It's no secret that Warren Buffett isn't finding many stocks he likes enough to buy these days. The legendary investor has been a net seller of stocks for eight consecutive quarters, a streak dating back to late 2022.
That doesn't mean Buffett hasn't been buying any stocks. He has chosen a select few that meet his stringent criteria. Which stock did Buffett buy in 2024 that he's most likely to buy again this quarter?
Buffett's buys last year
The most notable addition to Berkshire Hathaway's portfolio in the first quarter of 2024 was Chubb (CB 1.38%). The large property and casualty insurer was revealed as the "mystery stock" Berkshire began buying in 2023.
NYSE: CB
Key Data Points
Buffett also added to three existing Berkshire positions in Q1 last year. He continued scooping up shares of oil and gas producer Occidental Petroleum (OXY +1.82%). The "Oracle of Omaha" also bought more shares of Liberty Media SiriusXM Class A and Liberty Media SiriusXM Class C, both tracking stocks for Liberty Media's interest in Sirius XM Holdings (SIRI 1.66%).
In the second quarter of 2024, Buffett again bought more shares of Chubb, Occidental, the two Liberty Media Sirius XM tracking stocks, and Sirius XM. He also initiated new positions in aerospace and electronics company Heico and cosmetics retailer Ulta Beauty.
Buffett and his investment managers bought more shares of Heico in the third quarter of 2024 and increased Berkshire's stake in Sirius XM. They also initiated new positions in Domino's Pizza and swimming pool supplies distributor Pool Corporation.
NASDAQ: SIRI
Key Data Points
We don't know yet all of the stocks Buffett bought in the fourth quarter of 2024. However, regulatory filings revealed purchases of additional shares of Occidental, Sirius XM, and Verisign.
Most likely repeat purchase
Two of Buffett's buys last year can be safely ruled out as repeat purchases. Liberty SiriusXM Holdings merged with Sirius XM in September 2024. Berkshire also sold nearly all (96.5%) of its stake in Ulta Beauty during Q3 of 2024. I doubt we'll see Ulta among his stock purchases this quarter.
However, I think all of the other 2024 stocks bought by Berkshire are good candidates for him to buy again in Q1 of 2025. Chubb is a great fit for Berkshire's portfolio. Buffett appears to think highly of Sirius XM. It also wouldn't be surprising if he or his two lieutenants -- Todd Combs and Ted Wexler -- added to Berkshire's stakes in Domino's Pizza, Heico, Pool, or Verisign.
But if I had to pick the stock Buffett bought in 2024 that's most likely to be a repeat purchase this quarter it would be Occidental Petroleum. My reasoning is based on three factors.
NYSE: OXY
Key Data Points
First, Buffett seems like Occidental more than any of the other stocks on the list. In his letter to Berkshire Hathaway shareholders last year, he included Oxy as one of a handful of stocks he expected to "maintain indefinitely."
Second, Berkshire secured regulatory approval in 2022 to acquire up to 50% of Occidental. The conglomerate's stake in Oxy currently stands at 28.2%. Just because Berkshire can buy more of the oil and gas company doesn't mean that it will do so, but I suspect we'll see more purchases.
Third, Occidental stock is relatively cheap. Shares trade at 15.4 times forward earnings and are down around 27% below the 52-week high.
Is Occidental stock a good pick for other investors?
I think Buffett's onto something with his steady buildup of a huge position in Occidental Petroleum. The demand for oil and gas won't disappear even with the increased use of renewable energy sources. Occidental is also a leader in carbon capture and storage technology, which could open up a major new growth opportunity for the company in the future.
