OXY purchase by Buffett

Stocks A to Z
1

Warren’s last few OXY purchases. Today’s price $60.3.

  1. You can sell a put for $55 for Jan 2025 for a 13% return (8% premium + 5% return on cash).

OR

  1. Entry point to OXY at 12% lower price than what WEB paid

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2

OXY sell off continues. It is now ~$58. Down from a high of $75.

Mr. Market is not liking Occidental Petroleum acquisition talk of Permian producer CrownRock.

3

No. All energy stocks are down because Oil is down. No body is talking about it but Oil is down 20%. If Oil is up 20%, every TV anchor would be talking about it :slight_smile:

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4

But oil prices might recover as OPEC decides to cut production.

5

Oil does what it does. But if recession is in your probabilities, I don’t know how Oil ca go up.

6

Yes, but OPEC has a reputation of responding. During the Asian meltdown in the early 90s, OPEC let oil prices fall to aid with recover. But they are also powerful enough to cut production to support oil prices.

Oil prices are influenced by a small group of people. It is not a free market.