Warren Buffett’s Latest Moves: Apple, Chevron, and Occidental Petroleum


Warren Buffett, often regarded as one of the greatest investors of all time, is known for his long-term investment strategies and value-oriented approach. In the second quarter of this year, Buffett’s Berkshire Hathaway made some significant stock purchases, including Apple Inc. (AAPL), Chevron Corporation (CVX), and Occidental Petroleum Corporation (OXY). Let’s dive into these moves and the rationale behind them.

Apple Inc. (AAPL): Warren Buffett has been a staunch supporter of Apple for quite some time. In Q2 2021, Berkshire Hathaway increased its stake in the tech giant, adding about 6 million more shares. This investment is in line with Buffett’s belief in the durable competitive advantage and brand strength of Apple. The company’s wide moat, strong customer loyalty, and consistent innovation make it a staple in Berkshire’s portfolio.

Apple’s ecosystem of products and services, including the iPhone, Mac, iPad, and App Store, generates significant cash flows. These are further complemented by the company’s services segment, which includes Apple Music, Apple TV+, iCloud, and the App Store. The long-term potential of Apple, its commitment to shareholder returns through dividends and buybacks, and its reasonable valuation have made it an attractive investment for Berkshire Hathaway.

Chevron Corporation (CVX): Buffett’s Berkshire Hathaway also initiated a position in Chevron in Q2 by purchasing approximately 48.5 million shares. This move signifies a return to the energy sector, a significant shift from Buffett’s earlier stance. Berkshire Hathaway had divested its energy holdings in recent years but has now re-entered the sector with Chevron.

The energy sector has faced volatility, but Chevron’s commitment to financial discipline and capital allocation aligns with Buffett’s investment principles. Chevron’s diversified operations across the energy value chain, from exploration and production to refining and marketing, provide a buffer against the cyclical nature of the industry. Additionally, Chevron’s dividend yield, while not a primary factor for Buffett, offers a potential source of income.

Occidental Petroleum Corporation (OXY): In the second quarter of 2021, Berkshire Hathaway added to its existing stake in Occidental Petroleum by buying an additional 14.7 million shares. This follows an initial investment in OXY in 2019. Occidental Petroleum is an energy company engaged in oil and gas exploration, production, and marketing.

Warren Buffett’s investment in Occidental Petroleum is linked to his view on the energy sector and the potential for an economic recovery. The energy sector has been under pressure due to the pandemic and the shift towards renewable energy sources. However, Buffett’s investment in Occidental Petroleum is in line with his value investing principles, as he sees an opportunity for value in an industry that has faced headwinds.

While Berkshire Hathaway’s investment decisions are closely watched by the investment community, it’s important to note that Buffett has a long-term perspective, and these investments are not recommendations for short-term gains. Buffett’s approach is built on understanding the fundamentals of a company, its competitive advantage, and its potential for long-term growth. These investments in Apple, Chevron, and Occidental Petroleum reflect his optimism in the resilience and recovery of these companies.

In conclusion, Warren Buffett’s Berkshire Hathaway made strategic stock purchases in the second quarter of 2021, increasing its positions in Apple, Chevron, and Occidental Petroleum. These moves highlight Buffett’s confidence in the long-term prospects of these companies and his commitment to value investing. While his investment decisions are not guarantees of success, they offer insights into his investment philosophy and strategy.