Investors should avoid Occidental Petroleum as Warren Buffett’s move could mirror his soured 2008 bet on ConocoPhillips, Bank of America says
Investors shouldn''t follow Warren Buffett in his buying spree of Occidental Petroleum, according to Bank of America. The bank said there is limited upside in Occidental and that Buffett risks bidding against himself for the stock. The bank reminded investors that Buffett has a spotty track record when it comes to investing in oil companies. Should investors follow Warren Buffett as his Berkshire Hathaway continues to build a stake in Occidental Petroleum ? According to Bank of America , the answer is "no." The bank reiterated its "Neutral" view on Occidental in a Monday note to investors, setting an $80 price target, which represents potential upside of about 12% from current levels. "If [Buffett''s stake in] Occidental Petroleum is a bullish view [on oil prices] there are better options given its limited upside," BofA said. Buffett already owns more than 20% of the company, has warrants to purchase even more of the stock, and was granted approval last week to purchase up to 50% of the company.
Investors should avoid Occidental Petroleum as Warren Buffett’s move could mirror his soured 2008 bet on ConocoPhillips, Bank of America says
Investors shouldn''t follow Warren Buffett in his buying spree of Occidental Petroleum, according to Bank of America. The bank said there is limited upside in Occidental and that Buffett risks bidding against himself for the stock. The bank reminded investors that Buffett has a spotty track record when it comes to investing in oil companies. Should investors follow Warren Buffett as his Berkshire Hathaway continues to build a stake in Occidental Petroleum ? According to Bank of America , the answer is "no." The bank reiterated its "Neutral" view on Occidental in a Monday note to investors, setting an $80 price target, which represents potential upside of about 12% from current levels. "If [Buffett''s stake in] Occidental Petroleum is a bullish view [on oil prices] there are better options given its limited upside," BofA said. Buffett already owns more than 20% of the company, has warrants to purchase even more of the stock, and was granted approval last week to purchase up to 50% of the company.