Invest Like Buffett – Chevron Stock Could Be Your Next Great Move

Warren Buffett
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Warren Buffett’s Berkshire Hathaway has made a $ 1.2 billion gain from its investment in Chevron in less than 10 weeks, Reuters reports. Buffett’s net worth is now $100 billion, according to the Bloomberg Billionaires Index, making him the sixth-wealthiest person in the world.

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Last month, the Oracle of Omaha released Berskhire Hathaway’s stock investments as of December 31, 2020, revealing he had made two new major investment moves with the additions of Chevron and Verizon.

The filings disclosed a $8.6 billion stake in the phone company Verizon Communications and a $4.1 billion stake in oil company Chevron, according to the Securities and Commission filing. 

Since then, Chevron’s stock price has risen 29% as crude oil prices have bounced, increasing Berkshire’s share price to $ 5.3 billion, according to Reuters. 

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According to Buffett’s 2021 annual letter to shareholders released last month, Chevron is one his 15 largest investments. The other ones include AbbVie, American Express, Apple, Bank of America, Bank of New York Mellon, Charter Communications, Coca-Cola, General Motors, Itochu, Merck & Co., Moody’s, U.S. Bancorp and Verizon. 

Berkshire Hathaway earned $42.5 billion in 2020, according to the letter. This includes $21.9 billion of operating earnings, $4.9 billion of realized capital gains, a $26.7 billion gain from an increase in the amount of net unrealized capital gains and an $11 billion loss from a write-down in the value of a few subsidiary and affiliate businesses, according to the letter.

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“As the COVID-19 pandemic accelerated beginning in the second half of March, most of our businesses were negatively affected, with the effects to date ranging from relatively minor to severe,” Buffett said in the letter.

In an interview on CNBC’s “Closing Bell” earlier this week, Chevron CEO Michael Wirth said that while he hadn’t spoken to Buffett since the firm took a stake in the company, “I can’t infer anything other than their investment decision would suggest that there’s some confidence in the long-term future of our company and our ability to generate value for shareholders over the long term.”

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About the Author

Yaël Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.
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