Berkshire Hathaway has 9% of its Portfolio in These Oil Stocks. Should it Sell Now That the War With Iran is Winding Down?

Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) saw a major change at the start of 2026, when longtime CEO Warren Buffett handed the reins to Greg Abel. There are likely to be some shifts in the way the company manages its stock portfolio, but don't expect a dramatic change in direction. Still, what is going on with Berkshire's energy exposure as the geopolitical conflict in the Middle East appears to be winding down?

There have been some notable changes

Berkshire Hathaway has two major energy investments, Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY). Chevron is one of the world's largest energy companies, operating a globally diversified integrated energy business. Oxy is a large energy company focused on oil and natural gas production. It is more growth-oriented than Chevron.

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At the end of the first quarter, Berkshire Hathaway's 13F filing, which lists its investments, showed that Chevron accounted for roughly 6.6% of the company's portfolio, with Oxy close behind at 6.5%. There was a notable change made between the most recent 13F and the last one, in that roughly 45.7 million shares of Chevron were sold.

The sale of Chevron stock reduced the position from 7.2% of the portfolio to the 6.6% shown. No new Oxy shares were purchased, but its portfolio weighting rose from roughly 4% at the time of the last filing. Essentially, Oxy's stock price rose. But, since that time, assuming no change to the portfolio, both positions have declined as the shares of Chevron and Oxy have fallen. As of this writing, Chevron is around 5% of the portfolio while Oxy sits at 4.6%.

Using percentages masks the true scale of what amounts to billion-dollar changes. However, the key takeaway here is the change between the last holdings update and the current valuation for Chevron and Oxy. It highlights the extreme volatility in the energy sector. That volatility is directly attributable to the geopolitical conflict in the Middle East today, but volatility is really the norm for the sector.

Should Berkshire Hathaway sell Chevron and Oxy?

Warren Buffett bought Chevron and Oxy, not the current CEO, Greg Abel. However, Buffett trained Abel in his investment approach, and it is unlikely that Abel will suddenly make dramatic changes. However, Abel has already trimmed some of the Chevron stake, effectively leaning into more growth-oriented Oxy as an energy investment. That's not a surprise, but it is also not an indication that either stock is about to be jettisoned from the portfolio.

In fact, even as the conflict in the Middle East begins to wind down, it has shown just how important oil and natural gas are to the world economy. That's likely why the two stocks are in the portfolio to begin with, since they were acquired before the conflict began. These investments were not an attempt to time the short-term price movements of oil and natural gas.

While Abel may make changes at the margins, it seems unlikely that his view of oil and natural gas will materially change at this point. Indeed, most investors should probably have some energy exposure in their portfolio. So the really big question that Abel has to answer is about the strategic, long-term purpose of Chevron and Oxy. The conflict in the Middle East should have very little impact on the long-term logic of either investment.

Berkshire Hathaway isn't a market timer

Berkshire Hathaway wasn't focused on market timing under Warren Buffett, and it won't likely become a market timer under Greg Abel. Trying to buy and sell energy stocks around a short-term geopolitical conflict is basically market timing. Most investors should avoid market timing because it is difficult, if not impossible, to do successfully on a regular basis. In other words, even if Berkshire Hathaway makes changes to its Chevron and Oxy positions, it will likely be for long-term strategic reasons, not because of any short-term impact from the Middle East conflict.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway and Chevron. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.