1 Reason I'm Watching Occidental Petroleum Stock in 2025

Key Points

• Warren Buffett is Occidental Petroleum's biggest investor.

• Buffett's holding company could end up selling shares in 2025.

• 10 stocks we like better than Occidental Petroleum ›

This will be a big year for Occidental Petroleum (NYSE: OXY). Because of that, I'll be watching the stock price closely over the final months of 2025. I will also be paying very close attention to the actions of Occidental's biggest shareholder: Warren Buffett-controlled Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). There's a good chance we see Buffett unload some Berkshire holdings before the year is up as part of the transition.

Warren Buffett is a huge fan of Occidental Petroleum

To be clear, Warren Buffett seems to like Occidental Petroleum very much. Through Berkshire Hathaway, he said he first bought shares in 2019 after reading the company's annual report. Buffett said he was impressed with how the company was being run, and over the next five years, Berkshire accumulated more than one-quarter of the company's outstanding shares, with warrants to buy even more stock. In 2024, he revealed that he expects Berkshire to hold shares of the company "indefinitely."

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It's important to note, however, that this stake is owned by Berkshire Hathaway, not by Buffett personally. And at the end of 2025, Buffett will finally step down as CEO of Berkshire Hathaway after decades at the helm (he plans to stay on as chairman of the board). Control of the conglomerate's portfolio, therefore, will be handed off to Buffett's lieutenants, who over the years have shown that they do, on occasion, disagree with Buffett, allocating capital into companies and sectors that Buffett historically avoided.

Image source: Getty Images.

What happens after Buffett retires?

Of course, Buffett's investment team is -- for the most part -- very aligned with his vision and values. Nevertheless, all indications are that Occidental's place in Berkshire's portfolio is due to Buffett's personal discovery and bullishness. What will happen to the position once Buffett departs is an open question.

I'll be paying close attention to Berkshire's regulatory filings over the next few months and throughout 2026 as well, to monitor any selling from Occidental's biggest shareholder.

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Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.