No. of Recommendations: 8
I'm not a fan of Buffett buying the OXY chemicals business - IF someone else is willing to buy it. The important thing is to reduce OXY's debt.
The OXY chemical business is a pure commodity business - no moat of substance. Not where I'm hoping BRK's cash goes on a permanent basis. We've already got enough businesses that just grow with the economy.
At a minimum, this should not be a "sweetheart" deal. It's not up to OXY to set the price at $10 billion. Let's see what others are willing to offer. Recessions hurt commodity businesses. What's the rush? Wait until Trump's actions pass through to the economy.
Vickie hasn't done anything to deserve a "good" price.
We paid the US government $76 million in capital gains in exchange for more cash that we don't need. Why now spent part of that on OXY?
Cue Peggy Lee - "Is that all there is?"
https://www.youtube.com/watch?v=LCRZZC-DH7M 