Buffett Backs Berkshire And Big Oil

Berkshire Hathaway has restarted repurchasing its own shares after a long pause, according to a regulatory filing with the U.S. Securities and Exchange Commission on March 4, 2026. New CEO Greg Abel confirmed the move in a CNBC interview the same day.

The buybacks mark a shift after Warren Buffett, who stepped down as CEO at the end of 2025, had been a net seller of stocks for 13 consecutive quarters. Although no longer CEO, Buffett remains chairman and continues to work at Berkshire "five days a week," according to Abel.

Abel stated he "consulted with Warren relative to the value and the timing" of the repurchases, as required by Berkshire’s share repurchase program adopted by the board last year. The policy stipulates the CEO must consult with the chairman before buying back stock.

Berkshire will only repurchase its shares when Abel and Buffett believe the stock price is below intrinsic value from a conservative standpoint. The company has resumed buybacks even though its share price is higher than during much of the previous period when Buffett did not repurchase stock.

Buffett left Abel with significant financial resources. Berkshire’s cash, cash equivalents, and short-term investments totaled $373 billion at the end of 2025, much of it in U.S. Treasuries. This amount exceeds the market capitalization of 477 companies in the S&P 500 (SPX) index, according to one article.

In his first letter to shareholders, Abel wrote that Berkshire’s top capital allocation priority is to invest in businesses it thoroughly understands, with durable advantages and long-term economic prospects. He also said the company will always aim for ownership of productive businesses over U.S. Treasuries.

Before retiring as CEO, Buffett built substantial positions in oil producers Occidental Petroleum and Chevron (CVX). Berkshire acquired nearly 27% of Occidental’s outstanding shares and a 6.5% stake in Chevron, making them Berkshire’s sixth- and fourth-largest holdings, respectively.

These stakes have benefited from a sharp rise in crude prices linked to the war with Iran, with articles characterizing Occidental and Chevron as among the safest oil stocks in the current market environment.

Occidental has restructured its portfolio in recent years, aided by Berkshire’s financing. Buffett’s company helped fund Occidental’s $38 billion acquisition of Anadarko Petroleum in 2019 through a preferred stock investment, allowing Occidental to outbid Chevron.

The company further expanded with the $12 billion CrownRock acquisition in 2024. Despite the resulting debt load, Occidental has been reducing borrowings using free cash flow and asset sales, including selling OxyChem to Berkshire for $9.7 billion earlier in 2026.

Occidental was on track to generate an additional $1.2 billion of free cash flow this year even without higher oil prices. With crude now elevated, the company is expected to generate significantly more cash, which can be used to repay debt, repurchase shares, and eventually redeem Berkshire’s preferred stock.

Chevron has also reshaped its asset base in recent years, selling lower-margin operations and investing in higher-margin projects. The company completed several major growth capital projects last year and closed its $55 billion acquisition of Hess.

At an assumed oil price of $70 per barrel, Chevron had expected to generate $12.5 billion of incremental free cash flow this year. With oil prices now much higher, it anticipates even stronger cash generation that can support its balance sheet and share repurchases near the top end of its $10 billion to $20 billion target range.

Articles link Berkshire’s renewed share buybacks and the strength of its oil holdings to the current macro environment, which includes soaring oil prices, a weakening economy, and the potential resurgence of inflation. Against this backdrop, Abel and Buffett are described as viewing Berkshire Hathaway itself as the best available buying opportunity.