Berkshire's Oil Portfolio: Should You Follow Abel's Lead?

Berkshire Hathaway, now under CEO Greg Abel after Warren Buffett's handover in early 2026, has made notable changes to its energy portfolio. At the end of the first quarter, Chevron (CVX) made up 6.6% and Occidental Petroleum (OXY) 6.5% of Berkshire's stock portfolio. This marked a reduction from Chevron's previous 7.2% weighting after Berkshire sold approximately 45.7 million shares.

Meanwhile, Oxy's weighting increased from 4% to 6.5% due to a rising stock price, with no new shares bought. Since then, both positions have declined in value, with Chevron now around 5% and Oxy at 4.6% of the portfolio. These shifts reflect the extreme volatility in the energy sector, largely driven by the Middle East conflict.

The article emphasizes that these moves are likely part of normal portfolio management, not a reaction to short-term geopolitical events. Buffett trained Abel, so a dramatic change in investment philosophy is improbable. Abel's preference for Oxy over Chevron aligns with Oxy's more growth-oriented profile.

Warren Buffett originally bought both stocks before the conflict began, indicating a long-term strategic view. The article suggests that the conflict's winding down does not alter the fundamental importance of oil and gas to the economy, supporting Berkshire's continued energy exposure.

In summary, Berkshire Hathaway's portfolio adjustments are subtle and strategic, not a signal to abandon energy stocks. The company is not focused on market timing, and long-term investors should not overreact to these marginal changes.

Berkshire Hathaway is one of the most closely watched investors globally. Its decisions influence market sentiment, especially in the energy sector. The trimming of Chevron and holding of Oxy suggest a preference for growth over integrated exposure, which could impact how other institutions view these stocks.

For energy investors, the key takeaway is that volatility is the norm. The Middle East conflict was a major driver of oil prices, but Berkshire's long-term commitment to oil stocks implies that these investments are not just about short-term geopolitical events. The sector remains crucial for global energy security, and demand for oil and gas is expected to persist for decades.

From a competitive standpoint, Chevron's integrated model offers stability, while Oxy's focus on production provides upside potential. Berkshire's slight tilt toward Oxy may signal confidence in its growth trajectory, especially given its carbon capture initiatives and Permian Basin assets.

Looking ahead, the portfolio changes are unlikely to lead to a complete exit from energy. Instead, they reflect a dynamic management approach that adjusts weighting without abandoning the sector. For individual investors, this suggests that maintaining some energy exposure is reasonable, but should be done with a long-term horizon.