Warren Buffett’s Berkshire Hathaway recently made significant additions to its equity portfolio. The purchases, totaling over $600 million, were disclosed due to regulatory requirements. Buffett bought 8.9 million shares of Occidental Petroleum for $409 million, 5 million shares of Sirius XM for $107 million, and 474,000 shares of VeriSign for $94 million.
These purchases were made in late December and early January. Occidental Petroleum has been a major focus for Buffett since his initial $10 billion investment in 2019. The company holds a dominant position in the Permian Basin, one of North America’s lowest-cost sources of oil.
Berkshire Hathaway now holds a 28.2% stake in Occidental. Berkshire Hathaway has also been consistently buying Sirius XM shares.
Buffett boosts Berkshire’s top investments
The firm now holds a 34.6% share of the company. VeriSign, a long-time holding in Berkshire Hathaway’s portfolio, stands out as the best investment for those looking to follow Buffett’s moves. The company has exclusive registration rights for .com and .net domain names.
Its contracts with the Internet Corporation for Assigned Names and Numbers (ICANN) automatically renew as long as performance criteria are met. VeriSign has demonstrated tremendous revenue growth and operating leverage over the last decade. New, competing top-level domains have entered the market, but .com and .net remain the most in demand.
Buffett’s investment philosophy focuses on acquiring “truly wonderful businesses.” Although VeriSign trades at a higher multiple compared to Occidental and Sirius XM, its strong and predictable revenue growth justifies the premium. VeriSign’s dominant market position and consistent price increases make it an attractive long-term investment. Despite trading at higher multiples, the reliable revenue and earnings growth position VeriSign as the best of Buffett’s recent investments.
