Warren Buffett Just Bought This Oil Stock in Market Sell-Off; Should You?

Warren Buffett and his investing team are taking advantage of the stock market sell-off, but you might be surprised to hear about their latest purchase. It's not a tech or a financial or a consumer stock that Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) has large stakes in. It's an oil stock -- one that Buffett can't seem to keep his hands off of.

A regulatory filing dated June 22 reveals Berkshire Hathaway bought 9.6 million shares in Occidental Petroleum (NYSE: OXY) between June 17 and June 22, valued at nearly $529 million. After an unstoppable rally through the year, it's only now -- in the past couple of weeks or so -- that Occidental stock has taken a breather. At Thursday morning's prices, it has dropped more than 20% in value since hitting 52-week highs in late May.

Buffett clearly saw an opportunity in the oil stock's dip, and Berkshire now owns nearly 152.7 million shares in Occidental. Notably, Berkshire also owns shares of Chevron, but it hasn't reported any transaction in Chevron stock so far this month. So what is it about Occidental that has Buffett so excited, and should you also follow the legendary investor and scoop up shares in the oil stock today?

Source Fool.com