The post Is this Warren Buffett’s biggest stock market miss?  appeared on BitcoinEthereumNews.com.

Over the years, Berkshire Hathaway (NYSE: BRK.A) founder Warren Buffett has built a reputation for his stock market prowess, where he focuses on a value-based, long-term investment strategy for select companies.  However, returns from Buffett’s bet on energy stock Occidental Petroleum (NASDAQ: OXY) appear to have encountered turbulence despite remaining steadfast in his purchases over the past 12 months.  Buffett’s buy signals coincided with relative consolidation for OXY, whose equity has since dropped, leaving Oracle of Omaha in the red on all his positions bought in the past year. Also, with OXY trading at $49 as of press time, the stock continues to face notable downturns, plunging 16% in 2024. The bearish signs are further highlighted by the share price dipping below its 200-week simple moving average (SMA).  OXY share price with Warren Buffett buy signals. Source: TrendSpider Overall, the stock’s current valuation is well below the price levels of $60-$70 at which Buffett made his purchases, suggesting that the legendary investor is now “underwater” on these buys. His latest purchase occurred in June when Berkshire Hathaway bought shares totaling 7.3 million for $60 a peice. Buffett now holds over 255 million shares, representing a 28.8% stake in the company.  In December 2023, the legendary investor acquired 5.2 million shares for approximately  $312.1 million. Additionally, Berkshire holds warrants to buy 83.9 million more Occidental Petroleum shares at $59.62 and owns 84,897 shares of preferred stock. Should Buffett remain bullish on the stock and redeem these shares, Berkshire’s ownership could exceed 40%. Why OXY stock is struggling  Occidental Petroleum shares have been under pressure due to several contributing factors. For instance, declining oil and natural gas prices have weighed down the general energy sector, negatively impacting Occidental. At the same time, the company continues to struggle with debt stemming from its…

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Filed under: News - @ September 27, 2024 2:26 pm