Warren Buffett's AI Bets: 24.1% of Berkshire Hathaway's $287 Billion Portfolio

Warren Buffett, the renowned investor and CEO of Berkshire Hathaway, has long been known for his value investing approach, which involves buying undervalued stocks and holding them for the long term. In recent years, Buffett has been trimming his holdings in some of his most iconic investments, such as Apple and Coca-Cola, while adding to his positions in other companies. Two stocks that have caught the attention of Wall Street analysts are Occidental Petroleum and Union Pacific, which Buffett has been buying aggressively in 2024. According to a couple of analysts, these stocks could rise by 19% and 20% respectively, presenting an attractive opportunity for investors.
Occidental Petroleum is an oil and gas exploration and production company, with a significant presence in the Permian Basin. The company has been a favorite of Buffett's for many years, and he has been increasing his stake in recent quarters. In the second quarter of 2024, Buffett's company, Berkshire Hathaway, added 14.5 million shares of Occidental to its portfolio, bringing its total holding to 121.8 million shares. Occidental's stock price has risen by about 15% year-to-date, but analysts see further upside. Morgan Stanley analyst Devin Yanda has a price target of $75 for Occidental, which is about 19% higher than its current price. Yanda believes that the company's strong Permian Basin assets and its focus on cost-cutting measures will drive growth in the coming years.
Union Pacific is a railroad company that operates in the Western United States. Buffett has been increasing his stake in Union Pacific since the fourth quarter of 2023, and Berkshire Hathaway now owns about 19% of the company's outstanding shares. Union Pacific's stock price has risen by about 10% year-to-date, but analysts see even more upside. JPMorgan analyst Brian Ossenbeck has a price target of $240 for Union Pacific, which is about 20% higher than its current price. Ossenbeck believes that the company's strong operating performance and its focus on cost-cutting measures will drive growth in the coming years.
Both Occidental Petroleum and Union Pacific have strong business models and are well-positioned to benefit from long-term trends in their respective industries. However, there are also risks to consider. Occidental is exposed to commodity price fluctuations and geopolitical risks, while Union Pacific faces competition from other railroad companies and regulatory challenges. Nevertheless, Buffett's investments in these two companies suggest that he sees significant upside potential, and analysts agree. Investors looking for exposure to these growth opportunities may want to consider adding Occidental Petroleum and Union Pacific to their portfolios.

In conclusion, Warren Buffett's investments in Occidental Petroleum and Union Pacific suggest that he sees significant upside potential in these companies. Analysts agree, with price targets indicating potential gains of 19% and 20% respectively. While there are risks to consider, these stocks present an attractive opportunity for investors looking for exposure to growth opportunities in the energy and railroad sectors.