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

Management Consulted Season 20 Episode 16

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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:

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
  • Listen to the Market Outsiders podcast, the new daily show with the Management Consulted team

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