Subject: Re: BRK - OXY
Similar to Pfizer buying Seagen. Take on a lot of debt to acquire valuable assets for the future, and then work it out so that you’re left with a strong core business and a clear focus. Takes a while. But when it succeeds, the rewards usually justify the risk.

Pfizer is the poster child for companies making one disastrous acquisition after another. Stock is at 1998 prices.

Both Kraft and Oxy have not been the Buffet’s best deals. The saving grace of the Oxy investment are the preferred shares. The warrants are very likely to expire worthless. The equity purchases are likely to be in the red for a long time, especially if oil prices go lower in a recession and/or OPEC raises output. Buffett made another error in selling the warrants issued in lieu of dividends in 2020 and then later buying equity at much higher prices.