Warren Buffett Stock Portfolio: Top 5 Stock Picks

3. Chevron Corporation (NYSE:CVX)

Value of Berkshire Hathaway‘s 13F Position: $23.8 Billion

Number of Hedge Fund Shareholders: 68

Berkshire Hathaway’s position in Chevron Corporation (NYSE:CVX) was increased by 3% during Q3, with Buffett’s holding company ending the quarter with over 165 million shares. Hedge fund ownership of CVX has risen during five of the past six quarters to hit an all-time high, jumping by over 50% during that period.

Chevron Corporation (NYSE:CVX) is Buffett’s top energy stock pick. The company provides a strong mix of both upstream and downstream assets that allow it to profit heavily when oil and gas prices are high, while insulating it somewhat when they’re not. Chevron’s upstream operations more than doubled its earnings year-over-year during the first nine months of 2022, hitting $24.8 billion. The company has a fortress-like balance sheet and a solid dividend that it’s raised for 35 consecutive years.

The Diamond Hill Long-Short Fund discussed why Chevron Corporation (NYSE:CVX) was one of its top Q1 contributors in the fund’s 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.”