The Warren Buffett Dividend Death Spiral In Occidental Petroleum (OXY) Preferred Stock

The Warren Buffett Dividend Death Spiral In Occidental Petroleum (OXY) Preferred Stock. The Wall Street Journal (WSJ) Published an article named "Warren Buffett's Death-Spriral Deal". This is about the cumulative preferred stock dividend that he receives from Occidental Petroleum (OXY). I explain what a cumulative preferred stock dividend is, and how he got it while helping OXY finance its purchase of Anadarko Petroleum, outbidding Chevron (CVX), less than a year ago. This preferred dividend stock is structured similar to the so called "death-spiral" deals than many penny stocks do. The end result is that this death-spiral deal can end up giving Warren Buffett and Berkshire Hathaway (BRK.A) a larger stake in Occidental Petroleum if they are forced to pay out his preferred dividend in shares of OXY instead of cash. In this video I explain simply how Warren Buffett structured this preferred dividend stock in a way that acts like the penny stock death spiral deals and what this means for OXY shareholders. I also explain how much their OXY shares may be diluted as Berkshire Hathaway (BRK.A) takes a larger and larger portion of Occidental Petroleum (OXY). Will Warren Buffett eventually end up owning most of Occidental Petroleum (OXY)?

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