Berkshire Hathaway shares had fallen for eight consecutive sessions, their longest losing streak since eight straight down days in December 2018. While that streak was broken on Monday, Berkshire Hathaway Class B (NYSE: BRK-B) shares look compelling at current levels for several reasons. After 8 consecutive down sessions, the stock appears technically oversold, offering a potential entry point that long-term investors rarely get.
Fundamentally, Berkshire remains one of the most fortress-like companies in the world, with a massive cash hoard reported at $373 billion a diversified portfolio of wholly-owned businesses spanning insurance, energy, railroads, and manufacturing, plus significant equity stakes in blue-chip names like Apple (NASDAQ: AAPL | AAPL Price Prediction), American Express (NYSE: AXP), and Coca-Cola (NYSE: KO).
The company’s insurance operations, led by GEICO and General Re, generate substantial income that Warren Buffett and his team deploy with exceptional discipline. Unlike most companies, Berkshire actually benefits from market downturns because it has the balance sheet to go shopping when others are forced to sell. Greg Abel, having been groomed for the top role and stepping into the CEO slot on January 1, has been buying back Berkshire shares for the portfolio and his personal account. Concerns about the transition have been largely addressed, and the recent sell-off was likely just a byproduct of the recent stock market correction. For patient investors with a multi-year horizon, a pullback of this magnitude in a business of this quality is historically the kind of opportunity that looks obvious in hindsight.
One unsung set of winners in the Berkshire Hathaway portfolio is its energy holdings. While just two companies make the cut for Berkshire Hathaway, one is an integrated giant that has been absolutely on fire, and the other is a position Buffett built over the years that has finally exploded higher with the price of oil, recently hitting highs not seen since July of 2022. Both are outstanding ideas for long-term investors, and both are rated Buy at top Wall Street firms.
Chevron
Chevron (NYSE: CVX)is an American multinational energy company primarily focused on oil and gas. This integrated giant is a safer option for investors looking to position themselves in the energy sector and pays a substantial 3.29% dividend, which was raised by 5% earlier this year. Berkshire Hathaway bought a very well-timed 8 million additional shares in the fourth quarter and now owns 130,156,362 shares, which equals 6.5% of the float and 8% of the portfolio.
Chevron operates integrated energy and chemicals businesses worldwide through two segments. The Upstream segment is involved in:
- 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, and transportation, storage
- Marketing of natural gas, as well as operating a gas-to-liquids plant
The Downstream segment engages in:
- Refining crude oil into petroleum products
- Marketing crude oil, refined products, and lubricants
- Manufacturing and marketing renewable fuels
- Transporting crude oil and refined 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
It also involves cash management, debt financing, insurance operations, real estate, and technology businesses.
Mizuho has an Overweight rating with a $217 target price.
Occidental Petroleum
After years of building this position, Buffett and Berkshire Hathaway are finally in the money on this company, which pays a 1.49% dividend. Occidental Petroleum (NYSE: OXY) is an international energy company with assets primarily in the United States, the Middle East, and North Africa. The company is an oil and gas producer in the United States, including the Permian and DJ basins and the offshore Gulf of Mexico.
Berkshire Hathaway has a large position in the company, owning 264,941,431 shares, which is a stunning 26.7% of the float and 5.6% of the portfolio.
Occidental’s oil and gas segment explores for, develops, and produces oil (including condensate), natural gas liquids (NGLs), and natural gas. The midstream and marketing segment purchases, markets, gathers, processes, transports, and stores oil (including condensate), NGLs, natural gas, carbon dioxide (CO2), and power. This segment provides flow assurance and maximizes the value of its oil and gas, as well as optimizing the company’s transportation and storage capacity. It also invests in entities that conduct similar activities, including low-carbon venture businesses.
A very notable development recently was Occidental’s decision to sell its OxyChem subsidiary to Berkshire Hathaway, with the bulk of the proceeds expected to strengthen the company’s balance sheet and further concentrate its business on oil and gas. The move was especially interesting because Buffett had reportedly long been interested in OxyChem, and Berkshire now owns the business outright. Berkshire Hathaway completed its purchase of OxyChem from Occidental on January 2, 2026, giving Buffett full ownership of the chemicals business while providing Occidental with $9.7 billion in cash to reduce debt and sharpen its focus on energy.
Mizuho has an Overweight rating on this stock, and a $72 price objective.
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