Not gonna lie, investors everywhere will miss the Buffett Q&A when he hands over the reins to Greg Abel at the end of the year. The ritual of plain talk and arithmetic-first investing had been a beacon for investors worldwide for decades.

On the scoreboard, Berkshire Hathaway  (BRK.A) ,  (BRK.B)  stock has held tough, despite being up against multiple headwinds this year. Class A and B shares are both up nearly 11% year-to-date. Additionally, Berkshire stock comfortably sits in the $1 trillion club, a scale that typically accompanies optionality.

Q2 earnings set the table.

Operating earnings came in at $11.2 billion, falling 3.8% year-over-year, with Berkshire recording a massive $3.8 billion Kraft Heinz write-down. 

Its cash war chest reached a record $344 billion, with management signaling caution by selling more stocks than it bought for an eleventh straight quarter while pausing buybacks.

Nevertheless, Buffett reminded shareholders that “the substantial majority of your money remains in equities,” in a nod to long-term U.S. stock preference even as cash builds.

Against that backdrop, multiple reports point to Berkshire quietly lining up a sizable purchase linked to its long-running Occidental Petroleum  (OXY)  bet. 

The strategy echoes Buffett’s enduring formula of holding cash until the right opportunity appears, then fully committing to an earner built for the long haul.

Warren Buffett circles a $10 billion move, Berkshire’s largest since 2022.

Image source: Zuchnik/WireImage via Getty Images

Warren Buffett may finally be pulling the “elephant gun”

According to a Wall Street Journal report, Berkshire Hathaway is closing in on a nearly $10 billion cash deal to buy Occidental’s petrochemicals arm, OxyChem.

If the deal goes smoothly, it will be the investment giant’s largest acquisition since Alleghany in 2022, deploying part of its record $344 billion cash pile.

OxyChem generates steady, mid-cycle cash flows from chlor-alkali/PVC and water-treatment chemicals. It posted a sizeable $2.42 billion in first-half revenues in 2025, and generated an eye-catching $213 million of pre-tax income in the second quarter of 2025.

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The move also fits perfectly with Berkshire’s long history in chemicals (Lubrizol, $9.7 billion in 2011), along with deep ties with Occidental. In 2019, Buffett financed OXY’s Anadarko bid with a whopping $10 billion of 8% preferreds, including warrants.

For Occidental, an OxyChem sale helps it de-lever after Anadarko and CrownRock, with a mounting debt load exceeding the $23.3 billion mark as of June. 

Strategically, it’s classic Berkshire, where it’s looking to scoop up a durable industrial cash machine outright, instead of a minority stake at a premium multiple.

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Moreover, it lays the groundwork for the Greg Abel era. Abel, an energy operator who’s been instrumental in building Berkshire Hathaway Energy, will take the CEO seat by the end of the year.

Quick takeaways:

  • Deal talk: $10 billion deal in all cash, likely “within days,” per reports
  • Berkshire cash: Record $344 billion cash pile as of June
  • OxyChem first-half 2025 sales: $2.42 billion with Q2 pre-tax income at $213 million
  • Occidental debt load: $23.3 billion as of June

Warren Buffett’s investing philosophy

Warren Buffett’s approach is surprisingly simple and relentlessly consistent.

His goal over the years has been to identify businesses that are easy to understand, boast durable moats, and can be scooped up at sensible prices. 

Once acquired, Buffett lets capable managers compound the cash over the next several years. As he often puts it, “Price is what you pay. Value is what you get.” he’s also said: “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

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Buffett also leverages insurance float as a low-cost means of financing, prefers control when the economics align, and continues to maintain a sizable cash position when opportunities are scarce. 

His timing long echoes another one of his mantras: “Be fearful when others are greedy and greedy when others are fearful.”

Berkshire Hathaway’s acquisition record reflects that playbook.

The company continues to favor critical infrastructure and industrial engines with steady demand, including railroads, aerospace components, and chemicals. 

Big moves come in bursts during market dislocations, along with long stretches of patience that let previous bets compound.

Berkshire’s biggest deals since 2005

  • BNSF Railway: $44 billion (2009-2010)
  • Precision Castparts: $37.2 billion (2015)
  • Alleghany: $11.6 billion (2022)
  • Lubrizol: $9.7 billion (2011)
  • Dominion Energy gas assets: $9.7 billion (2020)

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