation of Occidental Petroleum

Occidental Petroleum's stock is currently priced at $48.61, with a price-to-earnings (PE) ratio of 12.66. The stock is considered modestly undervalued, with a [GF Value](https://www.gurufocus.com/term/gf-score/OXY) of $54.47. The company's [GF Score](https://www.gurufocus.com/term/gf-score/OXY) is 73/100, indicating likely average performance. The [Financial Strength](https://www.gurufocus.com/term/rank-balancesheet/OXY) is ranked 5/10, while the [Profitability Rank](https://www.gurufocus.com/term/rank-profitability/OXY) is 6/10, reflecting a stable financial position and moderate profitability.

Market Performance and Growth Indicators

Since the transaction, Occidental Petroleum's stock has experienced a 3.82% gain. Since its IPO, the stock has seen a remarkable 743.92% increase. The company's revenue growth over the past three years is 14.90%, with a gross margin growth of 6.40%. These indicators suggest a robust growth trajectory, supported by the company's strategic operations and market positioning.

Other Notable Investors in Occidental Petroleum

In addition to Warren Buffett (Trades, Portfolio), other prominent investors holding shares in Occidental Petroleum include Dodge & Cox, Prem Watsa (Trades, Portfolio), and Smead Value Fund (Trades, Portfolio). Notably, Berkshire Hathaway Inc is the largest holder of Occidental Petroleum shares, further emphasizing the firm's strategic interest in the company.

Transaction Analysis

This strategic acquisition by Warren Buffett (Trades, Portfolio) highlights the firm's continued confidence in Occidental Petroleum's potential for value creation. The transaction not only strengthens Buffett's position in the company but also aligns with the firm's long-term investment strategy. As Occidental Petroleum continues to demonstrate growth and stability, this move is likely to have a positive influence on both the stock and Buffett's portfolio.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.