Warren Buffett’s Berkshire Hathaway investment vehicle has upped its bet on big oil with the acquisition of another 3.9 million shares in Occidental Petroleum.
Berkshire Hathaway now owns 25.8% of the Houston-based oil company, a stake worth more than US$14 billion.
Buffett said at this year’s annual meeting that Berkshire does not intend to take control of Occidental, but the stakebuilding comes at a time when consolidation within the oil sector has ramped up markedly.
Chevron this week announced the US$53 billion acquisition of rival Hess just a couple of weeks after peer Exxon bought Pioneer Natural for US$59.5bn.
Berkshire Hathaway is also Chevron’s largest shareholder.
Buffett, renowned as the Sage of Omaha for the success of Berkshire Hathaway and how many of its investors have become millionaires, says he measures investments in decades and focuses on what he has analysed to be well-run companies.
Shares in Occidental rose 1.5% to US$64.18 overnight.