4 Ways to Learn from Warren Buffett’s Energy Investments in 2025

Warren Buffett, the legendary investor and chairman of Berkshire Hathaway, has built a reputation for long-term, strategic investing. While Berkshire is best known for its stakes in Apple, Coca-Cola and major financial institutions, Buffett has also made billion bets in the energy sector with investments both in traditional oil companies and renewable power.

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His portfolio includes major holdings in Chevron and Occidental Petroleum, but through Berkshire Hathaway Energy (BHE), he also has bullish investments in renewable energy projects. This balanced approach offers key lessons for investors navigating today’s evolving energy landscape.

Here’s what he invests in and what you can take away from his portfolio.

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Buffet’s Key Energy Holdings

Buffett’s energy portfolio balances traditional oil investments with renewable power for long-term stability and growth.

• Chevron (CVX) – A major integrated oil company providing strong cash flow and a 4.38% dividend yield.

• Occidental Petroleum (OXY) – Berkshire owns 28.3% of OXY, betting on long-term oil demand and cash flow strength.

• Berkshire Hathaway Energy (BHE) – BHE is a major energy subsidiary of Berkshire Hathaway with $40 billion+ in renewable investments, including PacifiCorp, MidAmerican Energy, and NV Energy, which provide wind, solar, and hydropower to millions across the U.S. and U.K.

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Key Takeaways From Buffet’s Energy Holdings

Lesson 1: Invest in Established Companies with Strong Fundamentals

In 2023, Chevron reported total assets of $239.8 billion and sales and other operating revenues of $246.3 billion. Despite a 40% decrease in net income compared to the previous year, the company returned a record $26.3 billion to shareholders through dividends and share repurchases. As one of the world’s largest integrated energy companies, Chevron’s diversified operations contribute to its resilience and long-term stability. ​

Occidental has focused on strengthening its balance sheet, repaying $4 billion in debt, and achieving approximately 90% of its short-term debt reduction target by the third quarter of 2024. The company reported adjusted income attributable to common stockholders of $977 million, or $1.00 per diluted share, for the same period. ​Buffett’s confidence in Occidental is evident, considering Berkshire Hathaway owns a 28.3% stake in the company, according to a recent report by CNBC.

Lesson 2: Prioritize Dividends and Cash Flow Stability

Warren Buffett values dividends and stable cash flows in his investment strategy. At a 2008 Berkshire Hathaway conference, he famously stated, “I do believe in dividends in a great many situations, including many of the ones at companies in which we own stock,” emphasizing their role in his long-term approach.

Chevron is a strong example of this approach. As of February 2025, Chevron’s dividend yield stands at 4.38%, with an annual dividend of $6.84 per share. This consistent and substantial dividend payout makes Chevron attractive to long-term investors seeking reliable income streams.​

Occidental Petroleum, while offering a lower dividend yield of 2.0%, remains attractive due to its robust cash flow generation. The company has consistently demonstrated its ability to generate strong cash flow, which supports its capital return to shareholders, debt reduction, and reinvestment into the company to ensure long-term stability.

Lesson 3: Balance Traditional and Emerging Energy Investments

Buffett isn’t choosing one side of the energy game — he’s investing where the money is. His portfolio leans heavily on oil and gas, with major stakes in Chevron and Occidental Petroleum, but Berkshire Hathaway Energy (BHE) has committed over $40 billion to wind, solar and hydroelectric projects. The company operates one of the largest renewable energy portfolios in the U.S.

The lesson here is that Buffett isn’t betting on one energy source; he’s hedging both sides, knowing that while fossil fuels remain essential, renewables will continue growing. Investors can take a similar approach by diversifying oil companies with long-term growth in renewables.

Lesson 4: Be Patient and Think Long-Term

Buffett doesn’t chase short-term trends. As a value investor, he follows a long-term approach. One of his most well-known quotes states, “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.”

His energy investments are proof of that mindset. Berkshire Hathaway started buying Occidental Petroleum shares in 2019 and kept adding to its position through 2022 and 2023, even as oil prices swung up and down. Today, Berkshire owns 28.3% of Occidental, making it one of its largest holdings. Rather than timing short-term price swings, Buffett maintains ownership in energy companies he believes will remain profitable for years to come.

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