Thus, the American oil company has entered the ‘top ten’ of the most important companies for Berkshire, which already controls 12% of the capital of Occidental Petroleum. In addition, Buffett can reach up to 20% of the capital, due to a 2019 deal that helped finance Occidental’s purchase of Anadarko.
Occidental’s shares have risen almost 90% in the last 12 months due to rising oil prices, something Berkshire Hathaway is taking advantage of to bolster its stake in the company. In the last week of February, the oil company soared 45% amid a rise in prices to record values.
Buffet’s advice in times of war
“If the shares are cheaper, I will be more likely to buy them,” the investor said in an interview with CNBC when Crimea joined Russia, as compiled by Business Insider regarding what he would do with the drop in the value of the actions.
“You are going to invest your money in something over time. The only thing you can be sure of is that if we get into a very important war, the value of money will go down,” he said.
Along the same lines, he considered that this process occurred during “all the wars”, so The “last thing” you should do is keep the money during a war.
On the other hand, he specifically referred to the value of US companies in times of conflict. In this way, he considered that “American companies are going to be worth more money. The dollars are going to be worth less, so that money is not going to buy as much.”
Looking ahead and over the coming decades, Buffet highlighted the latter concept and emphasized that it is a better idea to “own productive assets” than “pieces of paper or bitcoins.”
On the first investment of the CEO of Berkshire Hathaway at the age of eleven, he placed US $ 115 in three shares of Cities Service. “You didn’t have to pick a winning stock. You didn’t have to pick a winning moment or anything like that. Basically, you just had to make an investment decision in your life.”
This is how he trusted in the economic progress of the North American country: “I was convinced of this in World War II, during the missile crisis in Cuba, on September 11 and in the financial crisis.”
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
