IB Net Payout Yields Model

Occidental Petroleum: Even Buffett Bought Too Soon (Rating Downgrade)

 Update - May 8, 2023

Berkshire not buying control of Oxy confirms why the stock is capped here. 

-Berkshire Hathaway (NYSE:BRK.B) (NYSE:BRK.A) won't buy control of Occidental Petroleum (NYSE:OXY), Chairman and CEO Warren Buffett said during Berkshire's annual meeting in Omaha on Saturday.
-"We wouldn't know what to do with it," he said, adding that he's confident in OXY's management.
-"We may or may not own more" of the stock in the future, he said.
-In March, Berkshire Hathaway (BRK.B) added almost 3.7M more shares to its holdings, bringing its stake in the petroleum producer to ~23.6%.

Finviz Chart

Original article posted on March 19

  • OXY has fallen below $60 again leading to Berkshire Hathaway purchasing more shares.
  • Energy prices have fallen to levels consistent with Q3'21 levels when the company earned far close to a $3 to $4 EPS stream.
  • The stock isn't priced for lower earnings leaving OXY trading at ~20x '23 EPS targets.

After multiple warnings to investors that one shouldn't overpay for Occidental Petroleum Corporation (NYSE:OXY), even Warren Buffett and Berkshire Hathaway (BRK.BBRK.A) overpaid for the stock. The independent energy company now faces

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 


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