Why Did Warren Buffett Significantly Increase His Stake in Chevron? – ValueWalk Premium
Berkshire Hathaway Warren Buffett

Why Did Warren Buffett Significantly Increase His Stake in Chevron?

The post was originally published here.

When Warren Buffett acts, the world listens

Download the full report as a PDF

Buffett bucks the woke ESG agenda and overweight’s this dirty industry

  • In the S&P500, the Energy sector makes up just 3.7%
  • Buffett place a heavy bet on Energy
    • The investment in Chevron and Occidental add up to around 10% of his portfolio
    • This represents an Energy overallocation of 6.3%

Investing in Chevron means betting on rising oil prices

  • There has been a 91% correlation between Chevron’s stock price and crude oil price over the past year
  • Hence predicting the oil price will help to estimate Chevron’s revenue

How does the consensus assess Chevron?

  • Analysts equally divided between BUY and HOLD
  • In the past few months, analysts constantly increased their target price estimate in response to oil price shocks

Download the full report as a PDF

Article by Andrew Stotz, Become a Better Investor.


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