10 Best Stocks to Buy Now According to Warren Buffett

7. Occidental Petroleum Corp (NYSE:OXY)

Berkshire’s Stake Value: $10.89 Billion

Berkshire owns about 29% of OXY and bought its chemicals business for $9.7 billion. This provides a strong vote of confidence for the company and strengthens the long-term bull case for the stock. But beyond the Berkshire angle, why should one buy Occidental Petroleum Corp (NYSE:OXY) stock?

Occidental Petroleum Corp (NYSE:OXY) is quickly transitioning away from a traditional oil producer to a carbon-removal giant. Its Direct Air Capture (DAC) facility, STRATOS, is set to start operations this year. The company already has high-margin carbon removal credit deals with major firms like Microsoft and BlackRock. Occidental Petroleum Corp (NYSE:OXY) can produce net-zero oil with higher profit margins and lower decline rates than its competitors. This provides it with a unique hedge against the global energy transition.

Mott Capital Management stated the following regarding Occidental Petroleum Corporation (NYSE:OXY) in its fourth quarter 2025 investor letter:

“I also made a rotational decision to purchase Occidental Petroleum Corporation (NYSE:OXY) at the start of 2026. The energy sector has underperformed in recent years, and I think oil prices are currently depressed. In fact, both Occidental and the energy sector haven’t performed this poorly versus the S&P 500 since the dot-com bubble. Additionally, oil appears to be the only commodity that is not performing well. Occidental seemed like a good way to play a rise in oil prices, given its tight relationship with the commodity. Additionally, it has a strong shareholder base, with Berkshire Hathaway owning more than 26% of the stock. On top of that, the five largest shareholders own a combined 51.6% of the shares, which means that most of the shares are “locked up,” and if buyers step into the name, there will be fewer shares available to buy, potentially adding to an advance.”