Warren has long been a buyer of companies that will pay long term dividends to him self and to Berkshire investors.
Warren Buffett will likely acquire all of Occidental Petroleum once its credit profile improves. Buffet has had his eye on OXY buying $10 Billion in preferred stock back in 2019.
Why this is Important to You
Warren aiming to buy oil companies means that he expects oil to continue to go up. It also means he believes he can make meaningful changes within the company to continue it's growth. Needless to say I'm keeping my eyes on this.
Occidental Petroleum Corporation is an American company that is involved in the exploration of hydrocarbons and petrochemical manufacturing. The company is headquartered in Houston and is incorporated in the state of Delaware.
Oxy's growth was accelerated when Hammer won a large oil concession in Libya in 1967. The deal propelled the growth of Oxy and led to it becoming a major international oil company. Oxy was instrumental in preventing the nationalization of Libya's oil production in the 1970s, but later ceased operations in the country as relations between the U.S. and Libya deteriorated. Occidental has continued to pay quarterly dividends since 1975 and has increased them by 12.5 percent since then.
In 1997, Occidental bought the Naval Petroleum Reserve, a natural gas and oil field near Bakersfield, California. The government had owned the reserve since 1900, but decided it no longer needed the field and auctioned it. In a deal that has become the largest privatization in U.S. history, Occidental bought 78 percent of the field, while Chevron owned the rest. The company continues to expand its operations into Canada and Chile.
Today, Warren Buffet has been buying up shares of this company and is preparing to possibly purchase the whole company. OXY is sitting on a large cash pile and is looking quite attractive to potential buyers. Buffett also seems to think that the company has potential for good growth. Based on his prior company buyouts these attributes have been requirements.