Berkshire Hathaway paid about $391 million for nearly 6.7 million additional shares of the energy name between last Thursday and Monday. After steadily ramping up its stake, Berkshire now owns 188.5 million shares of Occidental, equal to a 20.2% position. It surpassed a key threshold where Berkshire could record some of the oil company's earnings with its own.

Berkshire's operating earnings totaled $9.283 billion in the second quarter. That marked a 38.8% increase from the same quarter a year ago. Occidental has been the best-performing stock in the S & P 500 this year, up about 115%.

Berkshire also owns $10 billion of Occidental preferred stock, and has warrants to buy another 83.9 million common shares for $59.62 each. The stake would rise to nearly 27% if Berkshire exercises those warrants. The move also sparked speculation as to whether Berkshire will eventually acquire the whole company.

Analyst: Occidental will remain a strategic equity investment for Berkshire. "OXY has lots of debt, but Berkshire has cash," says Cathy Seifert of CFRA Research. "I'd say that OXY fits some of his recent purchases that need capital investment," she says.
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