StockNews.AI
BRK-A
CNBC
12 hrs

Warren Buffett Watch: His last big deal as Berkshire CEO before Abel takes over?

1. Berkshire holds a 27% stake in Occidental, valued at $11.9 billion. 2. Occidental pays an 8% dividend on $8 billion of preferred shares held by Berkshire. 3. CEO Vicki Hollub plans to improve Occidental's balance sheet post-acquisition. 4. Occidental's shares dropped 5.5% after the announcement, sparking mixed market reactions. 5. Berkshire's continued dividends from Occidental are estimated to exceed $600 million annually.

7m saved
Insight
Article

FAQ

Why Bullish?

Berkshire's significant investment in Occidental and ongoing dividends enhance its cash flow stability. The prospects for value creation in the energy sector may raise Berkshire's overall portfolio value.

How important is it?

The strategic relationship and financial ties between Berkshire and Occidental influence BRK-A's financial outlook. Significant dividends and asset appreciation can substantially benefit Berkshire's performance.

Why Long Term?

The ongoing dividend payments and potential appreciation in Occidental's stock support long-term value creation for Berkshire. Historical investments by Buffett often yield returns over extended periods.

Related Companies

Related News