Chevron
Investment legend and Berkshire Hathaway CEO Warren Buffett recently revealed a massive stake in Chevron. In fact, the oil and gas gorilla is now Berkshire’s fourth-largest publicly traded holding.
Chevron is at the forefront of the energy boom. In 2021, it produced a total of over 1.8 million barrels of oil and natural gas liquids per day. Meanwhile, the company’s free cash flow has surged by more than 1,000% to $21.1 billion over the past year.
Currently, the stock trades at a price-to-cash flow ratio of 10. It also offers a healthy 3.5% dividend yield.
Invest in real estate without the headache of being a landlord
Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.
The best part? You don’t have to be a millionaire and can start investing in minutes.
Learn MoreOccidental Petroleum
Occidental Petroleum is another big energy bet in Buffett’s portfolio. The Oracle of Omaha added this new position at the start of 2022. Year to date, the stock is up about 97%, so it has worked out well for the billionaire.
Occidental is the largest acreage holder in the highly coveted Permian Basin, with assets concentrated in West Texas and Southeast New Mexico. The company generates a healthy amount of free cash flow — $9.2 billion in 2021 — much of which gets handed back to investors in the form of dividends and buybacks.
OXY has already initiated a $2.5 billion buyback program to reward long-term shareholders. Currently, the stock trades at a still-cheapish price-to-cash flow of 5.
Exxon Mobil
Exxon Mobil is probably the best-known oil stock in the world — for good reason. As one of the largest energy producers in the world (and biggest in the U.S.), Exxon is the definition of a blue-chip giant.
In 2021, Exxon earned $23 billion and generated a whopping $48 billion in operating cash flow. Management also recently initiated a $10 billion share repurchase program.
The stock currently trades at a price-to-free cash flow ratio of 7. Meanwhile, Exxon’s dividend yield still sits at an attractive 4.1%. Investors looking for a solid way to lock in some passive income, while hedging against white-hot inflation, should keep an eye on XOM.
Sign up for our Moneywise newsletter to receive a steady flow of actionable ideas from Wall Street's top firms.
This 2 minute move could knock $500/year off your car insurance in 2025
OfficialCarInsurance.com lets you compare quotes from trusted brands, such as Progressive, Allstate and GEICO to make sure you're getting the best deal.
You can switch to a more affordable auto insurance option in 2 minutes by providing some information about yourself and your vehicle and choosing from their tailor-made results. Find offers as low as $29 a month.
Find the best rate for youMore from Moneywise
- Kevin O’Leary says ‘you’re actually losing money’ in a bank account — do this simple thing with your hard-earned cash instead
- Jim Rogers: Next bear market will be ‘worst in my lifetime’ — he'll rely on 3 assets
- Robert Kiyosaki says we're already in a 'technical depression' — he's using these 3 assets for protection
The richest 1% use an advisor. Do you?
Wealthy people know that having money is not the same as being good with money. Advisor.com can help you shape your financial future and connect with expert guidance . A trusted advisor helps you make smart choices about investments, retirement savings, and tax planning. Try Advisor.com now.
