To The Moon

In 2026, US market’s biggest story did not just centred squarely on AI, it was also about the sudden return of energy risk.

Oil was trading above $102 per barrel as the Middle East conflict is still simmering, with frantic background mediation by Pakistan to nail down a peace deal acceptable to both US and Iran.

As of Fri, 22 May 2026 afternoon (asia time), both Brent Crude and WTI Crude are still trading above the $98 per barrel price range.

US-Iran war is still preventing shipping through the narrow “Strait of Hormuz” waterway in Iran, where about 20% of the world's oil usually passes, although there were isolated incidence of oil tankers exiting successfully the Strait.

With the conflict pushing oil prices up and its ripple effect driving the US 30 year Treasury yield to 5.19% (the highest since July 2007), investors are pivoting and leaning in closer to energy sector once again, a sector that they used to think was outdated.

New CEO Signature Stamp

According to $Berkshire Hathaway(BRK.A)$ latest 13F filing, its new CEO Greg Abel has move aggressively in Q1 2026.

Wall Street has kind of expected BRK.A to winnow the stock portfolio to fewer, more-concentrated holdings. The speed at which the firm has moved - more quickly than expected, was a little alarming for a brief moment.

Its latest 10-Q filing recorded net sales of $8.1 billion, that is composed of $24.1 billion of estimated sales and $16.0 billion of purchases) during Q1 2026.

Berkshire Hathaway has exited 16 stocks in its holdings.

Notable Stocks sold:

• UnitedHealth (UNH) - 5 million shares ($1.5 billion).

• Visa (V) - 8.3 million shares ($2.7 billion).

• MasterCard (MA) - 4 million shares ($2.1 billion).

• Amazon (AMZN) - details below.

• Domino’s Pizza (DPZ) - 3.4 million shares ($1.3 billion).

• Constellation Brands (STZ) - 12.4 million shares ($1.8 billion).

• Aon (AON) - 3.6 million shares ($1.2 billion).

The Others:

• Pool Corp (POOL), Heico (HELA), Liberty Formula One (FWONK), Diageo (DEO)

• Charter Communications (CHTR),Lamar Advertising (LAMR),

  Allegion (ALLE)

• Liberty Latin America Series C (LILAK)

  Atlanta Braves Holdings (BATRK)

Perhaps the biggest surprise was Abel’s disposal of 45.8 million shares of $Chevron(CVX)$, for an estimated $8.2 billion.

This has investors asking:

• Is CEO Abel losing faith in Big Oil ?

• Or is he just reshaping Berkshire’s portfolio for the post-Buffett era?

Zoom-in.

Amazon.

• BRK.A had already reduced its position by -77% in Q4 2025.

• In Q1 2026, the remaining 2.28 million shares (23%) was finally sold off.

• Like it or not, many of the Q1 sales were tied to former Berkshire investing lieutenant Ted Weschler and Todd Combs, with the latter left Berkshire for JP Morgan in December 2025.

Reports suggest Abel might have unwound approx. $14 billion in positions previously associated with Combs.

Chevron - the Biggest Sale

Putting things in perspective, the largest move was not a complete exit.

It is true.

BRK.A has reduced its stake in CVX by -35% to 84.3 million shares, selling 45.7 million shares during Q1 2026 to the tune of more than $8 billion.

However, BRK.A still owns about $17 billion worth of CVX stock. (see below)

That matters because, unlike some of the smaller liquidated holdings, CVX has long been viewed as a Buffett-approved core position, rather than a Todd Combs pick.

It is true that CVX has rewarded shareholders nonetheless.

CVX shares are up almost +22.52% YTD (as of 21 May 2026) and +40.9% TTM as oil prices have surged amid conflict in the Middle East. (see above)

Yet shares have slipped -3.24% (as of 21 May 2026), since the end of Q1 2026, proving how volatile energy markets remain.

CVX Still A Winner.

CVX’s advantage works in both high-price and low-price oil environments.

When crude prices climbed above $100 per barrel, CVX’s upstream drilling operations mint cash.

When prices weaken, its downstream refining and chemicals businesses often expand margins because feedstock costs fall.

In short, CVX has multiple ways to profit regardless of where oil goes.

In Q1 2026, the company has returned $6 billion to shareholders through dividends and buybacks while maintaining production growth following the Hess acquisition.

Just as important, CVX’s break-even oil price remains far below current crude prices, near the mid-$50 range.

With Brent crude recently hovering above $98, profit margins remain wide.

The bigger wildcard is geopolitics.

On 10 May 2026, Saudi Aramco CEO Amin Nasser warned that disruptions in the Strait of Hormuz could impact global oil markets well into 2027, should shipping constraints persist.

Oil tanker traffic through the strait has plunged from around 70 vessels daily to as few as 5, in recent times.

In any case, prolonged supply disruptions would likely support elevated oil prices and of course, CVX’s earnings power.

What Analysts Think ?

Wall Street remains bullish on CVX stock despite the recent run-up. (see above)

Based on 26 analysts’ poll:

• It remains “Moderate Buy” rating.

• Mean price target (PT) is at $214.12 /share.

• As of 21 May 2026 closing, this implies +12.10% potential upside from current levels.

• Meanwhile, a high PT of $236 implies +23.55% potential upside - that is if oil prices remain elevated into 2027.

• At the same time, a low PT of $165 implies a -13.62% downside risk, thanks to CVX’s integrated business model and dividend support.

With current yield at around +3.81%, it remains higher than the broader $S&P 500(.SPX)$’s average forward yield closer to +1.0%.

Investment Facts & Advantage.

Granted, energy stocks always carry commodity risk.

If oil prices collapse, CVX shares would likely retreat with them. If history is anything to go by, it might be back to the $140 - 160, price range ? (see below)

That said, the firm's diversified operations and low break-even costs give it more resilience than many pure-play producers.

The Bottom Line

In short, Greg Abel’s first major quarter running BRK.B portfolio showed investors exactly how willing he is to make bold moves.

Selling 16 stocks outright grabbed headlines but trimming billions worth of CVX while still holding a massive $17 billion stake may tell investors even more.

Berkshire does not appear to be abandoning CVX.

It appears to be managing position size after a powerful rally while keeping exposure to an energy market that could remain tight for years.

And if oil disruptions continue into 2027, CVX may still prove to be one of BRK.B’s most important holdings.

Shopping A, B, C.

The new CEO did not just liquidate stocks per se, he has gone shopping too.

There were 3 major purchases.

(1) $Macy's(M)$.

• Added new positions in Consumer Discretionary sector stock with departmental shops - Macy’s, Bloomingdale's, and Bluemercury, under its belt.

• News of BRK.A purchase of Macy’s sent the stock +5.3% higher after the closing bell, even though it’s worth just $59 million, with the late gain included.

(2) $Delta Air Lines(DAL)$.

• It is the first airline stock in BRK.A’s portfolio since Q12020, when Mr Buffett sold all the company’s shares in DAL, AAL, UAL and LUV.

• BRK.A suffered a loss due to massive reduction in air travel as a result of the COVID-19 pandemic.

• This time round, 39.8 million shares of DAL and its valued at $2.8 billion, as of 16 May 2026.

Read about DAL on my post dated 09 May 2026. click here ! to savour, help to repost ok.

(3) $Alphabet(GOOGL)$

• Abel added a new position in Alphabet Class C (GOOG) shares.

• Topped up more than 3x its stake in existing Alphabet Class A shares.

• Collectively, GOOG & GOOGL got the biggest boost as BRK.A increased the number of shares it owns by +224% in Q1 2026. (see below)

This may be the most dramatic overhaul ever made in Berkshire's portfolio and history.

As of end of Q1 2026, GOOG has become BRK.A’s 7th largest equity holding, with a market value of $16.6 billion and for the short term, the decision to “buy” has been a spectacular success.

This is because GOOG has seen a +38% rally since end of the first quarter, just over 6 weeks ago. (see above)

Parting Thoughts.

It is the dawn of a new era.

The shift in leadership at Berkshire shows a profound evolution from Buffet’s value investing philosophy towards a style optimized for modern market volatility.

Buffet’s classic approach prioritized multi-decade patience, minimal turnover, and a strict avoidance of capital-intensive or highly cyclical sectors.

The new era embraces a faster, more transactional willingness to actively trade macroeconomic cycles.

The evolution also suggests that holding assets indefinitely may no longer be viewed as a virtue in an economy defined by rapid technology integration and sudden geopolitical shifts.

Transformation ultimately highlights a pivot from (1) preserving a legacy-driven portfolio to (2) aggressively weaponizing capital to exploit near-term structural disruptions. Do you agree ?

Remember to check out my other posts. (See below). Help to Repost ok, Thanks.

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• Do you think Abel’s investment strategy is keeping up with time on changing US market behaviour ?

• Do you think this investment strategy is something retail investors like us should consider ? If US market is changing in behaviour & respond, so should we too, no ?

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