Warren Buffett Is Buying Stock Again: Occidental, Chevron & ATVI

“If you do it at the right price, there’s nothing better than buying back part of your own business,” Buffett said at Berkshire’s annual shareholders meeting on Saturday.

Let's see what stocks have been added to his portfolio

$Occidental(OXY)$

Buffett's Berkshire Hathaway again loaded up on Occidental Petroleum stock this week purchasing 5.9 million shares for about $345 million. He purchases shares on Monday and Tuesday for average per-shares prices ranging from $55.99 to $58.37, according to anSEC filing. The purchases bring Berkshire's stake to 142.3 million shares.

In the first quarter, Berkshire purchased $7.0b worth of the Occidental. Buffett noted at the Berkshire annual meeting over the weekend that he was able to buy 14% of the petroleum refinerover only a two-week period.

$Chevron(CVX)$

Among Berkshire’s largest buys in the first quarter were Chevron and Occidental Petroleum. Those are both big oil producers, with generous cash-return plans. Buffett likes companies that buy back a lot of stock and pay big dividends. Share buybacks mean Berkshire’s ownership stake will rise over time, and dividends throw cash back to the parent company to redeploy elsewhere.

A first-quarter surge in oil prices means lots of earnings and free cash flow to fund those shareholder-return programs at Chevron and Occidental. And both stocks carry valuation multiples well below the S&P 500 average. The index trades at about 18 times expected earnings for the coming year. Chevron stock goes for less than 11 times and Occidental goes for just 7.5 times.

The energy buys weren’t even contrarian in the first quarter: Chevron stock returned 40% including dividends, while Occidental soared 96%. Berkshire likely bought some $17 billion worth of Chevron and about $7 billion of Occidental in the period.

$Activision Blizzard(ATVI)$

Buffett revealed on Saturday that Berkshire had increased its stake in Activision Blizzard to about 9.5% since the start of 2022, suggesting purchases of around $4.5 billion this year. It’s hard to imagine the 91-year-old Buffett being a big videogame enthusiast, and, sure enough, the Activision bet doesn’t have anything to do with the business—it’s a merger-arbitrage play.

Microsoft has agreed to purchase Activision for $95 a share, but the shares have been trading in the high $70s and low $80s in recent months. Buffett expects the deal to go through and for that gap to close. Once again, it’s a straight forward, company-specific thesis.

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  • Evs, Oils and Gas: Which one do you hold?

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  • Wayneqq
    ·2022-05-06
    I would not follow directly because it is usually too late.. if i want to follow.. i would buy $Berkshire Hathaway(BRK.B)$ directly
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  • Testingnickn
    ·2022-05-06
    As Warren Buffett once said “I never invest In anything that I don’t understand.” From my previous post of $Marathon(MRO)$+ $ConocoPhillips(COP)$, I understand oil while healthcare is my speciality.
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  • Chilli Padi
    ·2022-05-06
    Good time to accumulate value stocks-good profitable co that took a beating becos of market conditions; the current uncertainty of fed actions in response to high inflation, war& post pandermic issue
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  • BenjiFuji
    ·2022-05-06
    I will add more shares if the price is < intrinsic value of the stock, with a gd MoS. No EV, oil or gas now as it is out of CoC. Buying $Berkshire Hathaway(BRK.B)$ is an option.[Miser]
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  • SR050321
    ·2022-05-06
    I will add $Berkshire Hathaway(BRK.B)$ if you click on the 3 tickers all profitable, give dividend, PB value 5 and below, so i think they are doing the right thing [Happy]
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  • lappiloco
    ·2022-05-06
    holding on to EVs, will add more as Tesla boosting production in China with double shifts but with alot of attention to their welfare.
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  • TWJ84
    ·2022-05-06
    I would buy more $Activision Blizzard(ATVI)$ seems pretty straightforward and the company is pushing the warcraft franchise further
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  • deal2deal
    ·2022-05-06
    Will add more shares because am planning to invest for the long-term, are starting with small amounts invested through dollar-cost averaging.
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  • Big Cat
    ·2022-05-06
    ... $Activision Blizzard(ATVI)$ , I was also interested in it. But, a year like too long [Grin] = no hurry [Cool].
    I thought he's not ksing it the past [Speechless]. Guess no choice [Sly].
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    • Big Cat
      given how bad the economy is.
      Anyway, he was already a shareholder but just that he added more [Sly].
      2022-05-06
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  • Bonta
    ·2022-05-07
    Am increasing more positions in O&G. Reason being the supply chain will not recover in the short run. The push for green, will only prevent expansion for more O&G.
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    • Bonta
      Once china lock down ends, demand for O&G will surge again. With limited increase in supply which is also impacted by russia sanctions, but increase in demand, O&G prices will only increase
      2022-05-07
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  • bwjx
    ·2022-05-07
    Oil and Gas for these few months. EV in the long run but only probably Tesla as it has the biggest moat.
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  • Huiz84
    ·2022-05-08
    Oil & gas , i think i will hold this at this moment because recently this industry seem to be performing well and also with the current russia & war situation that might affect it.
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  • StarLuck
    ·2022-05-08
    I will hold Oi&Gas, recently this industry seem to be performing well and also with the current russia & war situation that might affect it. It will stay high for coming months ahead
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  • Ultrahisham
    ·2022-05-09
    I will add more shares but not in the oil and gas sector which I think have run up too much and seems overvalued. I would prefer to hold EV stocks rather than oil and gas.
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  • Falafulu
    ·2022-05-09
    I think o&g have run up too much and maybe risky to buy them at current prices. Will look at undervalued sectors like tech growth instead
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  • Soyabean89
    ·2022-05-06
    Commodities is the new gold in this era of war, blockade, high inflation

    Wheat and other agricultural hammered hard with the world bread basket destroyed by pudding and agricultural need time to grow

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  • Maxangelos
    ·2022-05-06
    Thanks for the analysis! Oils is the way to go during these tubulent times!
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  • Big Cat
    ·2022-05-06
    I won't add any oil stocks like Warren Buffett because I knows nothing about oil [Thinking]. He may be right for choosing oil given the Russia-Ukraine War... Damn that Buffett [Sly] ...
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  • CKYong
    ·2022-05-06
    我任然相信巴菲特
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  • tarotsgirl
    ·2022-05-06
    all 3 are good stock to hold. cant say which is better as its meant to be to diversified
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