The Curious Case of Occidental Petroleum in 2025

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The year 2025 promises to be an eventful one for Occidental Petroleum (OXY)-though whether this event is a splendid celebration or a tragic farce remains to be seen. As always, the market’s fickle temperament ensures that I will be watching Occidental’s stock price with the sort of detached interest usually reserved for a car crash unfolding in slow motion. I shall, however, pay particular attention to the antics of Occidental’s primary benefactor, Berkshire Hathaway-most notably, the doings of one Warren Buffett, whose influence seems as ubiquitous as it is insufferable. The prospect of the Oracle of Omaha divesting from Occidental before the year’s end adds an extra layer of intrigue, though whether it is a masterstroke or a belated admission of folly is still unclear.

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A Love Affair with Occidental: Buffett’s Enthralling Obsession

Let us not be mistaken-Warren Buffett has a decidedly affectionate disposition toward Occidental Petroleum. This, it seems, began in 2019 when he first perused the company’s annual report, no doubt while sipping something brandy-fueled and pondering the absurdity of life. Berkshire Hathaway, in a stroke of capitalistic love, began amassing Occidental stock, eventually acquiring a staggering quarter of the company’s shares, complete with warrants to purchase even more. Buffett, in his customary charm, confessed that he envisages holding onto these shares “indefinitely”-an audacious promise, as though he were making vows at a wedding, not managing a portfolio.

Yet, the key point to bear in mind-lest we become entranced by the buffoonery of it all-is that this stake belongs to Berkshire Hathaway, not to Buffett personally. As the year’s end approaches, we are reminded that Buffett will step down as the chief executive of the conglomerate he built, though he shall remain perched as the chairman of the board. The future of the company, and of its far-reaching investments, will henceforth be guided by his underlings-men and women who, while largely subscribing to Buffett’s worldview, have occasionally demonstrated a penchant for irreverent mischief. Their capital allocation decisions occasionally stray from the path that Buffett himself would have chosen, suggesting that Occidental’s place in the portfolio may not be as secure as one might think.

The End of an Era: What Will Happen After Buffett Departs?

It would be foolish to presume that Berkshire Hathaway’s investment in Occidental Petroleum is solely a product of corporate strategy. No, it is far more likely to be the result of Buffett’s personal infatuation-his relentless optimism, bordering on the delusional, about this particular oil-and-gas behemoth. But as with all things in life, time marches on. Buffett’s retirement, though not wholly unexpected, poses an interesting dilemma. Once he retreats from the spotlight, will the men and women left in charge continue to coddle this bloated, imperfect asset? Or will they, as is often the case with new custodians of old legacies, jettison it in favor of something more fashionable, more profitable-or, perhaps, more sensible?

I will be scrutinizing Berkshire Hathaway’s regulatory filings in the months to come, not out of a misplaced sense of devotion to the capital markets, but because the shifting of Buffett’s personal influence is nothing short of an investment melodrama, one whose denouement will likely be far less elegant than its opening act. As always, the real question remains: when will the house of cards finally collapse? Perhaps not in 2025-but it’s worth watching, if only for the tragicomic spectacle it promises to deliver.

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2025-08-28 17:31