"China Warren Buffett" buys Occidental Petroleum! Will last year's 119% rally continue?
The top 10 holdings of Warren Buffett's Berkshire Hathaway in the fourth quarter of 2022 were $Apple(AAPL.US$, $Bank of America(BAC.US$, $Chevron(CVX.US$, $Coca-Cola(KO.US$, $American Express(AXP.US$, $The Kraft Heinz(KHC.US$, $Occidental Petroleum(OXY.US$, $Moody's(MCO.US$， $Activision Blizzard(ATVI.US$ and $HP Inc(HPQ.US$。
Among them, Occidental Petroleum rose 119% last year, the best-performing stock in the position, Chevron is in second place with a 58.46% increase. ![]()
On February 25, Duan Yongping, a well-known Chinese investor known as "China Warren Buffett", posted in Snowball that he "bought some $Occidental Petroleum(OXY.US$ and occasionally copied homework." He also admitted that he was following Warren Buffett's investment. ![]()
Duan Yongping is a former founder of the Chinese company BBK and is now a well-known investor. In 2006, he won the "Warren Buffett Lunch" for a whopping $620,100, which shocked the whole of China.
At the end of 2001, NetEase's share price plummeted from $15 to less than $1 as the U.S. Internet bubble burst and it faced bankruptcy. When Duan sold nine years later, the market value of Duan's shares had doubled more than 100 times, netting him a profit of more than $100 million. He became famous as soon as he invested.
Is it a good time to buy Occidental Petroleum? ![]()
The reason for Duan's investment in Occidental Petroleum is also very simple: trust in Warren Buffett's investment logic. In addition, the price at which Buffett received warrants to buy more common stock was $59.62, and today Occidental shares are already below that price level, which has some investment value from a gaming perspective. ![]()
What is the logic behind Warren Buffett's choice to invest in Occidental?
From the perspective of international oil price fluctuations, as long as no extreme market conditions occur, then the global oil price is expected to remain in the region of $60 - $100 oscillating operation.
For Occidental Petroleum, with its relatively strong cost control ability, can control production costs at a very low level. As long as the international oil price does not show the kind of extreme trend in early 2020, Occidental is likely to continue to make money.
At the same time, the uncertainty of the geopolitical situation has increased the variables of oil price fluctuations. From the early $130 down to nearly $70, international oil prices have gradually bottomed out signs, UBS, Citibank and other institutions also believe that international oil prices in the short term or will be difficult to appear more substantial fall.
In fact, Warren Buffett's investments have been able to outperform the S&P 500 for a long time by holding real industry giants, such as financials and energy, for a long time during downturns.
In 2022, under the influence of interest rate hikes U.S. technology stocks fell in various positions, the S&P 500 index fell 18.1%, while Berkshire benefited from bets on oil stocks and other stocks, the stock price rose 4.0% for the year, and the increase in market value per share significantly outperformed the S&P 500 index by 22.1 percentage points.
$Oil & Gas Integrated(BK2224.US$ $Occidental Petroleum(OXY.US$ $Cematrix Corp(CVX.CA$ $Exxon Mobil(XOM.US$ $ConocoPhillips(COP.US$ $Pioneer Natural Resources(PXD.US$ $Devon Energy(DVN.US$ $EOG Resources(EOG.US$ $Marathon Oil(MRO.US$ $Petroleo Brasileiro SA Petrobras(PBR.US$ $Shell PLC(SHEL.US$ $Suncor Energy(SU.US$ $Cenovus Energy(CVE.US$ $TotalEnergies(TTE.US$ $Hess Corp(HES.US$ $Apache(APA.US$ $Bank of America(BAC.US$ $Apple(AAPL.US$ $Coca-Cola(KO.US$ $Chevron(CVX.US$ $The Kraft Heinz(KHC.US$ $Moody's(MCO.US$ $Activision Blizzard(ATVI.US$ $HP Inc(HPQ.US$ $ProShares UltraPro QQQ ETF(TQQQ.US$ $ProShares UltraPro Short QQQ ETF(SQQQ.US$
Source: Gelonghui, <February 26, 2023>
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Fat FIRE : XOM is what I feel is the safest
Jones Ng :
brave Wombat_9978 : prefer cvx
101895607 Fat FIRE: Yes, it's relatively stable