Berkshire Hathaway is one of the world’s top investment vehicles, a virtual cornucopia of public and private companies that are among the biggest and best in the world. Typically, Warren Buffett is a fan of buying companies he can understand. One thing he clearly understands now is that while a “green environment” is something all of us would like to see, the reality is that demand and the need for oil and petroleum-based products is not going away anytime soon.
Over the past year, Berkshire Hathaway has been buying the shares of Occidental Petroleum Corp. (NYSE: OXY) and, as of this week, the “Oracle of Omaha” has amassed a stunning 20% of the company. Berkshire Hathaway now owns 188,366,460 shares of the stock, and it is a good bet that Buffett could add more. The main point is that with over $11 billion invested in the stock, clearly he and those making investment decisions at his firm think the price of oil is going higher, and demand will remain strong.
Given this huge position, and the prospects for the oil industry going forward, as well as the fact that West Texas Intermediate crude has dropped 30% from the intraday highs printed in March earlier this year, it makes sense for investors to own stock in the sector, especially when the companies pay large and dependable dividends.
We found eight stocks rated Buy across Wall Street that are solid ideas for growth and income investors now. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
BP
This is one of the premier European integrated oil giants and Goldman Sachs analysts are quite positive on the shares. BP PLC (NYSE: BP) engages in the energy business worldwide. It produces and trades in natural gas; offers biofuels; operates onshore and offshore wind power and solar power generating facilities; and provides de-carbonization solutions and services, such as hydrogen and carbon capture, usage and storage.
The company is also involved in the convenience and mobility business, which manages the sale of fuels to wholesale and retail customers, convenience products, aviation fuels, and Castrol lubricants. It is involved in refining, supply and trading of oil products, as well as operation of electric vehicle charging facilities. In addition, it produces and refines oil and gas, and it invests in upstream, downstream and alternative energy companies, as well as in advanced mobility, bio and low carbon products, carbon management, digital transformation and power and storage areas.
Shareholders receive a 4.53% yield. The Goldman Sachs price target for the domestic shares of BP stock is $45. The $36.85 consensus target is closer to the most recent close at $30.57 a share.
Chevron
This integrated giant is a safer way for investors looking to get positioned in the energy sector, and shares have backed up nicely. Chevron Corp. (NYSE: CVX) engages in integrated energy and chemicals operations worldwide.
The Upstream segment is involved in the exploration, development, production and transportation of crude oil and natural gas; processing, liquefaction, transportation and regasification associated with liquefied natural gas (LNG); transportation of crude oil through pipelines; and transportation, storage and marketing of natural gas, as well as operating a gas-to-liquids plant.
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