Berkshire Hathaway significantly increased its Chevron bet in the first quarter, making the energy stock the conglomerate’s fourth-largest holding.
The “Oracle of Omaha’s” Chevron investment was valued at $25.9 billion at the end of March, the company’s first-quarter filing showed on Saturday, a big jump from its $4.5 billion valuation dollars at the end of 2021.
Chevron’s stock is up more than 30% this year on the back of soaring oil prices, but Berkshire’s position has quintupled, reflecting Buffett’s purchase.
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Energy has been a standout winner this year, with the energy sector of the S&P 500 up 35% compared to the broader benchmark’s 13% loss so far.
Many oil and gas companies are also good income generators and offer attractive dividends. The energy sector yields 4.7%, compared to the S&P 500’s 1.5% dividend yield. Chevron pays a dividend of 3.6%.
Buffett first bought Chevron in the third quarter of 2020.
Warren Buffett and Becky Quick at the Berkshire Hathaway annual meeting in Omaha, Nebraska, April 29, 2022.
David A Grogan | CNBC
Chevron isn’t the only energy stock Buffett likes. Last month, the investor bought $7 billion of Occidental Petroleum common stock as an additional investment.
“Combined with the $10 billion in OXY preferences, Berkshire’s bet on the oil sector is now over $40 billion,” said James Shanahan, a Berkshire analyst at Edward Jones.
Berkshire’s largest holding remained Apple, which was valued at $159 billion at the end of the first quarter. Bank of America and American Express were the other two big holdings, valued at $42.6 billion and $28.4 billion, respectively.
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