Locator: 49410ORACLE.
With regard to Big Cap tech, the fog is beginning to clear.
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Disclaimer
Brief
Reminder
Briefly:
- I am inappropriately exuberant about the Bakken and I am often well out front of my headlights. I am often appropriately accused of hyperbole when it comes to the Bakken.
- I am inappropriately exuberant about the US economy and the US market.
- I am also inappropriately exuberant about all things Apple.
- See disclaimer. This is not an investment site.
- Disclaimer: this is not an investment site. Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here.
- All my posts are done quickly: there will be content and typographical errors. If something appears wrong, it probably is. Feel free to fact check everything.
- If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them.
- Many posts are not proofread for several days after they've been posted.
- Reminder: I am inappropriately exuberant about the Bakken, US economy, and the US market.
- I am also inappropriately exuberant about all things Apple.
- And now, Nvidia, also. I am also inappropriately exuberant about all things Nvidia. Nvidia is a metonym for AI and/or the sixth industrial revolution.
- I've now added Broadcom to the disclaimer. I am also inappropriately exuberant about all things Broadcom.
- And Oracle.
- Longer version here.
BRK-B
- S&P 500: up 13%
- BRK-B: up 4%
Meanwhile, the Buffet watch, link here. From the linked article:
Berkshire Hathaway has a deal to pay $9.7 billion in cash to buy OxyChem, Occidental Petroleum’s chemical business.
It could be Warren Buffett’s last major acquisition before he gives up his CEO role at the end of the year.
It is Berkshire’s biggest deal since it paid $11.6 billion for insurer Allegheny in 2022, but it is not the enormous “elephant” that Buffett has been hunting for that would put a significant dent in the company’s roughly $340 billion in cash as of the end of June.
The deal builds on an already close relationship between the companies: Berkshire is Occidental’s largest shareholder with a stake of almost 27% currently valued at $11.9 billion.
In addition, Occidental is paying an 8% dividend on more than $8 billion in preferred shares held by Berkshire after what was, in effect, a loan to help OXY buy Anadarko Petroleum in 2019.
As part of that deal, Berkshire also now holds warrants to buy nearly 84 million additional OXY common shares for just under $60 per share, which is higher than their current price just under $45.
Despite those ties, Buffett told shareholders two years ago Berkshire will not try to acquire Occidental in its entirety.
In a live interview on CNBC’s “Squawk Box” the morning of the announcement, CEO Vicki Hollub said it will use $6.5 billion of the OxyChem purchase price to reduce its debt, bringing it below the $15 billion target set when it bought Permian Basin producer CrownRock in late 2023 for $12 billion.
“Now we’re going to be able to start our share repurchase program again ...
