Berkshire Hathaway Inc (BRK.B)

[Prudent Capitalist]

This Warren Buffett Stock to Own Forever Is a Buy Today

Buffett expects to own some stocks indefinitely—and one of those stocks looks cheap today.

This Warren Buffett Stock to Own Forever Is a Buy Today

1. Occidental Petroleum OXY

What stock is that? It’s Occidental Petroleum OXY. Berkshire owns more than 28% of the company’s outstanding shares. Oxy is one of the world’s largest independent oil and gas producers. Buffett thinks the company’s leadership position in carbon capture initiatives could bear fruit, too. Morningstar doesn’t think Oxy has carved out an economic moat, due largely to the expensive acquisition of Anadarko Petroleum in 2019, which dented Oxy’s profitability. But management has been deleveraging the company’s balance sheet, and we think the books look better than they have in several years and that the company is on the cusp of consistently earning its cost of capital. The stock looks cheap today. We think Oxy’s stock is worth $59 per share.

https://www.morningstar.com/stocks/this-warren-buffett-stock-own-forever-is-buy-today-2