Is it time to dump this Warren Buffett energy stock?
The post Is it time to dump this Warren Buffett energy stock? appeared on BitcoinEthereumNews.com.
Despite his investment expertise, Warren Buffett’s top energy stock pick in the Berkshire Hathaway (NYSE: BRK.A) portfolio continues to struggle. Occidental Petroleum, often regarded as Buffett’s favorite energy investment, has seen its stock price decline despite his ongoing confidence in the company. The Oracle of Omaha’s latest acquisition of Occidental shares came in February 2025, when Berkshire Hathaway purchased 763,017 shares of the Houston-based energy firm for $35.7 million, bringing its total stake to 28.2%. As of the March 21 trading session, OXY closed at $47.94, dipping 0.04% for the day. Year-to-date, the stock remains down more than 3%, and at its current valuation, OXY is trading approximately 21% below Buffett’s initial entry price of $60. OXY YTD stock price chart. Source: Finbold Notably, Occidental is lagging behind sector peers, having failed to deliver the returns many expected, especially given Buffett’s continued confidence in the company. While the legendary investor’s involvement is a source of optimism based on his value investing philosophy, Occidental’s persistent struggles could lead to questions about whether this is a misstep on Buffett’s part or if patience is required. Is OXY still worth buying? To answer this question, it is key to examine the underlying fundamentals likely to affect OXY’s future performance. Indeed, the stock has several catalysts likely to support a bullish case, especially from a financial perspective. In this case, the company hit its $4.5 billion debt repayment target seven months ahead of schedule in Q4 2024, following its $12 billion acquisition of CrownRock in 2023. Occidental posted $3.1 billion in cash flow for the same quarter and $1.4 billion in free cash flow. Additionally, the company divested upstream assets for $1.2 billion, strengthening its balance sheet. The firm also closed in 2024 with strong production and reserve growth. In Q4, Occidental produced 1.46…
Filed under: News - @ March 23, 2025 5:19 pm