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

[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/