10 Best Stocks to Buy According to Billionaire Warren Buffett

5. Chevron Corp (NYSE:CVX)

Portion of portfolio: 6.43%

Value of holdings: $17,179,549,745

Chevron Corp (NYSE:CVX) is an American multinational energy corporation with exploration, production and refining operations worldwide, predominantly specializing in oil and gas. The company currently sits as the fifth-largest portfolio holding in Berkshire’s portfolio of publicly-held stocks.

Buffett kept his investment in Chevron Corporation during the quarter holding 118,610,534 of its shares.

The company, which is one of the best Warren Buffett stocks to buy according to analysts, maintained a strong financial position in fiscal 2024, generating $31.5 billion in operating cash flow and $15 billion in free cash flow. The company returned nearly $12 billion to shareholders through dividends and repurchased over $15 billion in shares. Chevron’s revenue jumped by 10.7% year-over-year to $52.23 billion in the fourth quarter of 2024, beating market expectations by over $3.8 billion due to increasing its worldwide and US production by 7% and 19% respectively to record levels in 2024.

Chevron acquired approximately 4.99% of Hess Corp’s common shares this year, demonstrating its confidence in finalizing the planned acquisition of Hess, according to a March regulatory filing by the oil giant. The company agreed in October 2023 to buy Hess in an all-stock deal valued at $53 billion thus gaining a substantial stake in Guyana’s oil-rich Stabroek block, reported Reuters.

However, Exxon Mobil and CNOOC, which are partners with Hess in Guyana, have taken the matter to court. The case is scheduled for a review by a three-judge arbitration panel in May.

Chevron is also exploring the acquisition of Phillips 66’s stake in their chemicals JV, CPChem, with CEO Mike Wirth seeing strong demand growth in chemicals due to global middle-class expansion and the need for energy-efficient plastics.

The oil giant recently revealed plans to cut up to 20% of its workforce in an attempt to streamline operations and position itself for “long-term competitiveness,” Chevron Corporation Vice Chairman Mark Nelson said. The move is in line with Chevron’s previously announced wider cost-cutting effort “of $2 to $3 billion in targeted structural cost reductions by the end of 2026, with some residual impact in 2027 and beyond.”

Year-to-date the company’s stock lost 4.06% in its value, closing at $138.96 per share on April 24 at the time of writing.