Oracle (ORCL) Stock: Gaining On Buffett Stake


Oracle Corporation (NYSE: ORCL) is headed up early in the market this morning after Warren Buffett disclosed his interest in the stock. In a 13F filed by Berkshire Hathaway, Buffett’s fund disclosed a stake in the company, exciting investors and sending the stock for the top. Today, we’ll talk about the billionaire’s interest in ORCL, what we’re seeing from the stock, and what we’ll be watching for ahead.

Buffett Discloses Interest In ORCL

As mentioned above, Oracle Corporation is having a strong start to the trading session this morning after an SEC filing disclosed Warren Buffett’s interest in the stock. In a 13F, filed by Berkshire Hathaway, it was disclosed that the fund purchased 41 million shares of the software company with a value of $2.1 billion.

At the end of the day, smart money follows big money, and money doesn’t get much bigger than Berkshire Hathaway. With around $100 billion under management, the fund is one of the largest in the world.

Berkshire Hathaway’s stance as one of the largest funds in the world helps ORCL, but the fact that it is led by Warren Buffet does even more. The truth of the matter is that Warren Buffett is the investor that just about all investors look up to. He isn’t one of the greats, he is THE GREAT! So, when he makes a move, Wall Street tends to move with him, and that’s exactly what’s happening today.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to work in the market is that the news moves the market. In the case of Oracle, the news proved to be overwhelmingly positive. The fact that Warren Buffett’s Berkshire Hathaway made such a large investment in the company is a major bode of confidence in the stock and investors are taking note. So, it’s not surprising to see that the stock is making its way for the top in the market this morning. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:16), ORCL is trading at $50.07 per share after a gain of $1.23 per share or 2.52% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on ORCL. In particular, we’re interested in following the market action after today’s 13F disclosure. We’re also interested in following the company’s revenue growth. The only two in the software development sector that are larger by revenue are Microsoft and Alphabet. So, this could be some fun growth to watch.


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