Berkshire Hathaway Cuts Chevron Stake by 20.8%. Time to Sell?
Warren Buffett-led Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) is known for investing in industry-leading companies and holding positions over time. And although many of Buffett's top picks tend to be traditional, stodgy businesses, there have been recent examples where Buffett and his team have looked for value in other places. The most famous recent Buffett stock is Apple -- which makes up a staggering 46.5% of Berkshire's public equity holdings. But an equally large story has been Berkshire's oil and gas buying spree.
In the span of just a few years, integrated oil and gas titan Chevron (NYSE: CVX) grew to become Berkshire's third-largest public equity position behind Apple and Bank of America as of Dec. 31, 2022. However, Berkshire sold some Chevron in the fourth quarter of 2022. Then it dropped a bomb at its annual meeting when it disclosed it slashed its Chevron stake by 20.8% in the first quarter of 2023, knocking Chevron down to the fifth-largest holding as of March 31, 2022. Factor in a 9.1% decline in Chevron stock in Q1, and Berkshire's overall Chevron position fell from around $30 billion as of the end of Q4 2022 to $21.6 billion as of the end of Q1 2023.
Let's determine if it's time to follow suit and sell Chevron stock or if the stock remains a good buy now.
Source Fool.com
Chevron Corp. Stock
With 25 Buy predictions and not a single Sell prediction Chevron Corp. is an absolute favorite of our community.
With a target price of 179 € there is a slightly positive potential of 16.05% for Chevron Corp. compared to the current price of 154.24 €.
