Strategy Simplified S20E16: Why Warren Buffett Just Bet $10 Billion on Chemicals
Oct 2, 2025
26:29
Warren Buffett is still making big moves at 95 years old. His latest play? A $10 billion bet on OxyChem, the petrochemical arm of Occidental.
In this episode of Market Outsiders, Namaan and Jenny Rae unpack what makes this deal stand out. They break down the financial engineering behind it, why debt reduction matters in today’s macro climate, and how it fits into the broader Buffett Playbook.
From shareholder buybacks to Buffett’s trademark “handshake” style, this is a masterclass in deal dynamics.
Links mentioned in the episode:
- Occidental 10-K (FY 2024)
- Latest Buffett Shareholder Letter
- Previous episode: What Record Stock Buybacks Signal (August 11, 2025)
- Previous episode: Kraft Heinz Breakup Signals the End of Scale at All Costs(September 2, 2025)
- Invest in Project Management Training for your team
Timestamps:
- 00:19 Buffett at 95 makes a $10B deal
- 01:26 The Buffett Index and Woodstock of Capitalism
- 02:32 The Buffett Playbook: deal vs. business
- 05:28 Breaking down the OxyChem acquisition
- 06:18 Why stock buybacks matter
- 08:17 Debt, interest rates, and timing the deal
- 12:07 Berkshire’s 28% stake in Occidental
- 15:34 Buffett’s secret: the handshake
- Listen to the Market Outsiders podcast, the new daily show with the Management Consulted team
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