Berkshire's OxyChem Deal: Warren Buffett Provides A Model For Investing In An Overpriced Market

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Oct. 20, 2025 9:15 AM ETBerkshire Hathaway Inc. (BRK.A) Stock, BRK.B Stock, OXY StockAAPL, BAC, BRK.A, BRK.B, OXY2 CommentsJim Sloan22.83K FollowersBuffett's acquisition of OxyChem is a model for how to invest when the market as a whole is expensive.The core of his approach is to buy absolute value and ignore market opinions.The context for Buffett was likely the decline in yield on T-bills, making the purchase of a conservative stock more attractive.The context for OXY was to reduce debt to offset the CrownRock acquisition and leverage focus on E&P.Both sides of the deal achieved their objectives.jetcityimage/iStock Editorial via Getty ImagesCarpe diem: Grab The OpportunityThere have been a number of articles recently, here at Seeking Alpha and elsewhere, discussing possible strategies for dealing with an equity market that seems expensive to experienced investors with good long-term results. In such a market it'sThis article was written byJim Sloan22.83K FollowersI am a retired professor, a retired investment adviser, and currently a private investor and full-time tennis pro. I bought my first stock in a custodial account in 1958. I am a student of history, particularly military and economic/market history. The intellectual passions of my retirement years have been markets, mathematics, and quantum theory. Recently I have found myself reading book after book on the thoughts and feelings of animals, and I believe they are subtly influencing some of my views. I have a cat I like a lot. I like to travel. I served in Vietnam.Analyst’s Disclosure:I/we have a beneficial long position in the shares of BRK,B either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments(2)