ββ#ForexChief #Buffett #OccidentalPetroleum #nyse #Berkshire #MarketsInsider #oxy #VickiHollub #forexnews #stocks #worldnews β
π Buffett forms a new trendβ
π΅ Energy stocks are popular again. Berkshire Hathaway spent about $10 billion to buy a stake in the oil and gas Occidental Petroleum Corporation, and in less than 6 months, Buffett and his team have already earned more than $4 billion.
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According to Markets Insider, Between Feb. 28 and Aug. 8, the fund bought 188 million (just over 20%) of Occidental (NYSE:
OXY) shares at prices ranging from $41 to $60. The price of these securities has already increased by about 83% and is now at $75, the highest since November 2018.
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In the first half of 2022, oil and natural gas stocks posted strong gains as a combination of macro factors led investors into this cyclical and cheap market niche. Along with other oil and gas companies, Occidental has benefited this year from higher energy prices as a conflict between Russia and the West over Ukraine disrupted global supplies.
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Buffett became interested in Occidental after CEO Vicki Hollub laid out her plan to refocus the company: reduce debt, increase cash flow and increase shareholder return.
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Berkshire recently received regulatory approval to increase its stake in the fossil fuel company to 50%. The conglomerate already has warrants to buy 83.9 million shares of common stock at a fixed price, which it received in exchange for funding the 2019 takeover of Anadarko Petroleum.
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Despite his advanced age, the Sly Fox is not afraid to take risks, but his risk is always based on a qualitative fundamental assessment of the situation. So anyone with an interest in the energy market needs to keep an eye on energy stocks versus oil to catch the best entry. Perhaps this is your chance?
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Profits to yβall!