Potential Successor to Warren Buffett at Berkshire Faces Significant Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 31 2025
0mins
Source: Barron's
Ted Weschler's Role: Ted Weschler is poised to become Berkshire Hathaway's leading stockpicker.
Investment Success: He transformed an IRA account of approximately $70,000 in the late 1980s into $221 million by 2018.
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Analyst Views on CVX
Wall Street analysts forecast CVX stock price to fall
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 211.150
Low
158.00
Averages
176.95
High
206.00
Current: 211.150
Low
158.00
Averages
176.95
High
206.00
About CVX
Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Energy Stock Restructuring and Dividend Dynamics
- Oil Price Surge Impact: Brent crude oil prices have surged 70% this year, surpassing $100 per barrel, driving energy stocks higher and resulting in the Schwab U.S. Dividend Equity ETF (SCHD) gaining over 10% since the beginning of the year, significantly outperforming the S&P 500's decline of over 5%.
- Annual Reconstitution Adjustment: The Schwab U.S. Dividend Equity ETF recently completed its annual reconstitution, deleting 22 stocks and adding 25 new ones, with its energy allocation decreasing from 23.5% to 16.3%, indicating a reassessment of the energy market.
- Comparison of New and Old Holdings: The Schwab ETF exited three energy stocks—Valero, Haliburton, and Ovintiv—due to their slow dividend growth and yields below the fund's average of 3.4%, reflecting a stringent selection for high-yield stocks.
- New Potential Addition: Devon Energy, newly added to the fund, is expected to increase its dividend to $0.315 per share following its merger with Coterra Energy, raising its yield to 2.4% post-merger, thereby providing strong growth potential for the fund's returns.
See More
Schwab U.S. Dividend ETF Reduces Energy Stock Exposure
- Energy Stock Reduction: The Schwab U.S. Dividend ETF has reduced its energy stock allocation from 23.5% to 16.3% post-annual reconstitution, reflecting a cautious stance towards future market volatility while still maintaining significant exposure to the sector.
- New Holdings Added: The fund has added Devon Energy with an initial allocation of 0.8%, which is expected to rise to 2.4% following its merger with Coterra Energy, indicating a preference for high-growth dividend stocks amidst changing market conditions.
- Dividend Growth Potential: Devon Energy plans to increase its quarterly dividend by 31% post-merger, enhancing its attractiveness, particularly against the backdrop of rising oil prices, which is expected to yield substantial returns for investors.
- Key Holdings Performance: Despite reducing energy stock exposure, the fund's top two holdings remain Chevron and ConocoPhillips, with allocations of 4.6% and 4.3%, respectively, both of which demonstrate strong dividend growth potential, likely to continue driving the fund's overall returns.
See More
U.S. Treasury Yields Edge Lower Amid Fed Rate Outlook
- Yield Movements: The yield on the 10-year Treasury fell by over 2 basis points to 4.313%, while the 2-year and 30-year yields dropped to 3.803% and 4.892%, respectively, indicating a market reassessment of the Federal Reserve's interest rate outlook.
- Geopolitical Impact: The ongoing U.S.-Iran conflict continues to capture investor attention, with soaring oil prices raising inflation concerns and recession risks, thereby clouding the outlook for monetary policy and affecting market sentiment.
- Rate Expectations: According to the CME's FedWatch tool, money markets overwhelmingly price in no rate cuts from the Federal Reserve for the remainder of the year, reflecting a cautious investor stance on future monetary policy.
- Economic Data Focus: Investors will closely monitor the upcoming February JOLTs job openings data, set to be released at 10 a.m. ET, which could further influence market sentiment.
See More
Middle East Conflict Escalates Oil Prices
- Oil Price Surge Expected: Following Iran's rejection of the U.S. peace plan, experts predict Brent crude prices could soar from $107 to between $150 and $200, indicating the profound impact of Middle Eastern tensions on the global energy market.
- Chevron Stock Rise: Over the past month, Chevron's stock has risen more than 13%, currently trading at $210.65 per share with a market cap of $420 billion, reflecting investor confidence bolstered by its strong upstream operations in North America.
- Oneok's Steady Growth: Oneok's stock has increased by 13.7% in the past month, with projections indicating that by 2026, natural gas and natural gas liquids will account for 35% and 27% of net income respectively, showcasing its diversified midstream assets that mitigate single commodity risks.
- Dividend Returns Attract Investors: Chevron has raised its dividend for 39 consecutive years, currently offering a 3.5% yield, while Oneok provides a 4.5% yield with plans for annual growth of 3% to 4% in the coming years, appealing to investors seeking stable returns.
See More
Dow Jones Index Approaches Correction Territory
- Dow Jones Volatility: The Dow Jones Industrial Average briefly slipped into correction territory, down 10% from its previous high, but slightly rebounded on March 30, 2026, indicating market uncertainty that could lead to another drop.
- Chevron's Strong Performance: Chevron (CVX) has been the best-performing stock year-to-date, benefiting from skyrocketing oil and gas prices due to Iran's closure of the Strait of Hormuz, with a market cap of $420 billion and projected annual EPS and free cash flow growth exceeding 10%, making it a solid hedge for investors.
- Challenges for JPMorgan Chase: JPMorgan Chase (JPM) has struggled in 2026 as rising oil prices raise inflation concerns, yet it maintains a strong balance sheet with a market cap of $765 billion, positioning it well for potential economic downturns.
- Walmart as a Safe Haven: Walmart (WMT) has attracted investors during market volatility, with its stock rising year-to-date and a market cap of $985 billion, leveraging its low-price leadership and robust e-commerce platform to potentially outperform most stocks in a significant market pullback.
See More
Energy Stocks Surge Amid Escalating Iran Conflict
- Oil Price Surge: The escalating conflict with Iran has led to a more than 44% increase in Brent crude prices over the past month, rising from $107 to a projected range of $150-$200, which has sparked a rush of investment into energy stocks, indicating strong market confidence in the sector.
- Chevron's Strong Performance: Chevron (CVX) shares have risen over 13% during the same period, with a current price-to-earnings ratio of 10.7, exceeding its five-year average of 8.3, reflecting investor recognition of its robust upstream operations in North America and other regions, particularly amid the closure of the Strait of Hormuz.
- Oneok's Growth Potential: Oneok (OKE) stock has increased by 13.7% in the past month, with its diversified midstream assets and over 90% fee-based revenue model providing strong risk mitigation in transporting natural gas and crude oil, projecting that natural gas liquids and gathering will account for 62% of net income by 2026.
- Commitment to Shareholder Returns: Chevron has raised its dividend for 39 consecutive years, currently offering a 3.5% forward yield, while Oneok provides a 4.5% yield with plans for annual growth of 3% to 4%, demonstrating both companies' strong commitment to returning capital to shareholders.
See More
Energy Stock Restructuring and Dividend Dynamics
- Oil Price Surge Impact: Brent crude oil prices have surged 70% this year, surpassing $100 per barrel, driving energy stocks higher and resulting in the Schwab U.S. Dividend Equity ETF (SCHD) gaining over 10% since the beginning of the year, significantly outperforming the S&P 500's decline of over 5%.
- Annual Reconstitution Adjustment: The Schwab U.S. Dividend Equity ETF recently completed its annual reconstitution, deleting 22 stocks and adding 25 new ones, with its energy allocation decreasing from 23.5% to 16.3%, indicating a reassessment of the energy market.
- Comparison of New and Old Holdings: The Schwab ETF exited three energy stocks—Valero, Haliburton, and Ovintiv—due to their slow dividend growth and yields below the fund's average of 3.4%, reflecting a stringent selection for high-yield stocks.
- New Potential Addition: Devon Energy, newly added to the fund, is expected to increase its dividend to $0.315 per share following its merger with Coterra Energy, raising its yield to 2.4% post-merger, thereby providing strong growth potential for the fund's returns.
See More
Schwab U.S. Dividend ETF Reduces Energy Stock Exposure
- Energy Stock Reduction: The Schwab U.S. Dividend ETF has reduced its energy stock allocation from 23.5% to 16.3% post-annual reconstitution, reflecting a cautious stance towards future market volatility while still maintaining significant exposure to the sector.
- New Holdings Added: The fund has added Devon Energy with an initial allocation of 0.8%, which is expected to rise to 2.4% following its merger with Coterra Energy, indicating a preference for high-growth dividend stocks amidst changing market conditions.
- Dividend Growth Potential: Devon Energy plans to increase its quarterly dividend by 31% post-merger, enhancing its attractiveness, particularly against the backdrop of rising oil prices, which is expected to yield substantial returns for investors.
- Key Holdings Performance: Despite reducing energy stock exposure, the fund's top two holdings remain Chevron and ConocoPhillips, with allocations of 4.6% and 4.3%, respectively, both of which demonstrate strong dividend growth potential, likely to continue driving the fund's overall returns.
See More
U.S. Treasury Yields Edge Lower Amid Fed Rate Outlook
- Yield Movements: The yield on the 10-year Treasury fell by over 2 basis points to 4.313%, while the 2-year and 30-year yields dropped to 3.803% and 4.892%, respectively, indicating a market reassessment of the Federal Reserve's interest rate outlook.
- Geopolitical Impact: The ongoing U.S.-Iran conflict continues to capture investor attention, with soaring oil prices raising inflation concerns and recession risks, thereby clouding the outlook for monetary policy and affecting market sentiment.
- Rate Expectations: According to the CME's FedWatch tool, money markets overwhelmingly price in no rate cuts from the Federal Reserve for the remainder of the year, reflecting a cautious investor stance on future monetary policy.
- Economic Data Focus: Investors will closely monitor the upcoming February JOLTs job openings data, set to be released at 10 a.m. ET, which could further influence market sentiment.
See More
Middle East Conflict Escalates Oil Prices
- Oil Price Surge Expected: Following Iran's rejection of the U.S. peace plan, experts predict Brent crude prices could soar from $107 to between $150 and $200, indicating the profound impact of Middle Eastern tensions on the global energy market.
- Chevron Stock Rise: Over the past month, Chevron's stock has risen more than 13%, currently trading at $210.65 per share with a market cap of $420 billion, reflecting investor confidence bolstered by its strong upstream operations in North America.
- Oneok's Steady Growth: Oneok's stock has increased by 13.7% in the past month, with projections indicating that by 2026, natural gas and natural gas liquids will account for 35% and 27% of net income respectively, showcasing its diversified midstream assets that mitigate single commodity risks.
- Dividend Returns Attract Investors: Chevron has raised its dividend for 39 consecutive years, currently offering a 3.5% yield, while Oneok provides a 4.5% yield with plans for annual growth of 3% to 4% in the coming years, appealing to investors seeking stable returns.
See More
Dow Jones Index Approaches Correction Territory
- Dow Jones Volatility: The Dow Jones Industrial Average briefly slipped into correction territory, down 10% from its previous high, but slightly rebounded on March 30, 2026, indicating market uncertainty that could lead to another drop.
- Chevron's Strong Performance: Chevron (CVX) has been the best-performing stock year-to-date, benefiting from skyrocketing oil and gas prices due to Iran's closure of the Strait of Hormuz, with a market cap of $420 billion and projected annual EPS and free cash flow growth exceeding 10%, making it a solid hedge for investors.
- Challenges for JPMorgan Chase: JPMorgan Chase (JPM) has struggled in 2026 as rising oil prices raise inflation concerns, yet it maintains a strong balance sheet with a market cap of $765 billion, positioning it well for potential economic downturns.
- Walmart as a Safe Haven: Walmart (WMT) has attracted investors during market volatility, with its stock rising year-to-date and a market cap of $985 billion, leveraging its low-price leadership and robust e-commerce platform to potentially outperform most stocks in a significant market pullback.
See More
Energy Stocks Surge Amid Escalating Iran Conflict
- Oil Price Surge: The escalating conflict with Iran has led to a more than 44% increase in Brent crude prices over the past month, rising from $107 to a projected range of $150-$200, which has sparked a rush of investment into energy stocks, indicating strong market confidence in the sector.
- Chevron's Strong Performance: Chevron (CVX) shares have risen over 13% during the same period, with a current price-to-earnings ratio of 10.7, exceeding its five-year average of 8.3, reflecting investor recognition of its robust upstream operations in North America and other regions, particularly amid the closure of the Strait of Hormuz.
- Oneok's Growth Potential: Oneok (OKE) stock has increased by 13.7% in the past month, with its diversified midstream assets and over 90% fee-based revenue model providing strong risk mitigation in transporting natural gas and crude oil, projecting that natural gas liquids and gathering will account for 62% of net income by 2026.
- Commitment to Shareholder Returns: Chevron has raised its dividend for 39 consecutive years, currently offering a 3.5% forward yield, while Oneok provides a 4.5% yield with plans for annual growth of 3% to 4%, demonstrating both companies' strong commitment to returning capital to shareholders.
See More
