“Warren Buffett’s $77 Billion Buying Spree: The Oracle of Omaha’s Favorite Stock Revealed!”

Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, has been making waves on Wall Street with his strategic stock purchases. Since July 2018, Buffett has been on a buying spree, acquiring more than $77 billion worth of his favorite stock. This stock, however, may come as a surprise to many, as it is not a traditional pick for the “Oracle of Omaha.”

In a departure from his usual investment choices, Buffett has shown a newfound fascination with energy stocks. Historically, financial stocks and consumer staples have been key components of Berkshire’s investment portfolio. However, in recent years, Buffett and his team have shifted their focus to energy companies, particularly oil and gas stocks.

Chevron and Occidental Petroleum have emerged as standout picks in Berkshire’s portfolio, with the two companies accounting for nearly $34 billion in market value. Berkshire’s significant holdings in these energy giants reflect Buffett’s confidence in the long-term prospects of the oil and gas industry. Despite the challenges faced by the sector during the COVID-19 pandemic, Buffett sees potential for sustained growth in the price of crude oil.

The appeal of integrated energy companies like Chevron and Occidental Petroleum lies in their diversified operations and strong cash flow generation. These companies not only benefit from their drilling activities but also from their midstream and downstream operations, which provide stability and hedging opportunities. Additionally, both companies have robust capital-return programs, including share repurchases and dividend increases, further enhancing their attractiveness to investors like Buffett.

While Buffett’s energy stock picks have garnered attention, his favorite stock to buy may come as a surprise to some. Contrary to popular belief, Buffett’s top pick is not a traditional stock listed in Berkshire’s 13F filings. Instead, it is shares of his own company, Berkshire Hathaway.

Since the company revised its share buyback criteria in July 2018, Buffett has been actively repurchasing Berkshire’s shares, totaling over $77 billion in purchases over 23 consecutive quarters. This strategic move not only rewards Berkshire’s shareholders but also reflects Buffett’s confidence in the intrinsic value of the company’s stock. By reducing the outstanding share count, Berkshire’s EPS is expected to rise over time, making the stock more appealing to investors focused on fundamentals.

Overall, Buffett’s recent stock purchases highlight his strategic acumen and willingness to adapt to changing market conditions. By diversifying Berkshire’s portfolio with energy stocks and prioritizing share buybacks, Buffett continues to demonstrate his long-term vision and commitment to creating value for shareholders.