Warren Buffett Made a $19.8 Billion Bet and It's Not on AI

In his last quarter as CEO of Berkshire Hathaway (NYSE: BRKB), legendary investor Warren Buffett made one very large buy.

But he didn't buy shares of his largest position Apple (NASDAQ: AAPL), or his longtime holding Bank of America (NYSE: BAC), or one of his other artificial intelligence (AI) picks, Amazon (NASDAQ: AMZN). In fact, he sold more that 7 million shares of each of those.

And instead of putting the money into another AI company, he picked up more than 8 million shares of a different company in one of his longtime favorite industries: oil. Here's how Buffett made one of his last plays into one of his best.

Image source: The Motley Fool.

Buffett's bad buy?

Buffett's surprise investment was in oil major Chevron (NYSE: CVX). He spent more than $1 billion to bring Berkshire Hathaway's total position in Chevron up to $19.8 billion.

This was a bold move for Buffett, because even though he's no stranger to investments in oil and gas companies, Chevron's share price lagged the performance of the S&P 500 by more than 10% in 2025, so it wasn't looking like a surefire winner. But Buffett likes a bargain, so he picked up shares for an average price of about $132 a share.

Image source: Getty Images.

Buffett's brilliant buy

Of course, even the "Oracle of Omaha" couldn't have known in late 2025 what was on the horizon in the oil and gas industry in 2026, but the timing certainly seems to have worked out for him.

First, the capture of Venezuelan president Nicolas Maduro in January may have opened up new long-term opportunities in Venezuela for Chevron. Most oil producers aren't expecting much of an impact on their finances, considering they have no current operations in Venezuela and no plans to begin any. Chevron, though, is the exception, as the lone U.S. oil major actively drilling for oil in the country. Of course, the situation in Venezuela is still new and unpredictable, but if any company were to benefit, it would be Chevron.

What's really caused Chevron's stock to rise, though, are the skyrocketing global energy prices due to the closure of the Strait of Hormuz by Iran. With crude oil prices soaring, Chevron's stock price is now up 37% year to date, at $209 per share. That handily beats the S&P 500, which is down 4.8% so far in 2026:

That means Berkshire has already seen a 58% return on its latest Chevron investment... in less than six months. It's one final masterstroke by a master investor: a bold Buffett move that paid off, and will likely continue to pay dividends (both literally and figuratively) in years to come.

Bank of America is an advertising partner of Motley Fool Money. John Bromels has positions in Amazon, Apple, and Berkshire Hathaway. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, and Chevron and is short shares of Apple. The Motley Fool recommends Occidental Petroleum and Phillips 66. The Motley Fool has a disclosure policy.