:max_bytes(150000):strip_icc()/GettyImages-849890580-231676ad8bfc416a90904c698584772b.jpg "Warren Buffett Is Moving Away From Tech — Here’s What He’s Buying Instead")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-849890580-231676ad8bfc416a90904c698584772b.jpg)
Key Takeaways
- Berkshire Hathaway acquired OxyChem for $9.7 billion, marking Buffett’s largest deal since 2022.
- The deal may be Buffet’s last as CEO before he steps down.
- The petrochemical business manufactures commodity chemicals like chlorine and sodium hydroxide, which are used in water treatment, healthcare, pharmaceuticals, and more.
- Wall Street reacted negatively to Occidental Petroleum’s stock after the sale announcement, with shares falling 7%, though analysts see strategic value for Berkshire.
At the age of 95, the Oracle of Omaha, Warren Buffett, has unleashed his biggest investment in years, and it isn’t in tech or finance. The Berkshire Hathaway (BRK.A, BRK.B) chairman and CEO is snapping up OxyChem (OXY), Occidental Petroleum’s chemicals business, for $9.7 billion in an all-cash deal.
The Deal
On Oct. 2, 2025, Berkshire Hathaway and OxyChem announced that Berkshire will acquire OxyChem, Occidental’s commodity chemicals arm, for $9.7 billion. The deal, which is pending approvals, is all-cash and funded from Berkshire’s massive war chest. OxyChem makes industrial chemicals used in water treatment, construction materials, healthcare supplies and more. Occidental will use about $6.5 billion of the proceeds to pay down debt, which should boost its balance sheet.
In practical terms, Buffett effectively buys a business he already knows: Berkshire already owns roughly 27% of Occidental, so this is a way to double down on a key subsidiary. Notably, this price tag is Buffett’s largest deal since Berkshire bought insurer Alleghany in 2022.
$9.7 Billion
In 2025, Berkshire is set to acquire OxyChem for $9.7 billion. In 2011, Berkshire paid $9.7 billion for Lubrizol (a specialty chemicals maker), and in 2020, it paid another $9.7 billion for Dominion Energy’s gas business.
The Logic Behind It
Why chemicals? For Buffett, this acquisition checks several boxes. First, there’s stable demand. OxyChem’s products—for example, chlorine—are used in essential industries like water treatment and housing development. Second, the deal deploys Berkshire’s cash into a productive asset. Rather than earning near-zero interest on Treasury bills, Buffett turns $9.7 billion of idle cash into a business generating operating profits. Third, there are synergies with his other energy bets. Buffett already owns massive stakes in oil and gas and Berkshire Energy runs pipelines, so adding OxyChem is financially and strategically sensible.
Market Reactions
Occidental’s stock fell about 7% when the deal was announced. However, analysts were broadly positive. Doug Leggate of Wolfe Research called the move “genius” and a “win-plus for Berkshire”: Berkshire gets a strong standalone business, and Occidental slashes debt on its balance sheet. In short, investors viewed it as a savvy allocation of capital. Occidental’s shares dipped on the lost earnings, even though it now has a healthier balance sheet. Meanwhile, Berkshire Hathaway’s own stock barely budged—a $9.7 billion deal is a drop in the bucket for the holding company—suggesting shareholders weren’t panicked.
The Bottom Line
Buffett has always favored businesses he understands—it’s his famous “circle of competence.” He’s long avoided tech fads, preferring industries like insurance, utilities, railroads, and pipelines. So it’s no surprise he’s steering clear of Silicon Valley here. Instead, he’s double-clicking on something old-economy: petrochemicals and industrial inputs. In that sense, the OxyChem deal is textbook Buffett: buying a solid business with steady demand. One thing’s for certain: at 95, Buffett is still finding opportunity where others aren’t looking.
