Warren Buffett made waves in 2024 by selling more than $134 billion worth of stocks through Berkshire Hathaway. While the company’s stock still outperformed the S&P 500, many wonder if it could have done even better had Buffett made different moves. His cash reserves soared to an all-time high, raising questions about what he sees coming next.

At the same time, the Oracle of Omaha did not stop buying entirely. He selectively acquired shares in a few smaller companies, spending about $200 million between December 2024 and January 2025. These purchases reveal a lot about his investment philosophy and where he sees value in the market right now.

Buffett’s Biggest Purchases in Late 2024 and Early 2025

Despite his massive stock sales, Warren Buffett didn’t sit on the sidelines entirely. His firm, Berkshire Hathaway, disclosed new investments in three companies:

- Occidental Petroleum (NYSE: OXY) – 8.9 million shares for $409 million.
- Sirius XM (NASDAQ: SIRI) – 5 million shares for $107 million.
- Verisign (NASDAQ: VRSN) – 474,000 shares for $94 million.

This tells us something important: Buffett is not betting on just any stock. He is choosing carefully, and each of these purchases aligns with a distinct investment theme.

Why Buffett Still Likes Occidental Petroleum?

Buffett has been adding to his stake in Occidental Petroleum for a while. Berkshire already owns preferred shares and warrants to buy more at $59.62 per share.

GTN / Occidental’s stock has recently traded below that level. This makes it an attractive deal for Buffett.

The move reinforces his belief in the long-term value of oil and gas companies. Even as the world shifts toward renewable energy, Buffett continues to see opportunities in traditional energy. That should make investors take a closer look at the sector.

What is Special About Sirius XM and Verisign?

Sirius XM and Verisign might not seem like obvious choices for Buffett, but they both have strong competitive advantages. Sirius XM dominates satellite radio and has a steady subscription-based revenue model. Meanwhile, Verisign controls the .com and .net domain registrations, making it a digital infrastructure powerhouse.

These businesses are not flashy. But they have something Buffett loves! consistent cash flow and strong market positions. The Oracle of Omaha has always been a fan of companies that can generate reliable earnings year after year, and both of these fit the bill.

Smaller Companies With Bigger Opportunities Attract Buffett

Buffett’s latest picks have something in common. They are much smaller than the typical Berkshire Hathaway investment. Sirius XM has a market cap of just $7.5 billion, while Verisign sits at around $20 billion. Even Occidental is relatively small at $47 billion.

Yahoo News / Buffett might be struggling to find good deals in large-cap stocks. Instead, he is turning to smaller firms where he sees stronger growth potential and better valuations.

This pattern extends beyond these three names. Earlier in 2024, Buffett also invested in Domino’s Pizza, Pool Corp, and Heico. Each of these has a market cap under $30 billion, a far cry from the massive corporations Buffett usually targets.

The Challenge of Deploying Billions

Warren Buffett’s biggest problem is not a lack of investment ideas. It is finding places to put Berkshire Hathaway’s massive cash pile to work. Selling Apple stock is easy when the company is worth over $3 trillion. But reinvesting that money in smaller stocks without moving their prices too much is a real challenge.

This could explain why Buffett’s purchases in 2024 were relatively small. He might have wanted to buy more but didn’t want to drive up prices or attract too much attention.

It is a balancing act, and it is something Berkshire Hathaway will continue to wrestle with in the future.