Oil and Gas: The Warren Buffett Trade (Part II)

Earlier in the month, I wrote about watching investment insiders and following their lead… A key investment strategy that I think you should follow.

Like Gina Reinhart’s decision to buy stakes in several rare earth stocks ahead of surging prices this year.

That was one factor that gave me the confidence to recommend Lynas Rare Earths [ASX: LYC] to my paid readership group.

And I’m glad we did; that stock is up around 180% year-to-date!

As I’ve written previously, insiders are often among the first to identify major investment shifts.

That’s usually at a time when no one believes in the growth story, and why they’re often dismissive of insider buying activity.

Yet, time often proves insiders correct.

As an investor, following insiders means taking on a humble approach… Accepting that we don’t know all the ins and outs of what’s happening in global markets.

You see, insiders often have access to in-house economists and analysts.

That includes specialised experts with industry skills, such as understanding the subtle details in financial reports, or the ability to use high-level software to calculate the future feasibility of a mine.

The bottom line: insiders have access to layers of due diligence that the everyday investor may not even be aware of. Let alone have access to!

Therefore, it pays to monitor the movements of insiders closely.

Tracking Insiders

As I pointed out recently, markets provide disclosure mechanisms that require high-net-worth individuals or corporations to reveal their investment transactions in the market.

In the US, it’s known as the 13F filing requirement.

Thanks to this provision, investors have the opportunity to see what the most liquid and well-connected market players are up to.

A free, easily accessible resource that not enough investors pay attention to.

The 13F requirement discloses what the bigwigs are buying.

And that includes the number of shares purchased with each transaction.

Providing watchful investors with even further insights, such as the level of conviction the ‘insider’ has in a specific stock or sector theme.

So, what does the World’s Most Important Insider Have to Say?

Warren Buffett is respected as one of the world’s greatest investors.

But despite that, very few investors actually take notice (or follow) what Buffett is doing.

I suspect that most investors have never taken the time to review Warren Buffett’s latest 13F filings… And in my mind, that’s an enormous lost opportunity.

So, what has Buffett been up to in recent times?

Earlier this month, the Wall Street Journal reported that Warren Buffett’s Berkshire is in talks to buy Occidental Petroleum’s petrochemical business.

A US oil and gas firm, in which Buffett has gradually been increasing his stake over the last couple of years.

This US-based energy company focuses on oil and natural gas, with operations in the United States, the Middle East, and Latin America.

But if you’d been following his 13F filings in recent years, the announcement wouldn’t have come as a surprise…

Berkshire has been an active buyer of this company, with filings confirming purchases of Occidental shares throughout 2024 and 2025, resulting in a sizable 28% stake.

If the deal goes through, it will be Berkshire’s largest purchase since 2022.

Yet, Buffett has been an active buyer in other energy stocks, including the $325 billion oil and gas giant, Chevron.

Filings show that Berkshire purchased Chevron shares as recently as the second quarter of 2025, increasing its stake by more than 3.4 million shares, or 6.8% of the company.

So, how invested is Buffet in the Energy Theme?

Buying is one thing… However, the level of conviction is another matter.

Here, it’s the ALLOCATION of a portfolio to a particular sector that offers clues to an insider’s faith in an investment thesis.

In terms of Berkshire, Occidental accounts for approximately 4.38% of Berkshire’s entire public equity portfolio, while Chevron makes up 6.8%.

That gives a combined exposure of roughly 11.2%.

No small amount.

However, Berkshire also owns a large utility/energy platform (Berkshire Hathaway Energy), which is not included in these public filings.

Clearly, Buffett has a preference for the traditional energy market, which is a key indication for individual investors to follow.

As global equity markets steam higher, individual investors should be paying close attention to what the world’s most important investor is doing:

Buying oil and gas stocks!

To learn more, I recommend reviewing my latest presentation, which provides a more detailed examination of this emerging opportunity.

And why you should be positioning for this opportunity right now!

You can access the full report for free here.

Until next time.