This Warren Buffett Stock Is Now a No-Brainer Buy -- Thanks to the Trump Administration

Throughout his vocation and particularly successful his aboriginal years, Warren Buffett became highly attuned to existential risks to the system and Berkshire Hathaway's (NYSE: BRKA) (NYSE: BRKB) business. Buffett's doctrine has agelong been that helium would tally Berkshire Hathaway arsenic if investors had each of their savings invested successful Berkshire stock. That means protecting Berkshire from "1-in-100-year" risks to the top grade possible.

One happening that tin earnestly upset markets, and perchance Berkshire's business, is simply a terrible lipid daze owed to geopolitics. We are presently seeing this close present amid the warfare successful Iran and the consequent blocking of the Strait of Hormuz.

The existent authorities of negotiations betwixt the U.S. and Iran is tenuous, and lipid prices person spiked from beneath $60 astatine the opening of the twelvemonth to $93 per tube arsenic of this writing, adjacent contempt releases from the U.S. Strategic Petroleum Reserve.

Fortunately, Buffett's holding of Occidental Petroleum (NYSE: OXY), successful which Buffett archetypal invested successful 2019, stands to uniquely payment from persistently higher lipid prices, offsetting the shock. And though the banal is up this year, it's obscurity adjacent costly should lipid prices stay persistently high.

Buffett apt chose Occidental arsenic 1 of his 2 large lipid and state investments owed to its heavy inventory successful the United States, particularly successful the Permian Basin of West Texas.

Overall, Occidental has implicit 30 years of inventory, 88% of which is successful the United States, with 84% breaking adjacent astatine nether $50 per barrel, and a important information of those under-$50 reserves costing little than $30 per barrel.

Occidental's geographic position, with its reserves, positions it to withstand and yet payment from lipid shocks abroad.

Occidental is besides highly delicate to lipid prices, adjacent much truthful than different lipid and state majors. This is owed to 2 reasons. First, galore large-cap lipid and state plays person assorted midstream, chemical, and downstream refining arms, which mostly run connected volumes and spreads. However, Occidental is chiefly focused connected axenic upstream lipid and state exploration and production, particularly aft selling its OxyChem chemicals concern to Berkshire successful January.

Second, Occidental carried a precocious indebtedness load pursuing its acquisitions of Anadarko successful 2019 and CrownRock successful 2023. While Occidental had done a bully occupation of chipping distant astatine that indebtedness since CrownRock closed, it inactive had $20.4 cardinal successful indebtedness astatine year-end 2025.