Warren Buffett doesn’t do holiday sales but December’s market pullback was the kind of clearance rack event that even The Oracle of Omaha can’t resist. In a three-day buying blitz, Berkshire Hathaway dropped over $560 million on Occidental Petroleum, Sirius XM, and VeriSign, according to regulatory filings.
The bulk of the haul, $405 million, went to Occidental Petroleum, with Buffett scooping up 8.9 million more shares and boosting Berkshire’s stake in the Houston-based energy giant to over 28%. Oxy’s down 24% this year, but the Oracle isn’t sweating it. Oil prices may be on a rollercoaster, but this is Buffett’s sixth-largest equity play. And no, at 94 years old he’s not taking over the company, so let’s put that rumor to bed (again).
Then there’s Sirius XM and VeriSign, basically the “impulse buy” candy at the checkout lane. Berkshire picked up $113 million worth of Sirius XM, the struggling satellite radio company that’s down a brutal 62% this year, and $45 million in VeriSign, the tech name that’s been quietly underperforming for a decade. These smaller bets probably came from Buffett’s lieutenants, Todd Combs and Ted Weschler, who apparently aren’t afraid to shop the bargain bin in the style of their mentor.
As always, Buffett’s timing was as sharp as ever. The December sell-off let him snag steep discounts, proving yet again that his mantra “buy when others are selling” isn’t just a line for the history books. Sure, Sirius XM is limping, and VeriSign isn’t winning any popularity contests, but Buffett’s not here for quick wins.
With $147 billion in cash to play with, Berkshire’s still showing Wall Street how to shop smart, even when the cans are a little dented. Merry Christmas from the Santa of Omaha.