Chalk it up to a rare legal misstep for Berkshire Hathaway, as the PIK language in the Preferred Dividend to Occidental Petroleum Corporation (“OXY”) was amended to specify payment can be paid in “Kandy”. Facing a cash crunch due to declining oil prices, OXY exercised the PIK on the last dividend payment date.
In a rare stroke of genius for OXY CEO Hollub, the company bought shares in Werther’s parent August Storck KG, predicting correctly that the aged Buffett and Munger would go for the caramel delight. The company stock has skyrocketed as shortages for the candy have driven up prices. Katie Mehnert, CEO of Pink Petro and steadfast supporter of Hollub commented, “While she may have driven a 100-year company to the brink of bankruptcy with the heroic acquisition of Anadarko last year, her ability to pull one over on the legendary investors shows that it was likely the males in the Oxy organization that made all of the mistakes.”
The billionaries seem unperturbed by the situation at the annual meeting. When pressed, Buffett observed that it seems like a good deal to him, and then offered everyone in the audience one from the glass bowl at his side.