Warren Buffett poses with Martin, the Geico gecko, ahead of the Berkshire Hathaway Annual Shareholder’s Meeting in Omaha, Nebraska on May 3rd, 2024.
David A. Grogan | CNBC
Warren Buffett went on bit of a shopping spree in the stock market before Christmas, picking up shares of Occidental Petroleum among others during a swift December sell-off.
Berkshire Hathaway purchased additional 8.9 million shares in the Houston-based energy producer for $405 million through transactions Tuesday, Wednesday and Thursday, pushing its stake above 28%, according to a regulatory filing late Thursday night.
During the same time frame, the Omaha-based conglomerate also bought about 5 million shares of Sirius XM for around $113 million as well as about 234,000 shares of VeriSign for roughly $45 million. These two stakes are much smaller in size, so these transactions could be made by Buffett’s investing lieutenants Todd Combs and Ted Weschler.
All told, Berkshire bought over $560 million worth of stocks over the last three sessions.
The 92-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, once known for being founded by legendary oilman Armand Hammer, is Berkshire’s sixth-biggest equity holding. Buffett has ruled out a full takeover.
Occidental Petroleum
The sell-off in Sirius XM has been more dramatic. The New York-based satellite radio company is currently in its six-day losing streak, falling 23% this month and 62% this year.
Berkshire started hiking this bet after billionaire John Malone’s Liberty Media completed its deal in early September 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.
Check out the companies making headlines in midday trading. Netflix — The streaming giant soared nearly 12% to an all-time high on the heels of better-than-expected results in the fourth quarter. Netflix reported earnings per share of $4.27 on revenue of $10.25 billion. Analysts polled by LSEG forecast $4.20 per share and $10.11 billion in revenue. The company also announced plans to raise prices for both its advertising supported and premium subscriptions. Johnson & Johnson — Shares fell more than 2% after the pharmaceutical maker’s sales forecast for this year was lower than analyst estimates. J & J edged past fourth-quarter estimates , however. Trump Media and Technology Group — The Truth Social parent pulled back more than 4%, continuing a post-inauguration sell-off from Tuesday. Procter & Gamble — The Ivory soap and Crest toothpaste maker rose 3% after fiscal second-quarter results surpassed Wall Street estimates. Cincinnati-based P & G reported earnings per share of $1.88 on $21.88 billion in revenue. Analysts polled by LSEG were looking for $1.86 per share and revenue of $21.54 billion. 3M — Shares traded marginally higher following an upgrade to overweight from equal weight at Wells Fargo, with analyst Joseph O’Dea citing potentially higher profit margins and a recovery in the industrials sector as positive catalysts. Oracle — Shares jumped more than 10% after President Donald Trump on Tuesday announced a joint venture including OpenAI, Oracle and Softbank to invest as much as $500 billion in U.S. artificial intelligence infrastructure for a project entitled “Stargate.” Shares of AI chipmaker Nvidia gained more than 4%. GE Vernova — The power turbine maker added 2.2% and hit an all-time high on earnings of $1.73 per share in the fourth quarter and after reiterating its 2025 outlook. Revenue of $10.56 billion fell short of the $10.79 billion LSEG consensus estimate. Seagate Technology — The data storage stock jumped about 10% after beating estimates on the top and bottom line in its fiscal second quarter. Seagate earned $2.03 per share on revenue of $2.33 billion. Analysts polled by LSEG were looking for $1.88 per share on revenue of $2.32 billion. Ford —Shares of the F-150 maker dropped more than 3% after Barclays downgraded Ford to equal weight from overweight. The investment bank cited volume headwinds and cost improvement uncertainty. Travelers — Shares in the insurance company were higher by about 4% thanks to strong fourth-quarter results. Travelers reported earnings of $9.15 per share, while analysts surveyed by LSEG were looking for $6.64 per share. Revenue of $12.01 billion also surpassed the forecast of $10.84 billion. Textron — The aviation defense stock slipped 4%. Textron’s fourth-quarter revenue of $3.61 billion missed the forecast $3.81 billion from analysts surveyed by LSEG. — CNBC’s Hakyung Kim and Michelle Fox contributed reporting
Check out the companies making headlines before the bell. Netflix — Shares popped more than 15% after the company announced a top- and bottom-line beat on Tuesday night. The streaming service earned $4.27 per share on $10.25 billion in revenue for the fourth quarter. Analysts surveyed by LSEG had expected earnings of $4.20 per share and revenue of $10.11 billion. Netflix also topped 300 million paid subscribers in the quarter. United Airlines — The airline stock rose 5% after issuing a better-than-expected outlook . United expects to earn 75 cents to $1.25 per share, after adjustments, in the first three months of 2025, which is more than the 54 cents analysts had expected, per LSEG. Trump Media & Technology — The parent company of Truth Social shed 2%, continuing its post-inauguration slide. Shares dropped around 11% on Tuesday. Procter & Gamble — Shares climbed 3% after P & G posted fiscal second-quarter earnings and revenue that topped analysts’ forecasts. The company reported adjusted earnings of $1.88 per share, while analysts had expected $1.86 per share, according to LSEG. Revenue came in at $21.88 billion, beating estimates of $21.54 billion. P & G cited growing demand for household staples. Oracle — Shares surged more than 10% on the back of President Donald Trump’s announcement of project “Stargate” on Tuesday, a joint venture with OpenAI, Oracle and Softbank to invest up to $500 billion in U.S. artificial intelligence infrastructure. Ford — The automaker’s shares slipped nearly 2% after Barclays downgraded shares to equal weight from overweight. The investment bank expects volume headwinds and cost improvement uncertainty will weigh on the stock. Abbott Labs — The health-care stock fell about 2% after fourth-quarter sales of $10.97 billion came in below the $11.03 billion expected by analysts, according to StreetAccount. Sales at its diagnostics division were down slightly year over year. Abbott expects to earn $1.05 to $1.09 per share on an adjusted basis in the first quarter, below the $1.11 per share expected by analysts, according to FactSet. Seagate Technology Holdings — Shares of the data storage company jumped more than 6% the day after it announced strong fiscal second-quarter results. Seagate Technology posted adjusted earnings of $2.03 per share on revenue of $2.33 billion. Analysts surveyed by LSEG had expected per-share earnings of $1.88 on revenue of $2.32 billion. GE Vernova — The energy company moved about 1% higher after reporting fourth-quarter earnings of $1.73 per share, and reiterating its outlook for 2025. Revenue of $10.56 billion, however, fell short of the $10.79 billion expected by analysts polled by LSEG. Travelers — The insurance stock jumped more than 5% after its fourth-quarter results came in well above estimates. Travelers earned $9.15 per share, topping estimates for $6.64 per share, according to LSEG. Revenue of $12.01 billion also beat analysts’ forecasts for $10.84 billion. Textron — Shares shed nearly 4% after the aviation and defense company missed top-line estimates. Textron posted revenue of $3.61 billion in the fourth quarter, while analysts had called for $3.81 billion, per LSEG. Meanwhile, the company posted adjusted earnings of $1.34 per share, which came in a penny above consensus forecasts. Johnson & Johnson — Shares dipped 1.5% after the drugmaker narrowly beat fourth-quarter expectations , driven by strong sales of its cancer treatment. However, the company’s sales forecast for 2025 was slightly lower than analysts were expecting. — CNBC’s Jesse Pound, Michelle Fox and Pia Singh contributed reporting
JPMorgan Chase CEO Jamie Dimon said Wednesday the looming tariffs that President Donald Trump is expected to slap on U.S. trading partners could be viewed positively.
Despite fears that the duties could spark a global trade war and reignite inflation domestically, the head of the largest U.S. bank by assets said they could protect American interests and bring trading partners back to the table for better deals for the country, if used correctly.
“If it’s a little inflationary, but it’s good for national security, so be it. I mean, get over it,” Dimon told CNBC’s Andrew Ross Sorkin during an interview at the World Economic Forum in Davos. “National security trumps a little bit more inflation.”
Since taking office Monday, Trump has been saber-rattling on tariffs, threatening Monday to impose levies on Mexico and Canada, then expanding the scope Tuesday to China and the European Union. The president told reporters that the EU is treating the U.S. “very, very badly” due to its large annual trade surplus. The U.S. last year ran a $214 billion deficit with the EU through November 2024.
Among the considerations are a 10% tariff on China and 25% on Canada and Mexico as the U.S. looks forward to a review on the tri-party agreement Trump negotiated during his first term. The U.S.-Mexico-Canada Trade Agreement is up for review in July 2026.
Dimon did not get into the details of Trump’s plans, but said it depends on how the duties are implemented. Trump has indicated the tariffs could take effect Feb. 1.
“I look at tariffs, they’re an economic tool, That’s it,” Dimon said. “They’re an economic weapon, depending on how you use it, why you use it, stuff like that. Tariffs are inflationary and not inflationary.”
Trump leveled broad-based tariffs during his first term, during which inflation ran below 2.5% each year. Despite the looming tariff threat, the U.S. dollar has drifted lower this week.
“Tariffs can change the dollar, but the most important thing is growth,” Dimon said.