Occidental Petroleum

On December 19th of last year, Berkshire Hathaway aka Warren Buffet bought 400 million dollars worth of stock in Occidental Petroleum. This wasn’t the first purchase of Berkshire in Occidental Petroleum, but this buy proved to be the turnaround for OXY.

This major buy order by Buffet was perfectly timed, one would think. As that buy was on the ultimate bottom of the stock price of OXY. But we better think further. Buffet influences so many other traders and investors that the stock gets overbought. And just too little stock are left on the market. Obviously the price of the stock goes up after such a move.

Too big to be wrong

Berkshire Hathaway as a holding has become so big, that it makes the market. The volumes in which they buy immediately influence the stock price and move it up or down depending on buying or selling.

So, essentially, Buffet is too big to be wrong…
He makes or brakes a stock!

Sincerely,

Pele23

Posted Using INLEO