Warren Buffett's Berkshire trims stake in 147-year-old oil stock

Warren Buffett has spent decades doing one thing better than almost anyone on Wall Street.

He buys when everyone else is nervous. And he sells when the crowd is most excited.

That playbook appears to have driven Berkshire Hathaway’s latest move in one of its most high-profile energy positions. 

The Omaha-based conglomerate made a significant cut to its holdings inChevron, the 147-year-old oil giant, during the first quarter of 2026. 

The timing was sharp. And the payday was enormous.

Why Chevron stock hit record territory

To understand the trade, you have to understand what happened to global oil markets earlier this year.

Chevron (CVX), founded in 1879, is one of the largest integrated energy companies in the world.

It explores, produces, refines, and sells oil and natural gas across the globe. When crude prices move sharply higher, Chevron’s earnings and stock price tend to follow.

Related: Chevron CEO sends worrisome Middle East oil message

That is what happened in the first quarter. Military operations involving U.S. and Israeli forces against Iran escalated tensions across the Middle East and disrupted critical maritime shipping lanes used to move crude around the world. 

When supply routes get squeezed, prices spike fast. Global crude benchmarks surged, and energy stocks ran with them.

Chevron shares hit an all-time high in March 2026. For CVX stock investors, it was a rare and powerful moment.

Chevron CEO Mike Wirth acknowledged the disruption on the company’s first quarter 2026 earnings call, calling it “a very significant disruption to the global energy system.” 

Wirth emphasized:

“We have a world-class portfolio and upstream assets with peer-leading cash margins, and we’re carrying strong momentum into the second quarter.”

The company reportedadjusted earnings of $2.8 billion for the quarter. It generated$7.1 billion in cash flow from operations, with production jumping roughly 500,000 barrels of oil equivalent per day compared to the same period last year. 

Much of that jump came from the integration of legacy Hess assets following Chevron’s acquisition in 2024.

Despite market volatility, Chevron confirmed that its full-year capital and production guidance remains unchanged, targeting 7-10% production growth in 2026.

Chevron CEO is optimistic about the world-class portfolio

How Berkshire cashed in on the Chevron rally

Berkshire’s move was as deliberate as it was profitable. According to a Bloomberg report citing a regulatory filing:

Berkshire Hathaway sold roughly 35% of its Chevron stake during the first quarter. The conglomerate offloaded more than 45 million shares at a volume-weighted average price of about $182.59 each, generating close to $8 billion in proceeds. Even after the sale, Berkshire still owns a 4.2% stake in Chevron and remains the company’s fourth-largest institutional shareholder.

The returns on this trade are striking when you look at the full history.

Berkshire first bought Chevron in 2020 at around $65 per share. It trimmed the position briefly in 2021, then added aggressively again in 2022 at roughly $124 per share when supply disruptions caused by the conflict in Ukraine sent energy stocks higher. Selling near $183 means Buffett’s team locked in returns of up to 180% on those early purchases.

It reflects a patient, multi-year strategy of building exposure during downturns and reducing it when valuations peak.

What Buffett’s Chevron move means for you

For everyday investors, Berkshire’s decision carries a broader and very practical lesson.

Energy stocks are inherently tied to forces that are difficult to predict. Geopolitical conflict, OPEC production policy, global shipping disruptions, and demand cycles all drive crude prices.

Chevron itself acknowledged on its earnings call that the situation in the Middle East remains fluid, with CEO Wirth noting it is “early to have firm conclusions about how the energy system will change in the long term.”

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That kind of uncertainty is precisely why Buffett’s discipline stands out. Rather than holding through unpredictable volatility, Berkshire trimmed near the top and booked a massive gain.

Chevron’s operational picture remains strong heading into the second half of 2026.

The company’s Tengizchevroil joint venture is producing more than 1 million barrels of oil per day, its Australian liquefied natural gas facilities are running at full capacity, and Permian Basin output is also solidly above 1 million barrels per day. 

Chevron is also targeting $3 billion to $4 billion in structural cost reductions by year-end.

So Berkshire is not walking away from Chevron. It is simply holding less of a very good company after the stock delivered a rare, short-term windfall.

Knowing when to lock in a win is a skill. Buffett has been practicing it for more than half a century.

Related: Chevron CEO sends blunt message on oil, economy

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