Post by
Obscure1 on Mar 19, 2022 8:15pm
It's not too late to buy oil for the Oracle
As hedge funds liquidate oil producers at near record rates, lo and behold, guess who's buying?
Berkshire Hathaway!
Berkshire Hathaway disclosed that it raised its stake in Occidental Petroleum to 14.6% with purchases of 18.1 million more shares this week. If BRK exercises its $60 warrants in the future, it will own 22%.
Something that I suspect most of us are thinking (other than Migraine) is whether it is too late to pick up shares in oil companies. We have heard Erik Nuttal talk about how we are just in the early stages of a super bull market for oil, but Erik is a bit of a promoter.
Now we see that BRK just bought another 18 million shares of OXY at an average of $54.41, which is up 94% from one year ago. One thing we all know is that Buffet is a stickler for buying value.
As much as I hate the thought of paying $39 for SU shares now when my average cost is $23, I'm convinced that it is time to add. If it is the right time to buy oil producers for The Oracle, the timing works for me.
The real question for me is:
Should I buy SU shares, or options? If the answer is options, which ones?
Migraine: are you out there or are you busy crushing life on the weekend???