Warren Buffett's investing style differs from Carl Icahn's approach.

• Tuesday, Carl Icahn revealed how his investment strategy differs from Warren Buffett's approach on Wall Street.
• In response to a query regarding his choice to dispose of Occidental Petroleum shares, Icahn made his remarks on CNBC.
• Berkshire Hathaway, the conglomerate owned by Buffett, has been accumulating a valuable position worth billions.

In recent weeks, Carl Icahn and Warren Buffett have adopted contrasting strategies regarding shares of .

Icahn had been selling to exit his long equity position, while Buffett's conglomerate has been building a position worth billions.

Icahn's decision to sell Occidental as oil prices rose highlights the differences in investment strategies between him and Buffett.

The founder and chair of Icahn Enterprises stated that it is difficult to disagree with Buffett, as he is widely regarded as the greatest long-term investor of all time, by looking at his impressive record.

Icahn stated, "Although I'm not sure if we completely disagree, I believe we're in a different business with Warren. I'm an activist, and I look for undervalued companies like Southwest Gas, where I can make a difference. That's what motivates me to come to work every day."

Buffett is known for his patience and extended time horizon, while both men may look for undervalued securities. In fact, when we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever, as Buffett wrote in his 1988 letter to Berkshire shareholders, discussing the company starting a position in .

Icahn stated that the positions he constructs are not aimed at maintaining a long-term portfolio.

Icahn stated that he searched for the right time to act and, although he could have earned more money if he had kept the Apples and Netflixes he sold, he made a substantial profit from them.

In 2016, Icahn sold all his Apple shares, while Buffett's Berkshire started investing in the iPhone maker. Since then, it has been one of Buffett's most successful investments, matching the success of his Coca-Cola ownership.

In 2019, Occidental was involved in a bidding war for Anadarko Petroleum, which prompted Icahn to start purchasing shares of the company.

Icahn stated that the company made nearly $2 billion in the stock market and as an activist, he believes they accomplished a commendable task. He also mentioned that he still holds a complex hedge on Occidental.

Icahn stated that he previously owned warrants and shorted stock against it, and also shorted calls against it. He added that this was from his past as an arbitrageur and he enjoys playing with derivatives, making it one of his current investments.

On Tuesday, CNBC reported that Icahn stated he believes a recession or an even more severe economic downturn may occur.