Berkshire Hathaway Reshapes Occidental with $9.7B OxyChem Deal

Validea’s guru reports show several large-cap names rate highly under Warren Buffett’s Patient Investor model—Costco (92%), Accenture and Novo Nordisk (86%), Lululemon (79%) and Union Pacific (75%)—indicating predictable profitability, low debt and reasonable valuations. At the market level, the Buffett Indicator has surged to record highs (roughly 200–217%), prompting warnings that stocks may be overheated and that AI-driven concentration in mega-cap tech could be creating bubble risk. Prominent investors and officials, including Warren Buffett, JPMorgan’s Jamie Dimon and Federal Reserve Chair Jerome Powell, have signaled caution as valuations climb well above historical norms. Berkshire Hathaway holds a large stake in Occidental Petroleum and is buying OxyChem for $9.7 billion to add stable, cash-generating chemical operations consistent with Buffett’s preference for durable businesses. Buffett’s enduring advice—to separate market price from intrinsic value—is reinforced by these moves and by his admitted regret for missing early investments in Amazon and Google.