We recently compiled a list of the 10 Best Warren Buffett Stocks to Buy Right Now. In this article, we are going to take a look at where Chevron Corporation (NYSE:CVX) stands against the other Warren Buffett Stocks.
Warren Buffett is one of the most successful investors the world has known. Additionally, he is arguably one of the strongest supporters of long-term investing. Buffett uses his hedge fund, Berkshire Hathaway, to invest in solid businesses, and he frequently keeps such stocks for years or even decades.
Warren Buffett wagered $1 million in 2007 that the broader market index fund would outperform a group of hedge funds over ten years. Buffett’s preferred Vanguard Index Fund Admiral Shares produced average yearly returns of 7.1%, despite the 2008 financial crisis, compared to the average of the hedge funds of 2.2%. While hedge funds only reached $121,000 by 2016, a $100,000 investment in Vanguard grew to $185,000. The primary issue was fees, with hedge funds’ 2% management fees and 20% profit share reducing earnings compared to index funds’ 0.03% fees. Buffett’s straightforward approach, supported by inexpensive investing, far outpaced pricey active management.
Warren Buffett made it clear in his 2025 shareholder letter that Berkshire is not abandoning stocks, even though some analysts claim that the company has a record $334 billion in cash that it is reserving. Buffett tells shareholders,
“Despite what some commentators currently view as an extraordinary cash position at Berkshire, the great majority of your money remains in equities. That preference won’t change.”
Buffett’s longtime belief that equities, which represent ownership in successful companies, are still the best way to build wealth over the long run is reflected in this position. He cautions against turning to cash or bonds, particularly in inflationary times when bond returns lag behind price increases and the currency depreciates.
Buffett’s value investing concepts remain intact even as markets shift. He draws attention to the company’s growing stakes in five significant Japanese trading firms, which represents an exceptional but purposeful venture into international stocks. He mentioned that after reviewing the financial records, they were surprised by how undervalued the stocks appeared. Despite some of these equities declining by as much as 24% over the past year, he regarded these downturns as investment opportunities rather than reasons for concern. He also emphasized that their holdings in these five companies were intended to be long-term investments.
Buffett’s conviction that patient investors will eventually be rewarded by undervalued companies with solid fundamentals is seen in Japanese investments. He commends these businesses for their prudent capital management, shareholder-friendly practices, and fair executive pay. Buffett’s strategy highlights a key idea in value investing: if the underlying company is favorable, short-term price volatility doesn’t matter. Buffett has shown throughout his career that he does not hesitate to look for bargains, even if they are located outside of the United States.
The route to success continues to be apparent for investors who want to follow in Buffett’s footsteps: own up to your mistakes, stick with profitable assets like equities, and patiently invest where value is present despite short-term noise.
A tanker truck making its way through a refinery facility. .
Methodology
For this article, we scanned Warren Buffett’s Q4 2024 portfolio. From the resultant dataset, we chose 10 stocks with the highest number of hedge fund investors, using Insider Monkey’s database of over 1,000 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have used the stock’s revenue growth (year-over-year) as a tiebreaker in case two or more stocks have the same number of hedge funds invested.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Investors: 81
Revenue Growth Rate (year-over-year): 0.39%
The multinational oil company Chevron Corporation (NYSE:CVX) engages in exploration, production, and refining activities. It produces 3.1 million barrels of oil equivalent per day, which includes 1.8 million barrels of liquids and 7.7 million cubic feet of natural gas, making it the second-largest oil firm in the US. Production takes place throughout South and North America, Asia, Africa, Australia, and Europe.
It recently disclosed a partnership to create scalable power solutions, including carbon capture and storage, based on natural gas-fired turbines to satisfy the growing energy needs of data centers in the United States. Moreover, the company successfully started producing gas from the Sanha Lean Gas Connection project, guaranteeing the Angola Liquefied Natural Gas facility a steady supply of natural gas. Chevron Corporation (NYSE:CVX) has gone up by about 5% since the start of 2025, making it one of the Best Warren Buffett Stocks.
In 2024, Chevron Corporation (NYSE:CVX) broke records and exceeded expectations. While output in the United States rose by an astounding 19% to record levels, output globally grew by 7%. Looking ahead to 2025, growth is projected to continue, supported by the full-year benefits of the PDC Energy acquisition, which closed in August 2023. The introduction of significant projects in the Gulf of Mexico and continued growth in the Permian Basin, where output jumped by 18%, further strengthened its overall performance.
Warren Buffett’s Berkshire Hathaway was the largest stakeholder in the company among the funds in Insider Monkey’s database at the end of Q4 2024. It owns 118.61 million shares worth $17.18 billion as of Q4.
Overall CVX ranks 10th on our list of the best Warren Buffett stocks to buy right now. While we acknowledge the potential for CVX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CVX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.