Warren Buffett’s Berkshire Hathaway Makes $ 1.2 Billion Gain On Chevron In Less Than 10 Weeks

Warren Buffett’s Berkshire Hathaway racked up a $ 1.2 billion gain on his Chevron investment in less than 10 weeks.

The investor’s famous company had a 2.5% stake in the $ 4.1 billion oil and gas group at the end of December, it revealed in a regulatory filing last month. Chevron’s share price has risen 29% since then as crude prices have rebounded, bringing the value of Berkshire’s stake to $ 5.3 billion.

Berkshire began buying Chevron stock in the third quarter of 2020. It got regulatory clearance not to include the stock in its 13-F portfolio update for this period as it was still building. the position.

The company bought 44.3 million Chevron shares in the third quarter and an additional 4.2 million shares in the last quarter, it revealed in documents filed last month. Energy stock ranked among its 10 largest holdings in terms of market value at the end of 2020, Buffett said in his latest letter to shareholders.

Buffett’s decision to back Chevron is paying off so far, but it’s still somewhat surprising. After all, Buffett expressed doubts about the outlook for the oil industry at Berkshire’s annual meeting last year, following his painful bet on Occidental Petroleum.

“If you are a shareholder of Oxy, or any other shareholder of an oil producing company, you will join me in making a mistake so far in the direction of the price of oil”, a- he declared. “Who knows where they will go in the future?”

Buffett also stepped in to help the West beat Chevron in a bidding war for Anadarko Petroleum in 2019. His subsequent bet on Chevron suggests there is no more bad blood left from the clash.