These days, almost every big investor seems to be chasing one thing — artificial intelligence. Stocks linked to AI have been skyrocketing, and companies like Nvidia and Amazon are constantly in the spotlight. But in his final months as CEO of Berkshire Hathaway, Warren Buffett chose to go in a completely different direction. Instead of riding the AI wave, he made one very large and very surprising move.
Instead of putting that money into another AI company, Buffett turned to a sector he has trusted for years — oil.
Buffett’s big bet goes against the crowd
Buffett didn’t increase his stakes in familiar giants like Apple or Bank of America. In fact, he trimmed them. More than 7 million shares of Apple, Bank of America, and even Amazon were sold.
At a time when the market is obsessed with artificial intelligence, Buffett quietly placed a massive $19.8 billion bet on energy, specifically on Chevron, one of the world’s largest oil companies. According to The Motley Fool, during the last quarter, Berkshire bought more than 8 million shares of Chevron. This pushed its total investment in the company to over $19.8 billion.
That also makes Chevron the fifth-largest holding in Berkshire’s portfolio. The stake now accounts for about 7.24% of all the company’s publicly disclosed investments. In just one quarter, Buffett put in more than $1.2 billion to increase his position.
For someone who has spent over six decades carefully picking undervalued businesses, this looked like a clear statement: he still believes in companies that generate steady cash and hold strong positions in their industry.
Why Buffett picked Chevron?
Surprisingly, Chevron hadn’t been performing strongly. In fact, its stock had lagged behind the S&P 500 by more than 10% in 2025. It didn’t look like an obvious winner. But Buffett has always liked buying when prices are low. He picked up shares at an average price of about $132 each, betting that the tide would turn.
Chevron’s stock wasn’t exactly shining, and the global energy market didn’t offer any clear signals at the time. Even Buffett couldn’t have predicted what was about to happen in 2026. But a series of global events suddenly pushed oil prices higher.
What changed everything in 2026
In January, Venezuelan President Nicolás Maduro was captured, opening the door for possible long-term oil opportunities in Venezuela. While most oil companies don’t have operations there, Chevron stands out as the only major US oil company actively drilling in the country. At the same time, tensions in the Middle East led to Iran closing the Strait of Hormuz, one of the world’s most important oil routes. That move sent global crude oil prices soaring.
As oil prices climbed, Chevron’s stock followed. The share price jumped 37% in 2026 so far, reaching $209. In contrast, the S&P 500 has dropped 4.8% during the same period. For Berkshire Hathaway, the company has already seen a 58% return on its latest Chevron investment, and that too in less than six months.
What’s next
The big question is whether this bet will hold under new management. Greg Abel, who took over as CEO, hasn’t yet signalled his own energy strategy. That means Berkshire’s bet still stands on the confidence of a departing CEO. Investors will watch May 15, when Berkshire files its next 13F report, to see if the $19.8 billion Chevron stake is maintained. A hold would confirm Buffett’s concentrated conviction, while a cut could suggest a shift in strategy.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a registered financial advisor in the respective jurisdiction.