Warren Buffett and Becky Quick at the Berkshire Hathaway Annual Meeting of Shareholders in Omaha, Nebraska on April 29, 2022.
David A. Grogan | CNBC
Berkshire Hathaway significantly increased its Chevron bet during the first quarter, making the energy stock the conglomerate’s fourth-largest stock portfolio.
Chevron’s ‘Oracle of Omaha’ investment was worth $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. at the end of 2021.
Shares of Chevron have risen more than 30% this year due to soaring oil prices, but Berkshire’s position has increased fivefold, reflecting Buffett’s buying.
Energy has been a big winner this year with the S&P 500 energy sector up 35% compared to the broader benchmark’s 13% loss year to date.
Many oil and gas companies are also good earners, offering attractive dividends. The energy sector returns 4.7%, compared to 1.5% for the S&P 500. Chevron pays a dividend of 3.6%.
Buffett first bought Chevron in the third quarter of 2020.
Chevron isn’t the only energy stock Buffett likes. Last month, the investor purchased $7 billion worth of Occidental Petroleum common stock as part of additional investments.
“With OXY’s preferred $10 billion bet, Berkshire’s bet on the oil sector is now over $40 billion,” said James Shanahan, Berkshire analyst at Edward Jones.
Berkshire’s biggest stake was still Apple, worth $159 billion at the end of the first quarter. Bank of America and American Express were the other two major holdings, worth $42.6 billion and $28.4 billion respectively.
Check out all the coverage from CNBC’s Berkshire Hathaway Annual Meeting here.
Warren Buffett dramatically raises Chevron bet, now in Berkshire’s top 4 positions
Source link Warren Buffett dramatically raises Chevron bet, now in Berkshire’s top 4 positions