Berkshire Hathaway (BRK.A.US, BRK.B.US) reduced its holdings in Chevron Corporation (CVX.US) by approximately $8 billion in the first quarter, bringing its stake down to 4.2%.

Berkshire Hathaway (BRK.A.US, BRK.B.US) significantly reduced its stake in Chevron Corporation (CVX.US) in the first quarter of this year, selling approximately $8 billion worth of shares. At that time, due to escalating tensions in the Middle East, international oil prices surged, and Chevron Corporation's stock price reached a historic high. According to regulatory filings submitted by Berkshire on Friday, the company reduced its holdings of Chevron Corporation by about one-third in the first quarter, with its ownership stake now standing at 4.2%. Despite the large-scale divestment, Berkshire remains the fourth-largest shareholder of Chevron Corporation. Data shows that in March of this year, following military actions by the US and Israel against Iran, concerns about energy supply in the Middle East sharply increased, leading to a significant rise in international oil prices and pushing Chevron Corporation's stock price to a historic high. Berkshire's timing of the divestment was quite precise, successfully locking in some investment gains during a strong period for energy stocks. Berkshire first began buying Chevron Corporation shares in 2020 when the stock price was around $65 per share. The company had reduced its holdings slightly in 2021. Around the time of the 2022 Russia-Ukraine conflict, Berkshire further increased its holdings in Chevron Corporation, purchasing shares at an average price of around $124. The average selling price for the recent divestment was around $182.59 per share, significantly higher than its initial cost basis. It is worth noting that Berkshire has been increasing its allocation to the energy sector in recent years, holding a significant amount of shares in Occidental Petroleum Corporation (OXY.US) in addition to Chevron Corporation.