Out Fox The $treet

 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%. 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 war...

  TSMC dipped on news Berkshire Hathaway dumped shares of the chip company. The investment firm run by Warren Buffett has a recent history of selling at the lows prior to large rallies. The stock is a buy based on a cheap valuation at 12x '24 EPS targets, especially after the Buffett-induced dip. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   In a strange move,  Berkshire Hathaway  ( BRK.A ,  BRK.B )  slashed shares  of  Taiwan Semiconductor Manufacturing Company  ( NYSE: TSM ) months after initiating a new position. The massive insurance and investment firm ran by Warren Buffett  has made several odd sells in the last few years by unloading stocks closer to the lows. My investment thesis is Bullish on the advanced chip manufacturing company trading at a cheap valuation due to irrational fears. Read the full article on Seeking Alpha.  Disclosure: No pos...

Back in April, ConocoPhillips (COP) split off Phillips 66 (PSX) to create a company focused on upstream exploration and production. The ultimate goal was to release the company from the regulatory and margin pressures common in the refining business of the new Phillips 66. A few months after the split, Buffett's investment arm of Berkshire Hathaway Inc. (BRK.B) famously increased investments in Phillips 66, to the surprise of most. The refining business has long been suffering due to low cost foreign imports and domestic regulations. Buffett and others though were interested in the potential of the chemicals and pipeline division. As we highlighted back then, the majority of the profits in that company will be derived from the refining arm for the foreseeable future. So was Buffett right to invest in Phillips 66? Read the full article at Seeking Alpha. Disclosure: Long COP. Please review the disclaimer page for more details. 

Before anybody gets carried away, remember that when Warren Buffett buys something it's because the deal is too good to pass up. Or the seller might just be that desperate. In this case, it doesn't appear that First Solar ( FSLR ) was overly desperate to unload the project, but rather Buffett's MidAmerican Energy saw an opportunity to buy at an attractive price with locked in high power rates. Contrary to initial  Reuters reports  about the deal, this isn't likely a Buffett endorsement of the solar industry and if anything could be a signal that he and the executives at MidAmerica expect the solar model going forward to be not as appealing and possibly negative enough to limit supply. Would he really buy into a market where rates are going to crater due to oversupply? Well, maybe with a 25 year iron clad contract; though I'd be worried about the contract being voided if pricing deteriorated too far. Read the full article at Seeking Alpha.  Disclosure:...