Warren Buffett Bought 8 Million Shares of This Oil Giant and $100 Oil Proves Him Right
Berkshire Hathaway (BRKB +0.11%) disclosed in a 13F SEC filing that it purchased 8,091,570 shares of Chevron during Q4 2025. With WTI crude now hovering just under $100 a barrel, that bet is looking prescient.
What Berkshire Actually Bought
The Q4 2025 purchase brought Berkshire’s total Chevron (CVX +0.12%) stake to approximately 130 million shares, making CVX 7.24% of Berkshire’s entire equity portfolio and one of its top five holdings. Berkshire also holds a large stake in Occidental Petroleum (OXY +1.90%), and in January 2026, closed its acquisition of OxyChem from Occidental, deepening its energy exposure further.
This is not a passive position. Berkshire has been building energy exposure while trimming elsewhere, including reducing its Apple stake. The CVX addition signals continued conviction, not portfolio drift.
Image source: Getty Images
The Underlying Thesis
A good energy thesis today rests on three pillars: operational scale, shareholder returns, and oil price optionality. Chevron delivered on all three in 2025 despite a difficult pricing environment. The company posted record full-year production of 3,723 MBOE/d, up 12% year-over-year, hit its Permian Basin target of 1 million BOE per day, and generated record full-year operating cash flow of $33.9 billion. It returned $27.1 billion to shareholders and raised its quarterly dividend to $1.78 per share, the 39th consecutive annual raise. All of that happened when Brent averaged just $64 per barrel in Q4.
Now Brent more of less sits at $100. The operational leverage built at $64 oil looks substantially more valuable today. Chevron’s cost reduction program adds to that: $1.5 billion in structural savings achieved in 2025, with a target of $3 to $4 billion by end of 2026.
Today’s Change
(0.12%) $0.24
Current Price
$201.68
Key Data Points
Market Cap
$402B
Day’s Range
$201.21 – $205.06
52wk Range
$132.04 – $205.06
Volume
592K
Avg Vol
12M
Gross Margin
14.66%
Dividend Yield
3.43%
Occidental reinforces the thesis from a different angle. The OxyChem sale to Berkshire closed January 2, 2026, enabling OXY to cut its principal debt by $5.8 billion, bringing it to $15 billion.
How the Position Looks Today
CVX has returned over 26% year-to-date, showing that once again Buffett’s insights before he stepped down as CEO were ahead of the curve. On top of that, the stock still yields 3.6% with a remarkable run of unbroken dividend growth.
Occidental Petroleum
Today’s Change
(1.90%) $1.13
Current Price
$60.71
Key Data Points
Market Cap
$59B
Day’s Range
$59.63 – $61.37
52wk Range
$34.78 – $61.37
Volume
25M
Avg Vol
14M
Gross Margin
31.94%
Dividend Yield
1.64%
If oil holds near $100, Chevron’s free cash flow generation and dividend coverage metrics only improve materially. If oil retreats, the 39-year dividend track record and $3 to $4 billion cost reduction target have historically supported the stock. And, recall that it performed well with oil in the $60’s already. Whether the Iran conflict goes on longer than expected or not, Chevron has the set up to continue delivering for investors. It’s just a matter of how much.
Austin Smith has positions in Berkshire Hathaway. 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.