2 No-Brainer Warren Buffett Stocks to Buy Right Now

Warren Buffett's company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), has invested in dozens of stocks. Its portfolio is currently worth over $278 billion.

Two of those stocks stand out as no-brainer buys right now: Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY). The oil stocks currently trade at lower valuations. With several upside catalysts ahead, they look very attractive these days.

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Buffett's oil trade

Berkshire Hathaway has made a pretty outsized bet on the oil market. Buffett's company holds 6.8% of Chevron's outstanding shares and 26.9% of Occidental's stock. Those positions are worth $17.7 billion and $12.2 billion, respectively. They are Berkshire's fifth and sixth largest holdings at 6.3% and 4.4% of its investment portfolio.

Buffett's company invested in these oil stocks because they provided Berkshire's portfolio with upside exposure to oil prices. Unfortunately, that trade hasn't panned out over the past year as oil has declined, weighing on the value of these oil stocks:

CVX data by YCharts.

It's anyone's guess where oil prices will go next. The Trump administration's tariff plan was the big downside catalyst in crude prices earlier this year. The market feared the initially high rates would slow the global economy and decrease oil demand. However, with tariff pauses and trade deals, the impact likely won't be as bad as feared.

Meanwhile, supplies could become an issue given the escalating conflicts in the Middle East and between Ukraine and Russia. Crude prices could soar if tensions continue to rise and attacks spread to oil infrastructure.

Non-oil upside catalysts

Crude prices will continue to play a major role in the performance of oil stocks like Chevron and Occidental. However, both companies have major potential upside catalysts unrelated to oil prices.

We'll start with Chevron. The oil giant has completed several major projects recently, including the Future Growth Project in Kazakhstan and Ballymore in the Gulf of Mexico (also known as the Gulf of America in the U.S.). These and other initiatives position Chevron to generate an incremental $9 billion in free cash flow in 2026 at $60 per barrel of oil (crude is currently around $75 per barrel). That will give Chevron more money to return to shareholders via dividend increases (it has raised its payment for 38 straight years and at a peer-leading rate over the past decade) and share repurchases (it's targeting $10 billion to $20 billion annually).

On top of that, Chevron is working to close its needle-moving acquisition of Hess. That transaction, which is currently on hold due to an arbitration dispute with ExxonMobil, would enhance and extend Chevron's growth outlook into the 2030s. The oil company is also working to grow its lower-carbon energy businesses, including recently joining Exxon by investing in lithium.

Turning to Occidental Petroleum, the oil and gas giant expects a sizable free-cash-flow boost starting next year from sources unrelated to crude prices. A combination of chemical expansion projects, midstream contract expirations, and lower interest expenses from debt reduction will add $1 billion to its bottom line in 2026, rising to $1.5 billion in 2027.

In addition, Occidental is growing its lower-carbon energy platform. The company is in the process of commissioning its Stratos Direct Air Capture facility in Texas. The carbon capture and sequestration project will extract carbon dioxide from the air and inject it underground for permanent storage. It has been commercializing the facility by selling carbon credits to customers desiring to lower their carbon footprint. Completing the project and ramping it to full capacity will showcase that the company has a viable new growth platform.

Multiple catalysts could fuel these oil stocks

While shares of Chevron and Occidental have fallen with oil prices over the past year, they appear poised to rally. Both expect to generate significantly more free cash flow in 2026 even if oil prices don't recover. On top of that, they have other upside catalysts unrelated to a rebound in the oil market. Add the possibility that oil prices bounce back, and they look like no-brainer Buffett stocks to buy right now.

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Matt DiLallo has positions in Berkshire Hathaway and Chevron. 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.