Stock Market

Berkshire Hathaway’s Active Energy Investments and Share Repurchases

Warren Buffett, the CEO of Berkshire Hathaway (NYSE:BRKa), along with his investment partners Ted Weschler and Todd Combs, have been engaged in significant energy sector investments, with a specific focus on Occidental Petroleum (NYSE: OXY). Since the beginning of 2022, they have acquired more than 228 million shares, representing an estimated expenditure of $11.2 billion. Their decision to invest in Occidental Petroleum was based on their expectations of rising crude oil prices and the company’s revenue generated from drilling operations. Furthermore, Berkshire Hathaway holds warrants for Occidental common stock, a part of the agreement that facilitated Occidental’s acquisition of Anadarko in 2019.

Nonetheless, Buffett’s primary preference remains investing in Berkshire Hathaway itself. Since 2022, Buffett and Charlie Munger, the Executive Vice Chairman, have approved share buybacks totaling nearly $14 billion. This comes in addition to the $71 billion in share repurchases they have overseen since the middle of July 2018, spanning over 20 quarters. These buybacks are intended to enhance the company’s attractiveness to investors, reward long-term shareholders by increasing their ownership stakes, and reaffirm Buffett’s confidence in the enterprise he has built over nearly six decades. It’s worth noting that this strategy echoes the successful share buyback approach taken by Apple (NASDAQ:AAPL).

Berkshire Hathaway’s trading activities maintain transparency through mandatory SEC filings, particularly in the Form 13F and Form 4. These forms offer detailed insights into positions where Berkshire Hathaway holds at least a 10% stake in a publicly traded company.

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