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In this video, we explore why Warren Buffett and Berkshire Hathaway have been steadily increasing their stake in Occidental Petroleum (OXY). Despite the market offering OXY shares below Buffett's purchase price, Berkshire now holds 40% of the company. What makes Occidental so appealing?
We break down the reasons behind this strategic move, including insights from Charlie Munger and Buffett himself. Learn why the Permian Basin is a key factor, how Occidental's management strategies align with Buffett’s principles, and why this investment can be seen as a bond-like purchase with a 10% yield.
Discover how Occidental’s focus on paying down debt, returning capital to shareholders, and strategic drilling in high-probability fields enhances its cash flow and long-term value. We'll also discuss the recent acquisition of Crown Rock and its implications for the company’s future.
Join me for a comprehensive analysis of Berkshire's investment in Occidental Petroleum and understand why this could be a long-term play on the price of oil and the value of the underlying oil fields.
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