Warren Buffett Has A Sad: He Put $10 Billion Into Occidental Petroleum Last Year

[hatrack]

Warren Buffett, the chairman and CEO of Berkshire Hathaway Inc., this weekend lamented the $10 billion investment he pumped into Occidental Petroleum Corp. last April and said he plans to invest more money into wind and solar power. “If you’re an [Occidental] shareholder or any shareholder in any oil-producing company, you join me in having made a mistake,” he said, referring to negative oil prices late last month that happened as a result of the oversupplied U.S. oil market and collapsing demand (Energywire, April 21).

“It was attractive at oil prices that then prevailed,” Buffett said of Berkshire’s Occidental bet. “It doesn’t work, obviously, at $20 a barrel. It certainly doesn’t work [at] minus $37 a barrel.” The famous investor predicted that “oil production is going to go down a lot in the next few years because it does not pay to drill.”

Buffett’s comments were made in Omaha, Neb., at the conglomerate’s annual shareholder meeting. The closely watched event — a largely online affair this year due to the coronavirus pandemic — stretched nearly 4 ½ hours. Climate change never came up.

Berkshire has a market capitalization of more than $433 billion and owns several electric and gas utilities and electric transmission and pipeline companies. Berkshire executives said Saturday they’re looking at boosting the company’s renewable energy portfolio.

Ed. - Good idea!!!

EDIT

https://climatecrocks.com/2020/05/07/further-financial-flight-from-fossil-fuels/

[Chainfire]

1. It must be nice

to be able to survive losing ten billion dollars. If I lost that much money I would be broke......

[SWBTATTReg]

2. The 'great and mighty wizard of wall street' admitting to a mistake in his investing? Wow.

And Trump wanted fossil fuels as his baby, I guess it isn't going to happen if oil prices are at zero or less a barrel.

It's kind of ironic that oil, the bell weather item to have in one's investment portfolio, has sunk literally to such lows. Who would have ever thought oil would go below negative prices for a barrel of oil? Again, another item touched and blessed by rump (the fossil oil industry vs. solar/wind) taking a big hit.

At least rump dragged the Russians into this mess too, their economy relies far more on oil exports to the West for income, I wonder what they are going to do now? Perhaps also, the Russians might start re-evaluating their support and/or the propping up of rump so much? After all, everybody is winning!

[duforsure]

3. He also changed his holding on airlines

And if reported true now has zero in that field now. Even he knows a market crash will be coming soon. Trump is wanting more corporate stimulus again, our money, to then pressure them into buy backs again so he can claim the economy (falsely) is doing great again. He did this before. No telling how much he has them printing money for his political benefit from it. He won't be able to do enough, and we will see consequences from it.

[abqtommy]

4. I guess Warren has forgotten something I learned long ago about not investing money you can't

afford to lose...