Before Retiring, Warren Buffett Made a $58 Billion-Plus Bet on One Sector. Now, That Investment Is Starting to Work.

Warren Buffett may no longer be the chief executive officer of Berkshire Hathaway, but the legendary investor isn't soon to be forgotten, considering his six decades at the helm of the company and all the wonderful lessons he taught people day in and day out. Additionally, many of Buffett's investments and decisions at Berkshire are likely to endure for many decades, given Berkshire's philosophy of finding stocks it can hold forever.

Before retiring, Buffett and the Berkshire team plowed at least $58 billion into one sector, which is now starting to play out. Let's take a look.

Image source: The Motley Fool.

Buffett and Berkshire bought the dip in oil

Since the pandemic, Berkshire has plowed into oil and gas in several ways. The company has purchased large stakes in stocks in the sector and beefed up Berkshire Hathaway Energy through several acquisitions, as noted below:

• Berkshire built its position in Chevron (NYSE: CVX) to nearly $21 billion, as of this writing. It's the fifth-largest position in Berkshire's equities portfolio, representing a roughly 6% stake in the company.
• Berkshire built its position in Occidental Petroleum (NYSE: OXY) to nearly $12 billion, as of this writing. It's the sixth-largest position in Berkshire's equities portfolio, representing a roughly 27% stake in the company.
• In 2020, Berkshire Hathaway acquired the natural gas and storage assets of Dominion Energy in a deal that totaled nearly $10 billion when you factor in the assumption of debt.
• In July 2023, Berkshire Hathaway Energy spent $3.3 billion to buy a 50% stake in the Cove Point liquefied natural gas facility that was owned by Dominion Energy.
• In October 2024, Berkshire Hathaway paid nearly $2.4 billion to acquire the remaining 8% of Berkshire Hathaway Energy it didn't already own.
• In 2025, Berkshire acquired Occidental Petroleum's petrochemical division, OxyChem, for about $9.7 billion in cash. The unit manufactures water treatment, healthcare, and other commercial chemicals.

All these investments total about $58 billion, though the Chevron and Occidental stakes can obviously change in value quickly. These moves are significant, considering Berkshire has not been a big buyer of stocks in recent years and has conducted very few share repurchases, instead opting to build a mountain of cash.

Berkshire is clearly very bullish on oil and energy assets, even as oil has not been a good investment in recent years.

The long thesis on oil

While hardly anyone will truly understand how Buffett and his team view markets, these moves indicate that Berkshire believes oil and gas are here to stay. Many have been bearish on fossil fuels, given global warming and the ensuing shift to renewable energy. But after a tough year for oil, crude futures have risen by more 14% this year, as of this writing.

This is mainly due to geopolitical issues such as President Donald Trump's stunning removal of Venezuelan President Nicolás Maduro and tensions with Iran, as well as a huge winter storm that slammed the U.S. and resulted in oil production shortages.

However, shifting to renewable energy sources, which is clearly not a priority under Trump's administration, could take time. Furthermore, given the surge in artificial intelligence, which is incredibly data-intensive, it appears the world will need all the energy it can get its hands on, whether from renewable energy sources, fossil fuels, or newer emerging power sources such as nuclear and hydro.

According to a 2023 report from the U.S. Energy Information Administration's (EIA) International Energy Outlook, there was enough crude oil, liquid hydrocarbons, and biofuels to meet the global demand for liquid fuel through 2050. The report also notes that there is "substantial uncertainty" about future demand and supply for liquid fuels. Furthermore, EIA also said global reserves will probably increase as new technologies emerge.

Still, 2050 isn't that far away, and oil is a finite resource that could serve as a unique portfolio diversifier, especially as investors worry about a weak U.S. dollar. Berkshire seems to have spotted this trend early and bulked up in the sector.

Bram Berkowitz 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.