Warren Buffett's been bargain hunting following the stock market sell-off. Here's the sector he's been buying (and selling)

We check the investing guru's recent buys and sells.

Key points
  • Global markets have tumbled in 2022 and champion investor Warren Buffet is buying the dip, spending billions on shares over the last few months
  • His investment vehicle Berkshire Hathaway has snapped up notable new holdings in dividend-paying energy stocks in 2022
  • It has also offloaded some investments in the healthcare sector

The legendary Warren Buffett has famously been quoted as saying, "be greedy when others are fearful" and the $161 billion investor is seemingly following that advice amid the latest stock market sell-off.

The 'Oracle of Omaha' has been making the most of the downturn, snapping up billions of dollars' worth of stock through Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B) over the past few months.

Interestingly, some of his major buys have fallen into one sector. At the same time, the famous investor has been offloading holdings in another.

Legendary share market investing expert and owner of Berkshire Hathaway, Warren Buffett.

Image source: The Motley Fool

What sectors has Buffett been buying and selling?

This year has been off to a rough start for many market enthusiasts – but not for Buffett.

The Dow Jones Industrial Average has slipped around 11% in 2022. Meanwhile, the S&P 500 has tumbled nearly 15%.

But it's the Nasdaq Composite that's suffering most. It has plunged 24% this year.

Thankfully, the S&P/ASX 200 Index (ASX: XJO) is outperforming the lot, sliding just 6% year to date.

The situation might look dire but it seems it may be Buffett's time to shine. And he's looking to the energy sector for new wins.

Buffett buys: Energy sector

A recent regulatory filing shows the multibillionaire investor has jumped on board Occidental Petroleum Corporation (NYSE: OXY) and quadrupled his stake in Chevron Corporation (NYSE: CVX) in 2022.

The oil and gas producing companies have been outperforming lately. Their share prices have gained 118% and 45% respectively year to date. They also both pay dividends.

Similar stocks on the ASX include Woodside Petroleum Ltd (ASX: WPL).

As of its previous close, the S&P/ASX 200 Energy Index (ASX: XEJ) has gained 37% in 2022 and was trading with a 6% dividend yield.

Mixed: Financials stocks

Berkshire Hathaway also recently snapped up new positions in financial stocks Citigroup Inc (NYSE: C) and Ally Financial Inc (NYSE: ALLY).

Though, the investment house has ditched its former major holding in bank Wells Fargo & Co (NYSE: WFC).

Buffett sells: Healthcare shares

It has also dumped many a healthcare stock.

Biopharmaceutical shares AbbVie Inc (NYSE: ABBV) and Bristol-Myers Sqibb Co (NYSE: BMY) were shown the chopping block while Berkshire Hathaway's holding in Royalty Pharma (NASDAQ: RPRX) was also stripped back.

However, it's worth noting Buffett has steadily held other notable healthcare stocks such as Johnson & Johnson (NYSE: JNJ) and Proctor & Gamble Co (NYSE: PG) over the last few months.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway (B shares) and Bristol Myers Squibb. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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