Warren Buffett Bought 8 Million Shares of This Oil Giant and $100 Oil Proves Him Right
Key Points
Berkshire lifted its Chevron position to roughly 130 million shares, making CVX a top-five holding while it also maintained significant exposure to Occidental.
Chevron’s record production, long dividend-growth streak, and ongoing cost-reduction targets frame the bull case for stronger cash flow at higher oil prices and resilience if crude cools.
- 10 stocks we like better than Berkshire Hathaway ›
Berkshire Hathaway (NYSE: BRKB) disclosed in a 13F SEC filing that it purchased 8,091,570 shares of Chevron during Q4 2025. With WTI crude now hovering just under $100 a barrel, that bet is looking prescient.
What Berkshire Actually Bought
The Q4 2025 purchase brought Berkshire's total Chevron (NYSE: CVX) stake to approximately 130 million shares, making CVX 7.24% of Berkshire's entire equity portfolio and one of its top five holdings. Berkshire also holds a large stake in Occidental Petroleum (NYSE: OXY), and in January 2026, closed its acquisition of OxyChem from Occidental, deepening its energy exposure further.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
This is not a passive position. Berkshire has been building energy exposure while trimming elsewhere, including reducing its Apple stake. The CVX addition signals continued conviction, not portfolio drift.
Image source: Getty Images
The Underlying Thesis
A good energy thesis today rests on three pillars: operational scale, shareholder returns, and oil price optionality. Chevron delivered on all three in 2025 despite a difficult pricing environment. The company posted record full-year production of 3,723 MBOE/d, up 12% year-over-year, hit its Permian Basin target of 1 million BOE per day, and generated record full-year operating cash flow of $33.9 billion. It returned $27.1 billion to shareholders and raised its quarterly dividend to $1.78 per share, the 39th consecutive annual raise. All of that happened when Brent averaged just $64 per barrel in Q4.
Now Brent more of less sits at $100. The operational leverage built at $64 oil looks substantially more valuable today. Chevron's cost reduction program adds to that: $1.5 billion in structural savings achieved in 2025, with a target of $3 to $4 billion by end of 2026.
Occidental reinforces the thesis from a different angle. The OxyChem sale to Berkshire closed January 2, 2026, enabling OXY to cut its principal debt by $5.8 billion, bringing it to $15 billion.
How the Position Looks Today
CVX has returned over 26% year-to-date, showing that once again Buffett's insights before he stepped down as CEO were ahead of the curve. On top of that, the stock still yields 3.6% with a remarkable run of unbroken dividend growth.
If oil holds near $100, Chevron's free cash flow generation and dividend coverage metrics only improve materially. If oil retreats, the 39-year dividend track record and $3 to $4 billion cost reduction target have historically supported the stock. And, recall that it performed well with oil in the $60's already. Whether the Iran conflict goes on longer than expected or not, Chevron has the set up to continue delivering for investors. It's just a matter of how much.
Should you buy stock in Berkshire Hathaway right now?
Before you buy stock in Berkshire Hathaway, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $494,747!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,094,668!*
Now, it’s worth noting Stock Advisor’s total average return is 911% — a market-crushing outperformance compared to 186% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of March 20, 2026.
Austin Smith has positions in Berkshire Hathaway. 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.
Recommended Articles
