Legendary investor Warren Buffett’s time-tested value investing strategies set him apart in the investing world. His approach of buying great businesses at low prices for the long term continues to help Berkshire Hathaway stocks navigate market volatility, up 12.86% year-to-date (YTD) and over 91% in the past five years during the pandemic and global conflicts.
In recent years, Buffett has consistently allocated cash to energy stocks, which account for 10% of his $331 billion portfolio. He bought over 7 million shares of Occidental Petroleum at an average price of $60 in early June when oil prices were as low as $77.52 a barrel. Since then, oil prices have steadily climbed to above $83 on July 7, which can reap profits for Occidental Petroleum and Chevron, a petroleum refineries company and the fifth-largest holding in the Berkshire Hathaway portfolio.
Meanwhile, both oil companies are dividend aristocrats. These companies in the S&P 500 index have consistently paid and increased dividends for the last 25 years. There are generally under 100 dividend aristocrats at any given time since these are big, stable businesses that offer recession-proof products for continued growth despite market upheavals.
Chevron (NYSE: CVX)
Occidental Petroleum (NYSE: OXY)
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