Berkshire Hathaway buys Occidental during sell-off

Warren Buffett’s Berkshire Hathaway has made a significant investment in three companies during a recent market sell-off. The conglomerate bought 8.9 million shares of Occidental Petroleum for $405 million, 5 million shares of Sirius XM Holdings for $113 million, and 234,000 shares of VeriSign for $45 million. The purchases were made over three trading sessions and totaled more than $560 million. Buffett, 94, appeared to take advantage of the market downturn to buy these stocks at a lower price. Occidental Petroleum shares have fallen more than 10% this month and are down 24% for the year. The company, founded by legendary oilman Armand Hammer, is now Berkshire’s sixth-largest equity holding. Sirius XM has seen an even bigger decline, with its stock falling 23% this month and 62% this year. The satellite radio company has been struggling with subscriber losses and demographic shifts.

Buffett’s value investing strategy

VeriSign, an internet domain provider, has also had a tough year, with its stock down 6% in 2024. Berkshire first bought the tech stock in 2013 and hasn’t adjusted the stake in years. Buffett’s purchases reflect his long-held investment philosophy of seeking value during periods of market distress. The billionaire investor has a history of making strategic acquisitions when stocks become more affordable. The recent investments come after Buffett divested from major stakes in Apple and Bank of America. Berkshire Hathaway now owns more than 10% of each of the three companies, requiring immediate reporting to the Securities and Exchange Commission. Despite the challenges faced by Occidental Petroleum, Sirius XM Holdings, and VeriSign, Buffett’s investments signal his confidence in their long-term potential. The market will be watching closely to see how these stocks perform in the coming months and years.