Warren Buffett Sells 50% of Bank of America Stake and Invests in Chevron Stock

Warren Buffett concluded his illustrious career as CEO of Berkshire Hathaway on December 31, 2025, after more than six decades at the helm . One of the most significant moves in his final quarter was the sale of approximately 50% of Berkshire's BAC stake — roughly 515 million shares — driven by concerns over the bank's valuation. When Berkshire first invested in Bank of America preferred stock in August 2011, shares traded at a 62% discount to book value; by Q4 2025, the stock had reached a 40% premium to book, prompting Buffett to take profits.

Simultaneously, Berkshire deployed approximately $1.2 billion into CVX, adding 8.1 million shares during the quarter . Chevron has been a strong performer, with shares gaining over 20% year-to-date, supported by elevated crude oil prices driven by geopolitical tensions in the Middle East and the company's disciplined capital returns strategy. The Chevron position now totals nearly $24 billion in market value, making it one of Berkshire's largest holdings.

The portfolio rebalancing — rotating from a richly valued financial stock into an energy name with strong cash flow generation — reflects Buffett's classic value investing discipline even in his final act as CEO. For investors watching Berkshire under new leadership, these moves signal a continued emphasis on valuation discipline and sector diversification. The BAC sale also raises questions about whether successor Greg Abel will further reduce the position or maintain the current exposure to financial stocks.