Buffett's Strategic Moves Before Retirement: Major Cuts to Bank of America
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 13 2026
0mins
Should l Buy CVX?
Source: Fool
- Reduction in Bank of America Holdings: Buffett cut Berkshire's stake in Bank of America by half, selling 515,556,072 shares, which represents approximately 50% of its original 1.03 billion shares, indicating sensitivity to market changes and a reassessment of company valuation.
- Consistent Net Selling of Stocks: Over the past 13 quarters, Buffett has been a persistent net seller of stocks, totaling around $187 billion, reflecting a more conservative investment strategy amid increasing market uncertainty.
- Significant Bet on Chevron: In his final quarter before retirement, Buffett invested approximately $1.2 billion to acquire 8,091,570 shares of Chevron, which is expected to yield around $300 million in unrealized profits, demonstrating his confidence in the energy sector.
- Changing Market Dynamics: With the Federal Reserve entering a rate-easing cycle, Bank of America's interest income may decline, and Buffett's decision to reduce holdings reflects his deep insights into future market conditions and strategic adjustments to his investment portfolio.
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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: 197.410
Low
158.00
Averages
176.95
High
206.00
Current: 197.410
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.
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- Strong Profitability: Despite oil prices exceeding $100 per barrel, Chevron maintains high profitability with a breakeven level below $50 per barrel, demonstrating flexibility in capital expenditures and dividend payments, having recently increased its dividend for the 39th consecutive year.
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See More
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- Chevron's Stock Lag: Although Chevron's stock has risen about 40% this year, it has not kept pace with crude oil prices due to market expectations of an end to the war and falling oil prices, leading to cautious investor sentiment regarding its future performance.
- Capital Spending Strategy Shift: Chevron has set its 2026 capital spending budget at $18 to $19 billion, focusing on high-return opportunities, and if the war escalates and damages more energy infrastructure, it is expected to increase investments in U.S. shale to quickly address global supply shortages.
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- Friendship Breakdown: In an interview, Buffett stated he has not spoken to Gates since the Epstein revelations, suggesting their friendship may be over, which could affect the future functioning of the Gates Foundation.
- Uncertain Donation Commitment: Buffett mentioned he will “wait and see what unfolds” regarding his donations, leaving the foundation's financial future uncertain and potentially jeopardizing its charitable initiatives.
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See More
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- Market Resilience: Chevron's oil and gas primarily sourced from the U.S., Kazakhstan, and Australia provides relative insulation from Middle Eastern conflicts, and rising oil prices will enhance its upstream profits, generating more cash for dividends and buybacks while improving the economics of its costly megaprojects.
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See More
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- Future Growth Potential: Analysts expect Chevron's EPS to grow at a 16% CAGR from 2025 to 2028, primarily driven by the expansion of the Tengiz Field in Kazakhstan and ongoing development in the Permian Basin, which will significantly enhance its profitability.
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See More
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- Rising Flight Prices: Since the onset of the Iran conflict, jet charter prices have surged by an average of 5% to 15%, with some flights experiencing increases of up to 20%, leading affluent travelers to face unexpected fees, although they are generally less sensitive to price fluctuations.
- Steady Market Demand: Despite soaring fuel prices, the private flying market remains robust, with WingX reporting a 5% year-over-year increase in flights for the week ending March 22, and Flexjet noting a 15% rise in utilization among fractional owners, indicating sustained demand from high-net-worth clients.
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