Warren Buffett and Becky Quick at the Berkshire Hathaway Annual Meeting of Stockholders in Omaha, Nebraska on April 29, 2022.
David A Grogan | CNBC
Berkshire Hathaway added to its Chevron bet significantly during the first quarter, making energy shares the conglomerate’s fourth largest shareholding.
The “Oracle of Omaha” investment in Chevron was worth $25.9 billion at the end of March, the company’s first-quarter filing on Saturday showed, a big jump from its value of $4.5 billion at the end of March. 2021.
Chevron shares have risen more than 30% this year thanks to rising oil prices, but Berkshire’s position has increased fivefold as a result of Buffett’s purchases.
Energy has been a notable gainer this year with the S&P 500 energy sector up 35% compared to the broader benchmark’s 13% loss to date.
Many oil and gas companies also generate good income and offer attractive dividends. The energy sector returns 4.7%, compared to the S&P 500’s 1.5% dividend yield. Chevron pays a 3.6% dividend.
Buffett first bought Chevron in the third quarter of 2020.
Chevron isn’t the only energy stock Buffett likes. Last month, the investor bought $7 billion in Western Petroleum‘s common stock in additional investments.
“Together with the $10 billion in preferred OXY, Berkshire’s stake in the oil sector is now over $40 billion,” said James Shanahan, Berkshire analyst at Edward Jones.
Berkshire’s largest holding was still Apple, worth $159 billion at the end of the first quarter. Bank of America and American Express were the other two big holdings, worth $42.6 billion and $28.4 billion, respectively.
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