Warren Buffett is right to be devouring shares of oil giant Occidental Petroleum (OXY), says one long-time oil markets strategist.
The billionaire investor’s Berkshire Hathaway (BRK-A, BRK-B) scooped up another 18.1 million shares of Occidental for close to $1 billion this week. The latest purchases come hot on the heels of Berkshire spending $6 billion or so in the prior two weeks to buy up Occidental shares.
Berkshire now owns nearly 14.6% of Occidental Petroleum through his roughly 140 million shares.
Energy expert and portfolio manager Rob Thummel of Tortoise Capital says there is more behind Buffett’s buying binge than a play on elevated oil prices.
“Occidental is benefiting from the higher oil prices. The other factor a lot of energy companies are doing that is changing the game for energy companies and how investors perceive them, is that Occidental has actually embraced the…
