To The Moon

Trading week 15 May to 19 May 2023 It is my personal belief that this week will be one of a “confused” state; up one day and down the next. It remains as such until the Debt Limit “crisis” is resolved. I have covered (in details) in my 02 May post - Will US Debit Limit Cause US Stock Market To Crash? (click here to read, show some love, give a “LIKe” - tks). The 2 political parties have turned this into a power struggle between themselves. Best case scenario - the issue is resolved by this week. Both parties will be meeting today, 16 May after it was postponed last Fri, 12 May. It does not look optimistic though. Worst case scenario - Treasury Dept will have more work to do by juggling whom to pay and whose payment will be delayed. This will disrupt stock market (based on similar 2011 incident). For the bold, this might presents a good buying opportunity? While remaining attentive to the bubbling crisis, its progress and development, I will not fret nor over focus on it because there is nothing I could do. Que sera sera ! Instead, I am more curious about what Mr Warren Buffett is doing: During this period of uncertainty & volatility and To position $Berkshire Hathaway(BRK.B)$ in the process. If you have been keeping up with your readings, you would’ve known that Mr Warren Buffett has sold & exited $Bank of New York Mellon(BK)$ and bought into $Capital One(COF)$ . A lot of media has covered the Capital One purchase. I am certain that its stock price will definitely “run” today - 16 May 2023; given that there will be “hot” monies to be made. However, I am drawn more to another post about Berkshire Hathaway. This post has received no media coverage at all; except by Barron’s. I am intrigued because Mr Buffett already own 23% of $Occidental(OXY)$ since its initial 2019 investment. I have covered (in details) in my 08 May post “$OXY Falls Today After What Mr Buffet Said At Saturday Meeting?“ (click here to read, show some love, give a “LIKe”). Questions Swirling In My Mind: Why is Mr Buffett adding more Occidental Petroleum to his holdings? Should we emulate his investment strategy and buy into the oil stock? Hope you will be “surprise” by what I have learnt and what I think is unfolding: He is betting on a recovery of the economy. It has been that many months since US re-opened its border since 08 Nov 2021. Occidental Petroleum is a cyclical stock. It should “fly” when the economy is growing and consumer spending returns. Occidental has a strong position in the Permian Basin - US’s largest & most productive shale oil field. The Anadarko acquisition gave Occidental access to >1.8