- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Warren Buffett's Berkshire Hathaway made a $2 billion misstep dumping OXY stock & rebuying
Posted on 9/20/22 at 4:16 pm
Posted on 9/20/22 at 4:16 pm
quote:
Warren Buffett's Berkshire Hathaway made a $2 billion misstep by selling its Occidental Petroleum stock in 2020, a Markets Insider analysis of Securities and Exchange Commission filings shows.
The famed investor's conglomerate has spent about $10 billion to purchase 188 million Occidental shares this year, giving it a 20.2% stake in the oil-and-gas explorer and producer.
However, it could have saved a fortune by hanging onto a previous holding of Occidental shares, instead of dumping it in 2020 then rebuilding it at triple the price in recent months.
Berkshire paid an estimated $810 million to buy 18.9 million common shares of Occidental in the second half of 2019, based on the energy company's average closing stock price in the period.
Buffett's company received another 28.8 million shares in 2020, after Occidental opted to pay $400 million of preferred-stock dividends to Berkshire in the form of common stock instead of cash. Occidental owed the dividends as part of a $10 billion financing deal it struck with Berkshire in 2019, and wanted to preserve its cash reserves.
Berkshire sold its entire position of nearly 48 million Occidental shares for about $720 million during the second and third quarters of 2020. If the conglomerate had retained those shares, they would have quadrupled in value to $3.1 billion as of Monday's close.
quote:
Of course, Buffett and his team couldn't have known oil prices would surge within two years of their Occidental exit, revitalizing the company's prospects. Still, they lost out on nearly $2 billion in profits by selling their Occidental stake in 2020, and ended up spending an extra $1.7 billion to rebuild it this year.
LINK
Posted on 9/20/22 at 4:25 pm to ragincajun03
I feel like this analysis is retarded if it doesn't look at what the money did over the 2 year period. It isn't like they took the money from the sell and stuck it in a savings account.
Posted on 9/20/22 at 5:30 pm to notsince98
While I agree, Berkshire has a huge cash position, so they essentially did our the money into cash.
Posted on 9/20/22 at 6:18 pm to notsince98
Agree. I just thought it was of interest.
Also...of interest is how well OXY rebounded after stock went from 70s to single digits in a fairly short time, then back up to high 60s. That's a hell of a rollercoaster ride.
Also...of interest is how well OXY rebounded after stock went from 70s to single digits in a fairly short time, then back up to high 60s. That's a hell of a rollercoaster ride.
Popular
Back to top
Follow TigerDroppings for LSU Football News