How Oxy became his 28% movement of power News ad

It’s no secret that Warren Buffet has a tendency to OCCIENTAL PETROLEUM CO. NYSE: Oxy reserve.

But Buffett was not always a fan of reserves of the oil and energy sector. In fact, his loud raid on oil oil reserves with Conocophillips NYSE: Cop He was personally proclaimed as a “serious mistake” by the oracle himself.

In the course, which emphasizes how much his views on the sector have changed, Buffet Berkshire Hathaway Inc. NYSE: BRK.A bought Oxy Stock, when it decreased by 30% from maximums in February 2025. Buffett aggressively increased its share by 763 017 shares on February 7, 2025, delivering its common assets to 265 million sharesor 28.2% Company. At that time, these investments were 4.63% from general assets, which makes it Sixth of the size of the holding In the portfolio of Berkshira.

Conocophillips: Buffet’s main error

Berkshire Hathaway began accumulating Conocophillips in 2007, increasing his share almost to 85 million shares By 2008. The Buffete belonged to about $ 7 billion of Conocophillips shares, since oil prices protruded, and in the Western Texas intermediate (WTI) trade oil is more than $ 145 per barrel.

Recall that 2008 was when a real estate bubble began to break, withdrawing financial markets and oil prices. Buffete time was regrettable, as the breakdown blinded it when oil prices collapsed with the global economy. Oil prices reached a peak just above $ 145 per barrel in July 2008, and then Collected almost 70% to $ 44.60 for a barrel By the end of the year. Raw brand fell $ 35.82and concoophillips shares collapsed from $ 113.17 to $ 51.80– 54% decreases.

In his letter from the 2008 shareholder, Buffete took full responsibility for a “serious mistake”. Referring to the inability to anticipate a collapse of energy prices. Although he believed that oil prices would ultimately recover, an incorrect entrance point and the assessment led him to a complete exit to Conocophillips by 2013 with expected losses 1.5 billion dollarsField

Exxon Mobil: Diversified Oil Stava

Warren Buffett joined the oil business in 2013, acquiring 40 million shares (valued in 3.7 billion dollars) V Exxonmobil Co. NYSE: XomField

Exxon was a more diversified mass oil player than Conocophillips, a vertically integrated hippo with reconnaissance and upward production, conveyor pipelines, Xfand downstream and distribution.

Nevertheless, Buffett unloaded its position next year, estimated at the busting level from the fact that oil prices are falling again. He was also not a great fan of Exxon CEO and thought that the company might be too large to be flexible enough during system corrections.

Western oil: dividends 8% and privileged shares

Buffett again returned to oil fields in 2019 with oil oil, but with another investment approach.

Berkshire did 10 billion dollars Investments through preferred stock To help finance the acquisition of Andadarko Petroleum.

As part of the transaction, Buffete received 100,000 preferred shares that pay annual dividends in the amount of 8%, as well as warrants that allow you to purchase up to 83.9 million shares of ordinary OCCIENTAL shares at a price of $ 59.62 per share.

Buffett also praised the general director of OcCidental Vicki Holub, thanks to her Fiscal discipline and long -term visionThe field of her leadership played a key role in the motivation of Berkshir to create her huge 28.2% of the shares.

The Hall calls himself an ecologist, who is simply the general director of the oil and gas company. It directs an accent to a double strategy: energy production and environmental liability.

Within the framework of this shift, the company becomes more and more diverse thanks to investments in Carbon capture Through his subsidiary 1pointFive. Stratosin a billion-paying direction of air capture (DAC) in Perm basinHe is going to live in 2025.

1pointfive sells loans for carbon dioxide (CDR) from the moment before the structure. Stratos has an annual power of 500,000 tons, which he will use to compensate for his own carbon emissions and sell at a rate of 500 to 1100 US dollars per metric ton for carbon loans for companies such as companies such as such as companies such as Microsoft Co. NASDAQ: MSFT And Airbus OTCMKTS: EADSYField

Why Buffett understood this correctly

Buffetus investments in accentuers sharply contrast with its mistake Conocophillips.

With Conocophillips, Buffett violated its own rules moving Fomo-chasing, to the height of the bubble. With OCCIENTAL, Buffett entered with a strong basis for dividends 8% and flexibility to acquire more shares with a discount with orders.

And diversification of OCCIDENTAL to capture carbon may mean that Buffett not only makes oil rates, but also for the future of Energy.

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