Reuben Gregg Brewer, The Motley Fool

Thu, Jun 12, 2025, 4:35 AM5 min read

• Warren Buffett owns two energy stocks.

• One of his energy investments is a more aggressive growth stock; the other is a shockingly reliable dividend stock.

• Most investors should find the boring income stock to their liking.

• 10 stocks we like better than Chevron ›

Warren Buffett is the incredibly successful CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). The stocks his company owns tend to receive plenty of extra attention from investors who want to mimic his investment approach (and match the level of returns Berkshire manages).

There's a dichotomy today in the energy sector, in which Buffett owns two very different energy stocks. Which of these energy stocks is the better option for your portfolio?

Warren Buffett is the CEO of a company that is run more like a mutual fund than a business. In fact, the conglomerate owns around 200 companies if you include both controlled businesses and publicly traded stocks in the mix. The real key here, however, is that Buffett doesn't tend to get into the day-to-day operations of the businesses in which he's invested.

Like a mutual fund manager, Buffett buys companies when he thinks they are attractively priced. Then he lets the management team run them, only stepping in if asked or when there is a dire need for his input (notably poor performance, for example). Mostly, he just sits back and benefits from the long-term growth of the businesses in which Berkshire is invested.

Buffett's investment approach is important to understand if you are going to use his portfolio as a starting point for your own stock selections. But his penchant for owning stocks for the long term means the current list isn't necessarily filled with stocks you should buy today. That said, the energy sector is a little out of favor right now, so there are potential bargains to be had. Two potential examples are Occidental Petroleum (NYSE: OXY) and Chevron (NYSE: CVX).

Occidental Petroleum is an interesting story because Buffett helped the energy company outbid Chevron for Anadarko Petroleum a few years ago. That purchase ended up being a big stretch for Oxy, as it is more commonly known. When oil prices fell during the coronavirus pandemic, a highly leveraged balance sheet led Oxy to cut its dividend. The dividend is still below where it was prior to the cut. Oxy is very clearly focused on growing its business and has inked several more acquisitions now that its finances are in better shape. This is a stock that more aggressive investors will find attractive.