5 Cheap Value Stocks to Buy According to Warren Buffett

3. Chevron Corporation (NYSE:CVX)

Value of Berkshire Hathaway’s 13F Position: $23.757 billion

Number of Hedge Fund Holders: 66

Chevron Corporation (NYSE:CVX) is one of the largest oil and gas companies in the world. After achieving major profitability in the first three quarters of 2022, the company stock has lost 6.6% of its value as of December 21 and is trading at a PE ratio of 10x.

Chevron Corporation (NYSE:CVX) stock has shown a decline after crude oil prices dropped below $77 at the beginning of December. However, according to the US Energy Information Administration, the global oil supply will not be able to meet the global oil demand in 2023. The supply constraints are expected to boost Brent crude oil prices to an average of $95 in 2023. Oil and gas companies like Chevron Corporation (NYSE:CVX) will benefit significantly due to the price increase which is why it is on our list of cheap value stocks to buy according to Warren Buffett.

Chevron Corporation (NYSE:CVX) is a great dividend stock that has offered dividend increases for 35 consecutive years. As of December 21, the company has a dividend yield of 3.3% and a 34.4% payout ratio. 

Berkshire Hathaway held over 165 million shares of Chevron Corporation (NYSE:CVX), valued at $23.757 billion in the third quarter of 2022. The company represented 8.02% of the firm’s portfolio.

Here is what Diamond Hill Capital to say about Chevron Corporation (NYSE:CVX) in its Q1 2022 investor letter:

“Other top contributors in Q1 included multinational energy company Chevron Corp. (NYSE:CVX). The company benefited from increased energy demand as COVID-related economic restrictions eased in tandem with concerns regarding supply interruptions related to Russia’s invasion of Ukraine.”