24/7 Insights

• Warren Buffett has a stunning $189 billion in cash and short-term Treasury debt
• Berkshire Hathaway is up 12.4% in 2024
• Grab this free report today Access 2 legendary, high-yield dividend stocks Wall Street loves

If any investor has stood the test of time, it’s Warren Buffett, and with good reason. For years, the “Oracle of Omaha” has had a rock star-like presence in the investing world, and his annual Berkshire Hathaway shareholders meeting draws thousands of loyal fans who are investors. Warren Buffett's investment strategies, characterized by long buy-and-hold approaches and a massive portfolio of public and private holdings, set him apart as one of the world’s leading investors. While his strategy is more concentrated than most, it has consistently delivered for Berkshire Hathaway investors and is likely to continue doing so in the future.One area that Buffett has continued to throw much of his vast cash supply at is energy, particularly at one top company. Energy currently makes up almost 9% of Berkshire Hathaway, and with oil starting to approach 2024 highs, he could very well be adding more.

Why are we covering this?

With a 15-year trackrecord of covering Mr. Buffett and Berkshire Hathaway at 24/7 Wall St., we like to keep our readers updated on the top news from the financial powerhouse. It should be noted that Berkshire Hathaway's overall performance has lagged the S&P 500 this year.

Chevron

This integrated giantis a safer way for investors looking to position themselves in the energy sector. It pays a rich 4.17% dividend. Chevron Corporation (NYSE: CVX) engages in integrated energy and chemicals operations worldwide through its subsidiaries.The companyoperates in two segments:

• Upstream
• Downstream

The Upstream segmentis involved in the following:

• Exploration, development, production, and transportation of crude oil and natural gas;
• Processing, liquefaction, transportation, and regasification associated with liquefied natural gas
• Transportation of crude oil through pipelines
• Transportation, storage, and marketing of natural gas, as well as operating a gas-to-liquids plant

The Downstream segmentengages in:

• Refining crude oil into petroleum product
• Marketing crude oil, refined products, and lubricants
• Manufacturing and marketing renewable fuels
• Transporting crude oil and advanced products by pipeline, marine vessel, motor equipment, and rail car
• Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives

Chevron announced in the fallthat it has entered into a definitive agreement with Hess Corporation (NYSE: HES) to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on October 20, 2023. Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The transaction's total enterprise value, including debt, is $60 billion.Three lawsuits have beenfiled against Hess, charging inadequate disclosure over the sale, and Chevron has said arbitration over Hess' Guyana assets could delay the closing timeline until October 2025. However, most Wall Street analysts feel the deal will ultimately be completed, and Chevron will emerge even more powerful in the energy sector.Berkshire Hathaway owns6.7% of Chevron's outstanding stock, 122,980,207 shares, and the energy giant makes up 4.8% of the portfolio. Each year, the stock generates $801,830,950 in dividend income. 

Occidental Petroleum

Over the last two years,Berkshire Hathaway has been buying the shares in a big way, which now amounts to a massive 255,281,524 shares that pay a decent 1.41% dividend. Occidental Petroleum (NYSE: OXY), together with its subsidiaries, is engaged in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, Africa, and Latin America.It operatesthrough three segments:

• Oil and Gas
• Chemical
• Midstream and Marketing

The company's Oil and Gas segment explores, develops, and produces oil and condensate, natural gas liquids (NGLs), and natural gas.Its Chemical segmentmanufactures and markets basic chemicals, including:

• Chlorine
• Caustic soda
• Chlorinated organics
• Potassium chemicals
• Ethylene dichloride
• Chlorinated isocyanurates
• Sodium silicates, and calcium chloride
• Vinyls comprising vinyl chloride monomer, polyvinyl chloride, and ethylene

The Midstreamand Marketing segment gathers, processes, transports, stores, purchases, and markets oil, condensate, NGLs, natural gas, carbon dioxide, and power. This segment also trades around its assets consisting of transportation and storage capacity; and invests in entities.Warren Buffett has loaded the boat on Occidental Petroleum, which pays Berkshire Hathaway a reported annual dividend of $903,847,747.  $224,647,747 from the common stock and $679,200,000 from a $10 billion position of Occidental preferred stock, which yields 8%. In addition, he owns warrants to buy an additional 83.9 million shares for $5 billion, which translates to $59.62 per share.

In June,Mr. Buffett bought company shares for nine straight days, upping his stake to an astounding 28.8%. It was reported that from June 5th on, he acquired an additional 7.3 million company shares at prices around the $60 level for the next nine trading days. Occidental Petroleum is Berkshire Hathaway's sixth-largest holding, and it is by far the largest institutional investor in the company. 

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