Warren Buffett demonstrates once again why he is called the Oracle of Omaha. While the S&P 500 is reeling, the actions of Berkshire Hathaway (BRK.A -0.93% ) (BRK.B -1.11% ) they have jumped about 17% year to date.
A large part of Berkshire’s impressive gain is due to even better performance by the individual stocks in its portfolio. Here are four Buffett stocks that are absolutely taking the market by storm.
Buffett led Berkshire to invest first in Chevron (CLC -3.62% ) in 2020. Shares in the oil and gas giant plunged (as did many other stocks) during that period with the onset of the pandemic.
But the dynamics of the oil and gas industry are very different now than they were then. Chevron ranks as Buffett’s biggest gainer so far in 2022 (excluding stocks Berkshire added after the start of the year). His shares have soared almost 50% so far this year.
Buffett appears to remain bullish on Chevron, at least as of Berkshire’s latest regulatory filing detailing its holdings. Chevron was one of four stocks in Berkshire’s portfolio for which it added shares in the fourth quarter of 2021.
Chevron isn’t the only hot energy stock in Buffett’s lineup. Actions of suncor energy ( HIS -5.37% ) they have soared close to 40% so far this year.
Suncor is best known for pioneering the development of the Athabasca oil sands in Canada. Russian oil and gas import bans and a recovering global economy have proven to be a winning combination for the Calgary-based company.
In 2021, Suncor claimed a retail market share of around 20% in Canada. The company is also a major supplier of oil to the US market thanks to pipelines that transport its products from western Canada directly to major refineries in Cushing, Oklahoma; and Houston.
Kroger (KR -1.56% ) It’s certainly not known as a high-growth stock. Yet shares of the supermarket chain are up almost 30% so far this year, making Kroger one of Buffett’s best performers.
It is not difficult to understand why. Investors have turned to safer stocks as volatility has increased. Kroger falls into that category as consumers need food regardless of what happens in the stock market or around the world.
But Buffett cut Berkshire’s stake in Kroger in the fourth quarter of 2021. It wouldn’t be surprising to see him do it again, considering the stock may be getting too expensive as it now trades at a forward earnings multiple well above peers. Kroger. .
4. Bristol Myers Squibb
bristol myers squibb (BMY -0.91% ) stands out as another big winner for Buffett who doesn’t seem to like him as much as he has in the past. The stock is up more than 20% so far in 2022. But Berkshire cut its stake by 76% in the fourth quarter of 2021.
Big Pharma stocks can be more attractive to investors when markets are choppy. Bristol Myers has likely benefited from this to some degree. However, the company has also enjoyed good news as it secured US and European approvals for new indications of the cancer drug Opdivo.
Arguably the best news for the company in 2022, however, was its overwhelmingly positive clinical results for the heart failure drug mavacamten. Analysts believe the drug could generate sales of $1.7 billion by 2026 if approved.
Editor’s Note: An earlier version of this article incorrectly stated that Berkshire first bought Chevron during the first quarter of 2020. The Fool regrets the error.
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