S20E16: Why Warren Buffett Just Bet $10 Billion on Chemicals

Update: 2025-10-02

Description

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)
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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

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