Why Warren Buffett Keeps Buying Occidental Petroleum — 'Nothing But Sense'

Warren Buffett hasn't said much about Occidental Petroleum (OXY) in recent months.

But Berkshire Hathaway's (BRK-A, BRK-B) actions have indicated plenty.

The conglomerate has continued its steady buying of the Houston-based oil and gas explorer with its stake currently standing at 23.6% of the company.

And when the "Oracle of Omaha" takes the stage to address shareholders at Berkshire's annual meeting on Saturday, investors will be focused on not only what he says about energy, but also on whether Occidental will become the company's latest outright purchase.

Asked about his investment at last year's meeting, Buffett said, "What [Occidental CEO] Vicki Hollub was saying made nothing but sense... And I decided that it was a good place to put Berkshire's money."

Buying an oil stock isn't an outlier for Buffett and his team. According to Berkshire's most recent 13F filing, Chevron (CVX) was Berkshire's third largest holding at the end of last year, with the company's position valued at more than $29 billion at today's prices.

Occidental has quickly risen into the top 10 on that list, too, with Berkshire's stake valued at $12.7 billion.