Besides paying a 8% preferred dividend WB gets for his investment (PS..no one else gets this). Oxy's one year return on investment is -22%... Why not invest in Nvidia for example...Up 118% this year. I did and it more than offsets my Oxy position. I'm sticking around because I vaguely remember a day when this t^*d traded north of $70. Given Oxy is currently trading at $47...A buyout with a 25% premium still doesn't pay... It's just a matter of time y'all.
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He saw an easy mark in Vicki and cashed in
Buffet seems like a nice man and would never intentionally take advantage of any company. But if a desperate company and their execs come to town begging for it then what is he to do. How did this great company end up like this.
Warren Buffett never invests for the short term. Always for the long term, regardless of how macroeconomics look at any given time. And he looks at a company's fundamentals, not short-term price movements. He looks at a company's intrinsic value and buys only when the price is fair or undervalue. I haven't analyzed Oxy, but so many people don't understand Buffett's philosophy, even to this day.
Lmao friggin clown just doomscrolling economic collapse content on reddit or tiktok or whatever
So Mr Doomsday and son have both now checked in.
Just wait until the President Elect gets a hold of the oil industry next year and oil prices crater. This stock will be a great buy and an attractive takeover target.
Could be as easy as an 8% bird in the hand is better than an iffy ROI on just about anything right now. If the investor class believed that a bubble was about to burst, that would be baked in already. The rest of what the poster below predicts is the typical doomsday fear that is always being tossed around. I’m not saying you’re wrong, but I don’t believe you are right either. You know what they say about a stopped clock.
Forgot to mention, the way CRE (Commercial real estate) loans work, is - only interest is due every month (or year), and during the last year both interest and full principle is due. That's why CRE loans are a big deal in 2025.
For example: if someone took out a CRE loan for 10 years for $100,000 then for years 1 to 9, they only have to pay the interest on $100,000. But during the 10th year, they have to pay the interest + $100,000.
Do some google search. It's explained well on some websites.
I understand you point about investing in high tech to get better returns then oxy. But why is WB satisfied with the 8% dividends and why doesn't he invest more in high tech to get much better results? Currently, he has over $325 Billion in cash (short-term treasury bills) paying around 4.3%. I'm thinking something big is about to happen, (like a market crash - inflation will go up, unemployment will go up, not many corporations are hiring, home prices have gone up considerably, mortgage rates are still above 5%, auto loan delinquencies and credit card delinquencies are increasing, major portion of Commercial Real Estate loans are due in 2025, geopolitical issues, wars, climate change - hurricanes, floods, etc, and the market continues to go up. But look how fast it's gone up since covid. A bubble has formed and sometime soon, it may just pop. Also, the Fed is uncertain about the coming year, that's why they pulled back to two rate cuts instead of four. And if high inflation occurs, perhaps no rate cuts in 2025. And if recession occurs, then the market will decline for sure. Also, the incoming white house administration policies are unknown. Or can change within a moments time, like it did with the budget bill. Lots of uncertainty coming up in 2025, so moving into cash has no risk and 8% dividends isn't all that bad for WB or 4% for the rest of us in short-term treasuries. Also, WB and his company are well connected in the world, so they know whats about to happen to the market bubble. Cause when the market falls, it really falls fast.