Why did Berkshire Hathaway dump 35% of Chevron stock?

May 30, 2026 Letters

Dear Editor,

Berkshire Hathaway recently dumped 35% of its Chevron stock. For legendary investor Warren Buffett, whose favourite holding period for companies is “forever,” this signals serious concerns about Chevron. Berkshire Hathaway had owned almost 7% of Chevron’s stock, which, in the age of index funds, made it a stockholder with significant sway over the company.

The Oil and Gas Governance Network (OGGN) had raised concerns that Chevron’s Guyana subsidiary—which it acquired when it purchased Hess in 2025—is not paying taxes on oil profits and is violating Guyana’s environmental laws (see: https://kaieteurnewsonline.com/2026/04/26/oggn-writes-berkshire-hathaway-inc-on-chevrons-guyana-operations/). Such actions run counter to Berkshire’s stated corporate philosophy.

However, this sell-off of Chevron stock occurred sometime between January and March of 2026, while our OGGN letter to Berkshire Hathaway wasn’t delivered until April 2026. The new Berkshire CEO, who took over at the start of 2026, has focused on AI, as detailed in the company’s annual meeting on May 2. It should be noted that many popular AI platforms, such as Google Gemini and ChatGPT, will indicate that Chevron does not pay taxes on its oil profits in Guyana. What is more interesting is that these AI engines often cite U.S. Senator Sheldon Whitehouse’s webpage regarding ExxonMobil’s Guyana offshore oil contract and its failure to pay taxes on oil profits (see: https://www.whitehouse.senate.gov/news/release/whitehouse-van-hollen-merkley-probe-exxonmobils-guyana-offshore-oil-contract-and-the-companys-u-s-tax-liability/). Hence, it is entirely possible that the new Berkshire CEO came across these tax and environmental issues related to Chevron’s operations in Guyana while using AI.

One could argue that Berkshire was simply reallocating capital to better opportunities when it dumped its Chevron stock. However, there are a few reasons why this was likely not just a normal capital reallocation.

First, Berkshire held about US$20 billion of Chevron stock at the end of 2025. By the end of the first quarter of 2026, Berkshire’s cash pile was approaching US$400 billion. Certainly, Berkshire didn’t need to sell 35% of its Chevron stake just to free up cash to deploy elsewhere.

Second, the Iran War started at the end of February, making all oil-related stocks much more valuable due to the resulting rise in oil prices. With no end in sight for the war, and with oil reserves outside the Strait of Hormuz becoming more valuable by the day, why would one of the world’s legendary investors make a significant cut to its Chevron holdings?

Third, and most telling, is that at the end of 2025, Berkshire had significant holdings in two public oil companies: Chevron and Occidental Petroleum. Berkshire materially added to its Chevron holdings in 2025, but not to Occidental Petroleum. Yet, in 2026, it held onto its Occidental Petroleum shares while souring on Chevron. Some new information must have come to light that caused Berkshire to significantly cut its Chevron stake exactly when the company’s reserves were becoming increasingly valuable. That information has to be worth more than all the potential gains Berkshire will give up by selling the stock.

Berkshire is a company valued at more than US$1 trillion. There is immense prestige in having your company associated with Berkshire Hathaway, especially if Berkshire takes a significant stake. It signals that one of the greatest investors who ever lived considers your company a great investment, which encourages others to buy your shares and drives up your stock price. But it cuts both ways. When Warren Buffett starts significantly reducing his position in your company, others will question what is wrong. They will start using AI to research potential issues that Berkshire might have uncovered—such as Chevron’s Guyana operations violating environmental laws and avoiding taxes.

Darshanand Khusial

Joe Persaud

Kenrick Hunte

On behalf of OGGN a 501(c)(3)

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Berkshire Hathaway, Chevron stock, Guyana Oil, Letters, OGGN

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