Warren Buffett’s Berkshire Hathaway took advantage of the December market correction to buy about $560 million worth of stock. According to regulatory filings, Berkshire added 8.9 million shares of Occidental Petroleum, bringing its total stake to more than 28%. The deal, worth $405 million, comes as Occidental shares are down 24% this year. The legendary investor has proven once again that he can capitalize on a bear market. Although he has said he has no plans to buy Occidental outright, the company has become Berkshire’s sixth-largest holding.
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[Korea Today] American investment expert Warren Buffett AI created © Reporter Hyun Seung-min |
Sirius XM was another major Berkshire investment. Berkshire bought 5 million shares of the New York-based satellite radio company for about $113 million, bringing its stake to 35%. Sirius XM has struggled this year, with its stock down 62%. Even after Liberty Media reorganized its stock structure, it has struggled with subscriber losses and demographic changes. Still, Buffett has reassessed the company for the long term and made additional investments.
Berkshire also bought 234,000 shares of VeriSign, an Internet domain management company, for about $45 million. VeriSign has fallen 6% this year, underperforming the technology sector. Berkshire has held VeriSign shares since 2013, and this purchase appears to be an extension of that long-term holding strategy.
Buffett’s investment strategy is based on a philosophy that values long-term value rather than being swayed by short-term market volatility. This purchase is evaluated to have been made by taking advantage of the overall market correction. In particular, energy companies such as Occidental were undervalued amid the volatility of the raw materials market. Sirius XM and VeriSign each have their own challenges, but Berkshire decided to make additional investments, viewing them as long-term opportunities.
Buffett’s investment practices still have a great influence on investors around the world. He is an important example for investors who seek long-term returns by finding value in the stock market downturn. Additional information on Buffett’s investment philosophy can be found in Warren Buffett’s Investment Principles . This case once again proves the importance of maintaining strategic thinking and a long-term perspective even in market volatility.
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