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The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: shaun1776 ✸  😊 😞
Number: of 22352 
Subject: Re: OxyChem Deal: , another opinion,
Date: 10/08/25 10:42 AM
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No. of Recommendations: 4
BRK doing a deal with a OXY when BRK is a major OXY shareholder is like paying yourself. In this case the purchase converts BRK cash into ownership of the chemical company as well as reducing debt and increasing cash at OXY. Reducing debt at OXY provides direct value to BRK. BRK uses $9.7B cash and gets the chemical business worth supposedly >$10B and 32.7% of $6.5B debt pay down and the same percentage of $9.7 - $6.5B = $3.2B of cash at OXY.

So net advantage to BRK:
>$10B chemical business
$2.12B OXY debt pay down
$3.2B OXY cash infusion
———
Total benefit $15.32B

Shaun
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This community has written 21,861 posts about Berkshire Hathaway. The article-length ones it recommended most:
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