What stock did Warren Buffett just buy?
Warren Buffett has been a significant investor in the stock market, but he recently bought a stock that isn’t very popular. He bought Occidental Petroleum for $10.50. That’s a low price, considering that Occidental makes a lot of products for the oil industry. It’s also the third-largest publicly traded oil company. The other two are Exxon and Conoco.
Apple (AAPL) is one of Warren Buffett’s top investments. This shrewd investor has several reasons for owning Apple, but it’s no secret that he is a big fan.
Having purchased 3.9 million shares of Apple in the first quarter of 2016, Buffett now owns over 5% of the iPhone maker. At this point, Berkshire Hathaway’s position in Apple is worth an estimated $160 billion.
Apple’s stock has been in a slump over the past few months as the tech giant has struggled to keep up with demand for the iPhone. Its market value now exceeds $2 trillion, making it one of the world’s largest companies.
Despite being a leader in the smartphone industry, Apple is also under pressure from supply chain constraints and rising interest rates. However, the company has a long-term strategy to attract quality customers and brand loyalty.
Warren Buffett has bought a stake in Occidental Petroleum Corporation in a move that has been widely reported. He has been betting on Occidental for several years. At one point, Buffett had a 10% stake in the company. But the Omaha, Nebraska-based investor recently sold the remainder of his OXY shares.
Buffett said he likes Occidental’s financial turnaround, new shareholder-return framework, improved balance sheet, and strong US presence. He also praised Chief Executive Vicki Hollub’s commitment to fiscal discipline.
Occidental has made significant progress this year, rapidly paying down debt and generating cash flow. It has also increased its asset base in the Gulf of Mexico, Algeria, and the Permian. The company has also invested in carbon capture technology.
Warren Buffett has been on a buying binge. He purchased 68.9 million shares of Paramount Global in the first quarter, adding to his stake to over 91 million Class B shares.
The company owns CBS, Comedy Central, Nickelodeon, and Showtime. It also holds coveted sports content, including rights to college football games from the Southeastern Conference and the NFC and AFC regular seasons.
Paramount Global has plans to expand its live streaming services, including a partnership with Sky, the largest European cable company. It will launch in Germany, Italy, and South Korea later this year. Meanwhile, the streaming service added more than 4.6 million subscribers in the third quarter.
Buffett’s investment in Paramount Global could indicate that he believes the streaming market is poised for growth. And it’s certainly a good bet that investors have underestimated the streaming potential.
Bank of New York Mellon (BNY) is one of the world’s largest custodial banks. It serves individuals, corporations, and investment funds with deposit accounts, trusts, and financial services. The company has more than $42 trillion in assets under administration.
BNY Mellon specializes in asset management, custodial services, and fixed-income clearing as a global investment firm. With a fee-based revenue model, the bank is more resilient during downturns. In addition, the company has a high yield, making it a good investment for investors who want to earn a higher return than the S&P 500.
Warren Buffett has long been a fan of bank stocks. For years, Berkshire Hathaway has bought and sold shares in large American banks, including Wells Fargo & Co. WFC -0.1%, Goldman Sachs GBR +0.1%, and JPMorgan Chase JS +0.1%. When the economy took a downturn in 2008, Buffett injected $5 billion into Goldman Sachs. He also took an interest in U.S. Bancorp, the parent company of U.S. Bank (USB).
Berkshire Hathaway sold a substantial portion of its holdings in the US Bank, dropping 56% of its stake. However, the company still holds 62.2 million shares of the stock.
Warren Buffett’s Berkshire Hathaway recently announced a significant investment in Taiwan Semiconductor Manufacturing Company. The company is the world’s largest manufacturer of semiconductor chips. It supplies chip giants like Apple and Nvidia.
TSM’s stock has taken a beating this year, but it is still an attractive long-term investment. TSMC offers high gross margins and a solid balance sheet. In addition, the company’s products serve a broad range of end markets.
While a significant investment by Buffett is not exactly a new development, it may have helped raise the profile of Taiwan’s chipmaker. Several industry watchers had been wondering why Berkshire would invest in TSMC.
Buffett’s purchase is an excellent example of the value investing he has long practiced. Buffett’s strategy is centered on finding the best-valued stocks and pursuing growth potential.
