Warren Buffett’s faith in Occidental Petroleum inspired a host of retail investors to follow suit. Since Berkshire Hathaway initially disclosed a $5 billion stake in the oil giant, the stock has seen its average daily net outflow from retail investors increase by 16.5 times. times – from $500,000/day to $8.25 million/day, according to data from VandaTrack. “The Warren Buffett Effect – Oil and Gas Occidental is now a popular retail stock,” said analysts from VandaTrack. The “Oracle of Omaha” has steadily added to his stake in Occidental since March, giving Berkshire a 19.4% stake in Occidental worth about $10.9 billion. Occidental has been the best-performing stock in the S&P 500 this year, up about 113% so far on the back of strong oil prices. Berkshire also owns $10 billion of Occidental preferred stock and has warrants to buy another 83.9 million shares of common stock for $5 billion, or $59.62 per share. Warrants acquired as part of the company’s 2019 acquisition help finance Occidental’s purchase of Anadarko. The retail hobby sparked by Buffett may seem ironic to some as the legendary investor has long criticized the speculative trades of small investors, comparing the stock market to a casino. . In fact, during Berkshire’s annual meeting in late April, Buffett said volatility caused by increased trading activity from retail investors made it possible for him to buy a 14% stake in Occidental in a two-week period. “It’s basically a gambling parlor,” Buffett told shareholders at the meeting. “And the people who make the money are the people who work with the gamblers.” Buffett also revealed that he has read through Occidental’s annual report and is confident in the company’s growth and leadership. “What Vicki Hollub is saying makes no sense but makes sense. And I decided it was a good place to put Berkshire’s money,” Buffett said. “Vicki is talking about what the company has been through and where it is now and what they plan to do with the money.”