Berkshire Hathaway's Occidental Petroleum Stake: A Crucial Year Ahead

Occidental Petroleum (OXY) will be a significant stock to watch in 2025 due to Warren Buffett's involvement. Berkshire Hathaway, Buffett's company, owns a quarter of OXY's shares and has warrants to buy more. Buffett expects Berkshire to hold the shares indefinitely, but after he retires as CEO in 2025, control of Berkshire's portfolio may change, potentially affecting OXY's position.

As 2025 approaches, Occidental Petroleum (OXY) is set to be a significant stock to watch, primarily due to Warren Buffett's involvement. Berkshire Hathaway, Buffett's holding company, currently owns more than a quarter of OXY's outstanding shares and holds warrants to acquire additional stock. Buffett has expressed a strong bullishness towards OXY, having first invested in 2019 and accumulating more than a quarter of the company's shares over the next five years [1].

Buffett's investment in OXY is notable for several reasons. Firstly, his investment in OXY reflects his personal endorsement of the company's management and strategy. Secondly, Berkshire Hathaway's ownership of a substantial portion of OXY's shares indicates a long-term commitment to the company's success. However, the upcoming transition in Berkshire Hathaway's leadership raises questions about the future of OXY's position in the conglomerate's portfolio.

In 2025, Buffett will step down as CEO of Berkshire Hathaway after decades at the helm, but he plans to remain as chairman of the board. This transition could potentially lead to changes in Berkshire's investment strategy, as Buffett's lieutenants may allocate capital differently. While Buffett's investment team is largely aligned with his vision, the future of OXY's position in Berkshire's portfolio remains uncertain.

Investors should pay close attention to Berkshire's regulatory filings over the next few months and throughout 2026 to monitor any selling activity from Occidental's biggest shareholder. Additionally, several research analysts have commented on OXY's stock, with mixed ratings and target prices. As of July 2025, the consensus rating is "Hold" with a target price of $54.65 [2].

In conclusion, 2025 is a pivotal year for OXY, with Buffett's influence and Berkshire Hathaway's potential portfolio changes being key factors to watch. While OXY's future is uncertain, investors should carefully consider the company's fundamentals and the broader market trends before making any investment decisions.

References:
[1] https://finance.yahoo.com/news/1-reason-im-watching-occidental-140313868.html
[2] https://www.marketbeat.com/instant-alerts/filing-quantitative-investment-management-llc-invests-214-million-in-occidental-petroleum-corporation-oxy-2025-08-25/