This Warren Buffett Stock Just Hit Its Lowest Price in 2 Years. Why Isn't He Buying More?

Core Viewpoint - Warren Buffett has halted his consistent purchasing of Occidental Petroleum shares, despite previously buying whenever the stock traded below $60, as he now holds more cash than investment ideas [2][4][5]. Group 1: Investment Strategy - Berkshire Hathaway's cash and Treasury holdings could exceed $300 billion by the end of Q3, driven by Buffett's decision to sell stocks without reinvesting [2]. - Buffett has sold over $7 billion worth of Bank of America stock since the start of Q3, indicating a trend of selling more stocks than buying [3]. - Occidental Petroleum shares are currently near a two-year low, yet Buffett has not added to his position, suggesting a shift in investment strategy [3][4]. Group 2: Occidental Petroleum's Financials - Occidental's stock price has fallen close to $50, and Buffett has not purchased more shares despite previously buying below $60 [4][5]. - The price of West Texas Intermediate crude oil has dropped about 15% since the start of Q3, impacting Occidental's earnings [7]. - Occidental's management aims to reduce debt from approximately $19.7 billion to $15 billion by the end of 2026 or Q1 2027, having already retired $3 billion of debt in Q3 [8]. Group 3: Market Position and Future Prospects - Occidental's portfolio, particularly in the Permian Basin, positions it favorably for future earnings when oil prices rise [13]. - The company is investing in carbon capture technology, receiving a $650 million award from the U.S. Department of Energy for a Direct Air Capture Hub, which could lead to significant future revenue [14]. - Occidental shares currently trade at an enterprise-value-to-EBITDA ratio of about 5.4, a discount compared to larger peers, making it potentially attractive for investors bullish on oil prices and carbon capture [15].