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Good afternoon: |
If you woke up today and scanned the headlines, you saw the story: Warren Buffett's Berkshire Hathaway is buying Occidental Petroleum's chemical arm, OxyChem, for $9.7 billion in cash. |
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CNBC will talk about Occidental's debt. Reuters will highlight Berkshire's patience. The AP will call it Buffett's last big deal. |
All true. All incomplete. |
Because the real story isn't in the debt math. It's in what OxyChem actually does. And once you see it, you'll understand why this "boring" business may be one of the most important chess moves Buffett has made in years. |
What Buffett Just Bought |
OxyChem is not a household name. But chances are, you've crossed paths with it more than you realize. |
The chlorine that keeps a backyard swimming pool crystal clear? |
That's OxyChem. And that's just the start. |
Caustic soda and chlorine. These bulk chemicals are the unsung workhorses of the global economy. They treat drinking water. They refine lithium, nickel, and cobalt for batteries. They strip impurities out of rare earths. They show up in paper, plastics, and even in the neutralization steps required for battery recycling.
Vinyls and PVC. The pipes, conduits, and insulation that go into construction and energy infrastructure. Every new data center, every power substation, every housing development — all of them require these materials in bulk.
Water treatment. A less glamorous business, but one that underpins the entire AI buildout. Cooling systems at hyperscale data centers run on millions of gallons of water per day. That water has to be chemically treated to prevent scaling and corrosion. The same chemistry keeps geothermal systems and fracking operations online, and flows through municipal treatment facilities.
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These aren't fringe products. They're the connective tissue of modern industry. |
Buffett isn't buying a "chemical company." He's buying the bottlenecks of electrification, industrial expansion, and AI's insatiable appetite for power, water, and raw materials. When you look at where the world is headed, every road eventually passes through OxyChem's supply chain. |
And this actually hits pretty close to home for me. Nearly one-fifth of my own net worth is tied up in a project riding the very same wave of demand. I've invested directly in a large-scale battery storage development in Finland, near the Arctic Circle. The location isn't random — it has seawater cooling, massive grid connections, and the kind of natural infrastructure AI data centers now require. |
None of it works without the industrial chemical backbone companies like OxyChem provide. When you see firsthand how fast this demand is scaling, it becomes obvious why Buffett just wrote a $9.7 billion check. |
The Story No One Will Tell You |
Most articles will stop with "Buffett buys OxyChem, Occidental cuts debt." |
That misses the point. |
We are standing in the middle of the Fourth Industrial Revolution. Unlike the past three, this one is powered not by coal or oil, but by electrons and computation. Every advance — every data center, every EV, every AI cluster — starts with electricity flowing into a machine, and data flowing out. |
And that revolution doesn't run on hype. It runs on inputs. Electricity. Water. Materials. Bulk chemicals. |
Buffett knows this. He's not chasing shiny tech. He's securing the infrastructure that every shiny tech story must pass through. |
This is classic Buffett: build the moat, not the castle. |
And that's why it matters. Because batteries, water, and data centers aren't side stories. They are the foundation. Each one is capital-intensive. Each one is scaling faster than anyone predicted. And each one now feeds directly back to what Buffett just bought. |
Look around. Every single day, tens of billions of dollars are being poured into this race: |
Land deals for new data centers.
Power hookups, transformers, natural gas plants, renewable capacity.
Battery storage to backstop it all.
Water sourcing and treatment at industrial scale.
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This is the CapEx cycle of our lifetimes. It's the only story in markets that matters right now. And OxyChem is sitting in the slipstream of it. |
If Washington is printing money to back lithium miners, rare earth projects, or data center buildouts, the trail leads straight back to suppliers like OxyChem. |
Just look at what is happening right now. Washington has already written billion-dollar checks to players like Lithium Americas and MP Materials. They are fronting capital, effectively socializing the risk in order to secure supply. |
That is printed money flowing into the ground. And when those projects break rock, the first thing they will need is caustic soda, chlorine, and chemical inputs. In other words, they will need OxyChem. |
Buffett did not just buy a chemical maker. He bought himself a guaranteed seat at the government's spending table. |
And that's why this moment matters. The last time we saw a buildout of this scale was the internet boom of the 1990s. Investors who ignored it watched once-in-a-generation wealth pass them by. This is that kind of window again… Only bigger, because it runs through energy, infrastructure, and AI all at once. |
The Single Most Important Trade of Our Lifetime |
Buffett is locking down the moat. But the engine that drives all of this — the gravitational center — is NVIDIA. |
Because none of this CapEx happens without NVIDIA setting the tempo. NVIDIA decides where the chips go. NVIDIA decides who scales. NVIDIA sits at the tip of the spear in the U.S.–China AI race. |
And every move NVIDIA makes cascades through the system. A new GPU launch triggers another $10 billion in data center buildouts. Stronger guidance pushes crypto miners to flip gigawatts of power from mining to AI. Shifts in AI spending outlooks send utilities back to regulators with bigger capacity plans. |
And every move NVIDIA makes cascades through the system. A new GPU launch triggers another $10 billion in data center buildouts. Stronger guidance pushes crypto miners to flip gigawatts of power from mining to AI. Shifts in AI spending outlooks send utilities back to regulators with bigger capacity plans. |
And yet, nowhere in CNBC's coverage today will you find those dots connected. |
Buffett → OxyChem → AI infrastructure → NVIDIA. |
That's the edge. Not just knowing the news… but knowing the system it feeds. |
We see it. We built an entire framework around it. |
If you haven't yet read my special report, The $100 Billion Backdoor, go here now. |
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It explains how miners, data centers, utilities, and companies like OxyChem are converging into the real "picks and shovels" of AI. You will want that knowledge before the next wave hits. |
And then join me live next week for the NVIDIA 4-D Masterclass and Bootcamp. |
Because the truth is simple. This is the single most important trade of our lifetime. Miss it, and you will look back in ten years with regret. Get it right, and you will look back with generational wealth. |
Buffett just showed you where the money is going. Now, let me show you how to trade it… |
Stay positive, |
Garrett Baldwin |
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Wall Street's quietly re-pricing a whole group of AI infrastructure names.
6x multiples going to 20x — and it's not on CNBC.
Click here to see the names in play before its too late… |
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