To The Moon

Wall Street Doubts, Buffett Invests — Who’s Got It Right This Time?🤔

Wall Street just turned bearish on Warren Buffett’s empire — but the Oracle of Omaha isn’t slowing down.

Earlier this week, KBW downgraded Berkshire Hathaway $Berkshire Hathaway(BRK.A)$ $Berkshire Hathaway(BRK.B)$ to “underperform”, citing slowing growth across several businesses: GEICO’s margin pressure, BNSF Railway’s trade exposure, and lower interest income from Berkshire’s record $344 billion cash pile. Since Buffett announced his plan to step down as CEO in early 2026, Berkshire’s Class A shares have trailed the S&P 500 by more than 28 percentage points.

So when a downgrade hits, most investors step back. Buffett? He writes a $9.7 billion check.

Earlier this month, Berkshire agreed to acquire OxyChem, the chemical arm of Occidental Petroleum $Occidental(OXY)$ — one of Buffett’s long-time investment partners. The deal adds a strong industrial asset to Berkshire’s portfolio, producing chlorine, PVC, and other essential materials for construction and water systems. More importantly, it extends Berkshire’s energy and industrial footprint, sitting neatly alongside Lubrizol (acquired in 2011) and Berkshire Hathaway Energy.

💬 So what’s the logic behind this old-school move?

At a time when markets are obsessed with AI and trillion-dollar tech valuations, Buffett is once again doubling down on the real economy — the parts that build, move, and power the world. OxyChem isn’t flashy, but it throws off consistent cash flow and sits at the heart of America’s industrial supply chain.

It’s classic Buffett: buying quality, cash-generating businesses when the rest of the market chases hype.

Of course, the downgrade isn’t meaningless. Berkshire faces real headwinds — from insurance competition to lower Treasury yields. But Buffett’s move shows confidence in long-term value creation over short-term sentiment.

In his final stretch as CEO, Buffett seems to be leaving a message for investors:

“Real value doesn’t trend — it compounds.” 📈

📅 Next up: Berkshire’s Q3 earnings are just around the corner (Nov. 1, 2025).

Berkshire Hathaway will report its Q3 2025 results on November 1 (U.S. time). Analysts expect earnings of $5.74 per share and revenue of around $83.4 billion, down roughly 10% from a year earlier. The decline mainly reflects softer performance in its insurance and railroad units, partly offset by stable results in energy and industrial operations.

Consensus estimates point to average quarterly earnings of $8.68 billion, up from $7.02 billion a year ago, according to TipRanks data. The stock currently holds a “Buy” rating, with most analysts seeing about 11% upside over the next 12 months.

With the OxyChem acquisition fresh on the table, investors will be watching closely to see if Buffett’s “real economy” bet shows early signs of paying off — or if Wall Street’s downgrade calls the cycle right this time. 👀💰

💭 What do you think, Tigers?

• Is Buffett’s $9.7B OxyChem deal a timeless value play or a risky old-economy bet?

• Would you follow him — or stick with AI and tech momentum instead? 🚀