World's Most Secure Oil Stocks Found in Warren Buffett's Investment Portfolio
Chevron, a major oil company, holds one of the largest positions in Warren Buffett's investment portfolio. As of early August 2025, the stock is trading around $148, with a price-to-earnings ratio of about 16.22 and a forward dividend yield of approximately 4.6%.
The company's strong position is due to its integrated global operations, including upstream drilling, transmission pipelines, refineries, and chemical plants. Chevron produces 3 million barrels of oil equivalent per day and has proven reserves of 9.8 billion barrels of oil equivalent as of year-end 2024.
Chevron's business model generates the largest margins from upstream drilling. However, its refineries and chemical operations provide a solid hedge against falling energy prices, making it a resilient choice in the volatile energy sector.
The company's solid performance is reflected in its financials. Chevron's second quarter earnings increased by over 250 percent to $11.6 billion, and its revenue increased by 80 percent to $68.8 billion. For 2022, analysts expect Chevron's earnings per share to increase by 142 percent to $17.69, and its revenue to increase by 77 percent to $234.49 billion.
Chevron's dividend is another attractive feature. The dividend could increase from $4.49 in 2021 to $5.56, offering a significant passive income stream for income-focused investors. A price target of $175 offers over 15 percent upside for Chevron's stock.
Chevron's resilience was evident during the early stages of the Corona pandemic. The company managed to survive without any lasting difficulties, demonstrating its adaptability and robustness.
Under the leadership of CEO Mike Wirth, Chevron announced doubling of investments from the previous year, indicating a commitment to growth and strategic expansion. This, coupled with its strong financial performance and dividend potential, makes Chevron a relatively safe investment in Buffett’s portfolio.
Warren Buffett, aged 91, is considered the best investor in the world. Berkshire Hathaway's A-shares have achieved a total return of over 3,6 million percent since 1965, a testament to Buffett's investment acumen. Chevron's inclusion in his portfolio underscores its potential as a long-term, profitable investment.
In conclusion, Chevron's moderate upside potential, strong dividends, global integrated operations, and strategic growth initiatives underpin its reputation as a relatively safe investment in Buffett’s portfolio. Its one-year performance is over 72 percent, and its debt-to-equity ratio is below 20 percent, further supporting its financial stability. For investors seeking a balance between growth potential and safety, Chevron could be a worthwhile consideration.
Chevron's financials demonstrate substantial growth, with earnings per share predicted to increase by 142% in 2022. This promising financial performance, combined with a solid dividend potential, positions it as a relatively safe investment.
Warren Buffett's inclusion of Chevron in his portfolio underscores its potential as a long-term, profitable investment, given its moderate upside potential, strong dividends, global integrated operations, and strategic growth initiatives.
