Berkshire Hathaway Ownership Breakdown: Institutions Hold 54% Stake, Warren Buffett Largest Shareholder

Institutional investors own 54% of Berkshire Hathaway, with 25 investors holding a majority stake of 48%. Insider ownership is 14%. The substantial institutional backing implies significant influence over the company's share price, but institutions can also receive scrutiny from retail investors due to their market moves. The largest shareholder is Warren Buffett with 14% of shares outstanding.

Berkshire Hathaway Inc. (NYSE:BRK.A), led by Warren Buffett, is reportedly in discussions to purchase Occidental Petroleum's (NYSE:OXY) petrochemical business, OxyChem, for approximately $10 billion Berkshire Hathaway Reportedly in Talks to Buy Occidental?s Petrochemical Business^[1]. This potential acquisition, which could be finalized within days, is part of Berkshire's ongoing diversification strategy and aligns with its robust financial position, which includes a record cash reserve of $344 billion Warren Buffett poised for Berkshire Hathaways largest acquisition in three years^[2].

The deal, if successful, would mark a significant milestone for Berkshire Hathaway, potentially becoming one of the conglomerate's most substantial acquisitions since the $11.6 billion acquisition of insurer Alleghany in 2022. The acquisition of OxyChem would expand Berkshire's presence in the energy sector, which is crucial for the company's long-term growth and strategic planning.

Occidental Petroleum, headquartered in Houston, is one of the world's largest oil groups in the United States. The petrochemical division, OxyChem, contributes a significant portion of Occidental's revenue, with basic chemicals and performance chemicals being key products. The acquisition would provide Berkshire with a strong foothold in the petrochemical market, which is crucial for meeting the growing demand for various chemicals in industries such as manufacturing, agriculture, and construction.

The potential acquisition has received mixed reactions from the market. While shares of Occidental Petroleum decreased by 1.8% on the same day the report was released, investors responded positively to the news, lifting Occidental’s stock as the market digested the prospect of the petrochemical business being sold to Berkshire Hathaway Occidental Petroleum shares rise amid Berkshire Hathaway talks for OxyChem unit^[3]. This positive reaction highlights the potential benefits that the acquisition could bring to Occidental's shareholders, including increased liquidity and reduced debt levels.

Berkshire Hathaway's substantial institutional backing, with 54% of shares owned by institutional investors and 25 investors holding a majority stake of 48%, implies significant influence over the company's share price Warren Buffett poised for Berkshire Hathaways largest acquisition in three years^[2]. However, this substantial backing also means that institutions can face scrutiny from retail investors due to their market moves. The largest shareholder is Warren Buffett, who owns 14% of shares outstanding.

As Berkshire Hathaway approaches finalizing the acquisition, investors and analysts will be closely watching to see how this transaction aligns with the company's long-term strategy and its impact on the market. The acquisition of OxyChem could provide Berkshire with a competitive edge in the petrochemical market and solidify its position as a major player in the energy sector.