BRK.A Bought 9.4 million CVX Shares…

“Warren Buffett’s Berkshire Hathaway bought about 9.4 million shares of Chevron in the quarter, boosting its stake to 38 million.”

“The 9.4 million shares were worth $1.28 billion as of Monday’s close, and the 38 million were worth $5.2 billion.”

I personally like to see BRK.A purchasing billions of dollars of Big Oil.

ESG has ensured the industry remains largely starved of capital, and highly regulated.

Enormous regulatory moat, constrained CapEx that ironically increases share performance, no new competitors of any meaningful scale, fighting a perpetual decline curve for the oily resource that increases its sales price, and a terminal value that is well above zero as far out as 2050+.

Few industries offer such physics induced line of site to return.

W.E.B. highly boring as usual, letting the cold hard math do the talking.

Anyone can be an excellent oil analyst, so long as they are good with large units of measure.


It might be an unpopular decision in some circles, but I wouldn’t lose too much sleep over that.
I think most people realize it’s an industry that has to be around for quite a while yet.

It looks like Berkshire is probably doing well on the position, at the moment.
The new Q4 purchases were probably done at prices under $117 (guessing prices no worse than median to 80th percentile during the quarter).
The current price is up about 17% from that.
The old stake cost about $83 per share. Current price is up about 65% on that, not counting dividends.
Dividend yield still over 4% at current prices.

The odd bit is why 19.8m Chevron shares were (IIRC) sold in Q3 and then these, half that amount, bought back in Q4 probably at a slightly higher price.
Different portfolio managers I guess?