Berkshire’s Recent Purchase of Additional Shares of Occidental Petroleum

I am quoted in this Yahoo Finance article:

As David Kass, clinical professor of finance at University of Maryland, Robert H. Smith School of Business, noted that Buffett has expressed his admiration for OXY CEO Vicki Hollub, who has stressed her desire to have OXY earn rates of return that exceed its cost of capital, reduce the amount of debt on its balance sheet, buy back shares of its common stock and pay a cash dividend.

Indeed, during the company’s May annual shareholder meeting, Buffett said Hollub was “an extraordinary manager of Occidental,” according to a transcript.

“Buffett’s purchase of OXY shares earlier this week signals his approval of OXY’s purchase of CrownRock,” said Kass. “Over 80% of OXY’s petroleum reserves are located in the United States -thus minimizing geopolitical risk.”

Kass added that Buffett’s additional purchases of OXY stock earlier this week signals his confidence not only in the management of OXY, but the overall economy.

“Buffett is a long-term investor with large investments in both OXY and Chevron whose value is primarily determined by the price of oil,” he said. “This indicates that he is expecting oil currently 

trading at $70 per barrel to return to a 40-year average of $80 in the years ahead.”