Warren Buffett continues to keep most of his powder dry. In the fourth quarter of 2023, he only bought three stocks, all of which were additions to existing Berkshire Hathaway positions.

When Buffett is reluctant to invest, it's worth paying close attention to the stocks that he is willing to buy. One of his recent purchases, (NYSE: CVX), is a beaten-down high-yield dividend stock. Why is Buffett loading up on Chevron -- and should you follow in his footsteps?

Chevron ranks as Buffett's fifth-largest position, making up 5.1% of Berkshire's overall portfolio. The legendary investor first initiated a position in the oil and gas giant in the fourth quarter of 2020. At the time, Chevron's shares were down significantly with the lingering impact of the COVID-19 pandemic.

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Source Fool.com