Warren Buffett’s company Berkshire Hathaway continues to stockpile shares in Occidental Petroleum.
This reports Marketwatch Friday.
During Tuesday and Wednesday, the company has uploaded 12 million new shares in the company for the net sum of 700 million dollars.
Berkshire Hathaway thus owns 175.4 million shares in the oil company, corresponding to an ownership interest of 18.7 percent.
According to Marketwatch, if Berkshire earns a 20 per cent stake in the oil company, they will probably include a proportionate share of Occidental’s earnings in their own profit. This will mean an annual increase of $ 2 billion in Berkshires reported profits, as Occidental is expected to earn around $ 10 billion after taxes this year. As of today, only dividends paid are reflected in the results.
The stock has gone like a bullet on the stock exchange, and has risen over 108 percent in the last 12 months. According to Bloomberg Terminal, the consensus estimates for the share price are $ 73, a potential upside of 19 percent from the current price of $ 61 per share. action.
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