Warren Buffett’s 2023 Portfolio: Top 5 Stock Picks

In this article, we discuss the top 5 stock picks from Warren Buffett’s latest portfolio. If you want to read our discussion on Buffett’s recent investment decisions, go directly to Warren Buffett’s 2023 Portfolio: Top 15 Stock Picks.

5. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 57

Warren Buffett’s Berkshire Hathaway’s Holdings: $21,603,623,200

Percentage of Warren Buffett’s Berkshire Hathaway’s Portfolio: 6.64%

On April 28, Chevron Corporation (NYSE:CVX) announced that it intends to buy back $4.38 billion worth of stock during Q2 2023. The announcement was made during the Q1 2023 results. The company distributed $6.6 billion to shareholders through dividends and share buybacks in Q1 2023. Furthermore, Chevron Corporation (NYSE:CVX) increased its annual share buyback target by 6% to $17.5 billion for 2023. Warren Buffett is expected to receive $1 billion in dividends from his investment in the oil major as Chevron Corporation (NYSE:CVX) plans to increase its dividend for the 36^th consecutive year.

Here’s what Madison Funds said about Chevron Corporation (NYSE:CVX) in its Q4 2022 investor letter:

“This quarter we are highlighting Chevron Corporation (NYSE:CVX) as a relative yield example in the Energy sector. CVX is a leading integrated oil company with exploration, production, and refining operations. It is the second largest oil company in the United States with more than 70% of production volumes from oil and liquid-linked natural gas. We believe it has a sustainable competitive advantage due to its scale and low-cost position. It has a large acreage position in the Permian Basin, which is a high-quality oil field. CVX was an early mover in the Permian and did not overpay to enter the oilfield; 75% of its position has a no or low royalty rate, which gives it a cost advantage over competitors.

Our thesis is that free cash flow growth per share is expected to accelerate due to disciplined capital spending, rising Permian production volumes, and stock repurchases. The company has also made important investments in low-carbon areas like greenhouse gas reduction, carbon capture, hydrogen, and renewable fuels which we believe will pay off later in the decade as the world transitions more to renewable energy sources…” (Click here to read the full text)