Occidental Petroleum Corp (OXY)

Up 58% in Q1 and one of the best performers on the S&P. Is benefitting from high oil prices brought on by the Mideast war. But it outperforms the market when it rally, but also falls further when the market slides. This will be a big loser when peace is reached in the Middle East.

No reason for the stock to be compelling, except that Berkshire Hathaway is a significant shareholder. Very good position in the Permian. Starting to pivot from incinerating shareholder capital in green energy. Trades at a premium relative to Canadian peers.

Instead, look at CVE.

A name to consider instead of CVX.

He shares the caller's bewilderment. Why didn't Warren come to Canada with its better valuations and resource depth? Could be because it has a clean tech division which earned tax credits when ESG was stronger than today. Inventory challenges. Better opportunities elsewhere.

Yes, Warren Buffet owns it, but OXY has a lot of debt.

It is very cheap. It tracks the price of crude pretty well and is still trading below when crude was at its lows a couple of years ago. He think oil is going to $85. It is an undervalued oil trade so he would consider options. Pays a nice dividend.      Buy 8  Hold 19  Sell 1

Berkshire just added to their large position, now 28%. This is a make or break quarter for energy. There's a divergence between the spot price of oil and oil stocks. Stop looking at that price which had gone nowhere in over 2 years.

With a strong balance sheet and earnings growth, OCY bought Crownrock. However, this won't make a difference in the face of supply of crude oil overwhelming demand. Yes, Berkshire's ownership is like a stamp of approval and is a big reason to own Oxy.

Is shocked this hasn't move up more after Buffett added more shares and the war in the Middle East.

He bought this late. Bought it because one of the greatest investors, Buffett, in the world bought it. Energy is a tough sector; expects the momentum will eventually turn and oil falls to the $80s.

Investors think the oil market is still in 2022. It's not. Would sell energy, though still holds this. Is nothing more than a hold.

Likes it. Encouraging. Warren Buffett, one of the shrewdest, most patient investors of all time, is stepping up in the face of widespread negative sentiment. The most uncomfortable buys are usually the best ones. Don't chase the herd and buy NVDA. Be patient and tune out the noise.