Warren Buffett’s Berkshire Hathaway bought more than $560 million worth of stocks over the last three days. The company purchased 8.9 million shares of Occidental Petroleum for $405 million. It also bought about 5 million shares of Sirius XM for around $113 million and approximately 234,000 shares of VeriSign for roughly $45 million.
The 94-year-old legendary investor appeared to have taken advantage of a broad market pullback that made these stocks much cheaper. Occidental shares have dropped more than 10% this month, bringing its 2024 losses to 24%. The energy company is Berkshire’s sixth-biggest equity holding.
However, Buffett has ruled out a full takeover. The sell-off in Sirius XM has been more dramatic. The satellite radio company is currently in a six-day losing streak, falling 23% this month and 62% this year.
Buffett bets on falling stocks
Berkshire started increasing its stake after billionaire John Malone’s Liberty Media completed its deal to combine its tracking stocks with the rest of the audio entertainment company. Now, Berkshire’s stake has risen to about 35%.
SiriusXM has been grappling with subscriber losses and unfavorable demographic shifts. Internet name VeriSign has also had a rough year, with its stock down 6% in 2024, significantly underperforming the tech sector. Berkshire first bought the tech stock in 2013 and hasn’t adjusted the stake in years.
The strategic move suggests that Buffett is capitalizing on the lowered stock prices, potentially anticipating a future rebound in these companies. Investors often look to Berkshire Hathaway’s acquisitions for market signals, given Buffett’s track record of successful investments. The increased holdings in Occidental Petroleum, SiriusXM, and VeriSign may therefore attract further investor interest in these stocks.
Following the announcement of Berkshire’s additional investments, shares of Occidental Petroleum and SiriusXM climbed approximately 4.5% and 10%, respectively, in Friday trading. The growing share of Berkshire Hathaway points to ongoing faith in Occidental’s long-term performance and its importance to its portfolio, following a sequence of investments made by the company in Occidental starting in 2022.
