Recent reports suggest Geraldine Slattery, currently president of Australia for BHP Group Ltd (ASX: BHP), is being considered for the chief executive role at Woodside Energy Group Ltd (ASX: WDS).

The situation has drawn attention because Slattery is also viewed internally as a possible successor to current BHP chief executive Mike Henry.

At the time of writing, the BHP share price is $51.77, up 1.05%, while the Woodside share price is $30.07, down 0.36%.

Let's take a closer look at what we know so far.

A leadership crossroads for two resources giants

Slattery is widely seen as one of Australia's most experienced resources executives, with senior roles across both the mining and energy sectors.

She currently leads BHP's Australian operations and has played a key role in shaping the company's domestic strategy.

Speculation has been building around BHP's future leadership, with Slattery reportedly viewed as a leading internal candidate if Mike Henry eventually steps down.

If appointed, she would become the first woman to lead BHP in the company's 140-year history.

At the same time, her name has also been linked to Woodside's search for a permanent chief executive.

The oil and gas producer is continuing its leadership transition following the departure of former CEO Meg O'Neill.

Woodside weighing internal and external candidates

Woodside's board is expected to appoint a new chief executive in the coming months as it reviews both internal and external candidates.

Several senior leaders inside the company are already seen as strong contenders.

These include acting chief executive Liz Westcott, chief commercial officer Mark Abbotsford, and chief operating officer for international operations Daniel Kalms.

A number of external candidates have also been mentioned in industry discussions.

Slattery is considered one of the leading outside contenders given her experience working across major energy assets, including projects previously operated by BHP.

Another name linked to the process is Nigel Hearne, chief operating officer at Harbour Energy plc (LSE: HBR) and a former Chevron Corporation (NYSE: CVX) executive.

Leadership decision could shape Woodside's next phase

Whoever takes the role will inherit a company that has expanded significantly in recent years.

Woodside's merger with BHP's petroleum business reshaped the company and created one of the largest independent oil and gas producers listed on the ASX.

The company is now progressing major developments including the Scarborough gas project and the Pluto Train 2 LNG expansion.

These projects are expected to play an important role in lifting production in the years ahead.

Industry observers say the next chief executive will help guide Woodside through the next phase of global energy demand.

The post BHP and Woodside linked in CEO race as top executive emerges as contender appeared first on The Motley Fool Australia.

It's no secret why this oil-based ETF has fared so well.

A futures ETF?

The BetaShares Crude Oil ETF is a rather unique ASX fund. Rather than holding a portfolio of underlying stocks or bonds, as most ETFs do, it instead offers investors exposure to a portfolio of futures contracts. Futures contracts are derivatives that represent the value of a commodity, to be delivered in the future, at a price determined in the past or present. They are commonly used by both businesses and investors to mitigate risks associated with volatile commodities.

To illustrate, an oil-based futures contract might stipulate that 1,000 barrels of crude oil are to be delivered on 31 December 2026 at a price of US$60 per barrel. If the contract was made when oil prices were at US$60 a barrel, and the oil price rises to US$80 soon after, then that contract's value just increased. Of course, it works the other way as well.

The OOO ETF holds a basket of these contracts. Given the sharp increase in the price of oil this week as a result of the new US-Iran war, it's no surprise to see the value of OOO units rise rapidly in response.

We've also seen other energy-focused ASX ETFs react similarly on the ASX this week. One example is the BetaShares Global Energy Companies Currency Hedged ETF (ASX: FUEL). This ASX ETF doesn't hold futures contracts. Instead, it opts for the traditional ETF model of holding an underlying portfolio of global energy stocks like Chevron, ConocoPhillips, Shell and ExxonMobil. FUEL units have risen by almost 6% over the past month.

Is it too late to buy funds like OOO and FUEL?

Investors might be looking at these gains and wondering whether it's worth jumping on this train.

While it might be tempting to look at what's going on with oil prices and conclude that either OOO or FUEL might be a good way to insulate your ASX share portfolios, I think that would be a mistake.

Oil is a highly volatile commodity at the best of times. But this volatility has reached unprecedented heights over the past week. On any given day now it seems, oil can move by double-digits in either direction. Whilst you might be able to time a trade perfectly to take advantage of one of these upswings, there's just as likely a chance that you can be caught out by a downturn. You may as well go down to the casino and put it all on red.

Further, commodity-specific ETFs like OOO and FUEL tend to charge relatively high management fees and deliver low long-term gains. At least compared to market-wide index funds.

As such, I think ASX investors would be better off finding high-quality companies that compound their earnings every year and buying them at a good price over trying to take advantage of the whipsawing energy prices that we are seeing.

The post Up 30% in a month: Is it too late to buy the BetaShares Crude Oil ETF (OOO)? appeared first on The Motley Fool Australia.

Berkshire did report some of its latest financials for the quarter ending 30 September 2025 more than two weeks ago. However, this report only told us that Buffett was a net seller of stocks over the quarter. We didn't know exactly which stocks he, or his two investing lieutenants, had actually been buying and selling.

Well, today, that veil has been lifted. Thanks to the company's most recent '13F' filing, we get to have a good look at what's been happening in the Berkshire portfolio.

What has Buffett been buying at Berkshire?

Well, as we've already established, Buffett did a whole lot more selling than buying. Many of Berkshire's top holdings were trimmed. This includes a significant US$10.6 billion sell-down of Apple shares, representing about 15% of Berkshire's position.

Even so, the iPhone-maker remains Berkshire's largest holding, with the company retaining a US$64.9 billion stake. That's roughly 21% of Berkshire's portfolio.

Berkshire also offloaded meaningful chunks of Bank of America, Verisign and D.R. Horton.

Although Buffett, or his underlings, were net sellers of stocks, they were still picking up some shares.

As my Fool colleague Kevin reported earlier today, the most significant new position for Berkshire was in Google-owner Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL). The filing shows that Berkshire initiated its first-ever position in Alphabet over the September quarter. The company recorded a US$4.34 billion position, or just over 17.8 million Class A shares, in Alphabet, as of 30 September.

Who really bought Alphabet stock?

This is a significant development for Berkshire, as Buffett has always shown, and discussed, a reluctance to invest in tech stocks. He famously pined about missing out on Alphabet's success back in 2019, and only initiated a small position in Amazon that same year.

Even the purchase was reportedly initiated by one of Buffett's lieutenants, Todd Combs or Ted Weschler. It's possible, even perhaps likely, that one of those two managers is responsible for the Alphabet purchase. Or perhaps it was a call made by the incoming CEO, Greg Abel. Abel is due to take the reins of Berkshire in January when Buffett sadly is scheduled to step back from the CEO role he has held since the 1960s.

We probably won't find out for a while, if at all.

Some other stocks Berkshire added to over the quarter just gone include Chubb, Domino's Pizza and Sirius XM.

Berkshire's five largest positions remain, in order: Apple, American Express, Bank of America, Coca-Cola and Chevron.

The post Here are the stocks Warren Buffett just bought (and sold) appeared first on The Motley Fool Australia.

But even so, I still own quite a few shares that pay meaningful dividend income every year. As it happens, most of these investments have also delivered meaningful capital growth. Today, let's discuss the biggest dividend payers in my personal portfolio.

The three biggest dividend payers in my ASX share portfolio

MFF Capital Investments Ltd (ASX: MFF)

First up is the listed investment company (LIC), MFF Capital. MFF, like most LICs, invests in an underlying portfolio of shares. In this case, it is mostly American stocks. This LIC is run by Magellan Financial Group Ltd (ASX: MFG) co-founder Chris McKay. I like Mackay's Buffett-esque habit of buying high-quality companies at decent prices, and holding them for as long as possible.

Some of MFF's entrenched tenants include Mastercard, Visa, Amazon and Bank of America.

What's great about MFF is that it pays a strong, fully franked and rising dividend, despite its low-yield portfolio. Between 2021 and 2024, the company raised its annual (fully franked) payouts from 6.5 cents to 13 cents per share. Today, the company trades with a dividend yield of just under 3.4%, although I am lucky to have a yield-on-cost far higher than that. As such, MFF is one of the largest dividend payers in my ASX portfolio today.

Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO)

Next up, we have an entrant in this exchange-traded fund (ETF) from popular provider Vanguard. The Vanguard Australian Small Companies ETF. This index fund tracks around 170 shares from the smaller end of the ASX spectrum. I find it complements a classic index fund like the Vanguard Australian Shares Index ETF (ASX: VAS) that I also hold rather well.

It might not seem like it, but this ETF has paid me some massive dividends in recent years. When this ETF pays out its next dividend distribution on 16 July later this month, investors will have enjoyed a total of $5.37 in dividend distributions per unit. At the current VSO price of $68.40, this equates to a monstrous yield of 7.85%.

Schwab US Dividend Equity ETF (NYSE: SCHD)

Finally, a US-based ETF rounds out my portfolio's most lucrative dividend stocks. The Schwab US Dividend Equity ETF is a fund that holds a large portfolio of US stocks that all demonstrate reliable and rising dividend income potential. It holds a range of shares in this endeavour, including Texas Instruments, Chevron, PepsiCo, Altria and Coca-Cola.

Since SCHD ETF tends to hold only stocks that raise their dividends like clockwork, it can offer the same to its investors. I've only owned this ETF for a year or so, but already, my dividend income has risen meaningfully. Today, thanks in part to its dividends coming in US dollars, it is a major, and welcome, income payer in my portfolio.

The post Here are the 3 biggest dividend payers in my ASX stock portfolio today appeared first on The Motley Fool Australia.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed yesterday trading for $23.55. In morning trade on Thursday, shares are swapping hands for $23.16 apiece, down 1.7%.

For some context, the ASX 200 is down 2.0%, following steep losses in US stock markets overnight.

So far, investors have yet to react positively to Woodside's announcement this morning that the company is working to simplify its portfolio.

Woodside share price dips despite Chevron agreement

The Woodside share price is in the red despite the company reporting that it's agreed to an asset swap with Chevron Corp (NYSE: CVX).

Under the deal, Woodside will acquire Chevron's interest in the North West Shelf (NWS) Project, the NWS Oil Project, and the Angel Carbon Capture and Storage (CCS) Project.

In return, Woodside will transfer all of its interest in the Wheatstone and Julimar-Brunello Projects to Chevron and make a cash payment of up to $400 million to Woodside.

"The strategic and commercial rationale for this asset swap is compelling for Woodside," Woodside CEO Meg O'Neill said.

Highlighting the potential future benefits for the Woodside share price, the company noted that the transaction will:

• Streamline Woodside's Australian portfolio and consolidate its focus on operated LNG assets
• Simplify Woodside's NWS joint venture ownership, unlocking economic recovery of existing production and future development opportunities
• Strengthen near-term cash flow to support dividends for shareholders and ongoing investments

"This transaction simplifies our portfolio, improving our focus and efficiency by consolidating our position in our operated LNG assets," O'Neill said. "It is immediately cash flow accretive and includes a cash payment upon both execution and completion."

O'Neill added:

This year, the North West Shelf Project and its Karratha Gas Plant celebrated 40 years of operations. The Western Australian government's recent decision to extend the environmental approval for the North West Shelf Project supports its ongoing contribution to reliable energy supply for local and global customers.

This transaction creates greater opportunity to fill emerging processing capacity and maximise value accretive recovery from the North West Shelf Project. It also provides greater alignment and improves the commercial prospects for the proposed Browse to North West Shelf Project.

With an eye on mitigating climate change, O'Neill noted that the deal with Chevron will improve joint venture planning for decarbonisation opportunities at the Karratha Gas Plant.

"Our increased equity in the Angel CCS Project also supports future development of this large-scale, multi-user carbon capture and storage hub in Western Australia," she said.

Facing headwinds from slumping oil prices, the Woodside share price is down 26% in 2024.

The post What's happening with the Woodside share price following a key agreement today? appeared first on The Motley Fool Australia.

If there's one person in finance that almost everybody knows about it's probably Warren Buffett, the CEO of Berkshire Hathaway. His long-term investment success is nothing short of incredible.

Recently he's been selling Chevron (NYSE: CVX) and buying Occidental Petroleum (NYSE: OXY), but you should probably stick with Chevron. And maybe avoid Occidental Petroleum.

Here's why Buffett's decision is fine for him, but probably not right for your portfolio.

The energy sector is volatile

Before getting into the differences between Chevron and Occidental Petroleum (usually just called Oxy), it's important to discuss the broader energy sector within which they operate.

Oil and natural gas are commodities known for dramatic and often swift price swings. A great many things can impact energy prices, including supply, demand, economic growth, recessions, and geopolitical events. When oil prices rise, energy companies like Chevron and Oxy tend to perform better on the top and bottom lines. When energy prices fall, the reverse is true.

That said, some companies have proven better able to handle the industry's swings. Many of them are integrated energy companies.

Both Chevron and Oxy would be classified as integrated, with assets that span from the upstream (energy production) through the midstream (pipelines) and to the downstream (refining and chemicals). Each of these segments of the industry performs differently at different points in the energy cycle. When put together, they tend to soften the swings.

Chevron and Oxy are not interchangeable

Here's the thing. Chevron is an industry giant sporting a market capitalisation of around $270 billion. Occidental Petroleum is large, but still much smaller than Chevron, with a market cap of roughly $50 billion. Oxy has material aspirations to be a bigger player, which is why Warren Buffett invested in the business in the first place, helping the company beat Chevron in a bidding war for Anadarko Petroleum.

Recently, Buffett has been buying Occidental while selling Chevron (he still owns them both; he's just shifting between the two), suggesting he sees more long-term appeal in the smaller but growing energy company.

However, there's a major caveat for average investors. Oxy's approach is extremely aggressive. It took on too much debt when it bought Anadarko and ended up having to cut its dividend when oil prices tumbled shortly thereafter. Chevron, by comparison, has increased its dividend every year for 37 consecutive years. That's an incredible record in an industry that's known for its volatility.

Notably, Chevron also has an attractive 4.4% dividend yield. That's well above the 1.6% you'll collect from Occidental Petroleum and the 3.3% of the average energy stock, using Energy Select Sector SPDR ETF as an industry proxy. In fact, Oxy's dividend still hasn't recovered to its pre-cut level.

To be fair, the upheaval after the Anadarko acquisition has resulted in management operating more conservatively. For example, debt reduction was a prime talking point when it announced its more recent acquisition of Crown Rock (a much smaller deal). But the fact still remains that Chevron is in a stronger financial position than Oxy.

CVX Debt to Equity Ratio data by YCharts

In fact, Chevron has one of the lowest debt-to-equity ratios in the integrated energy arena. For most small investors, it simply makes more sense to buy a large, diversified energy company with a long track record of dividend growth supported by a strong balance sheet, especially if you compare it to a smaller peer with more leverage and a history of dividend cuts and overreaching.

What's good for Buffett may not be good for you

Warren Buffett's portfolio is gigantic and he is holding on to a huge cash position. He can afford to take risks that small investors probably shouldn't.

For conservative income investors, Occidental Petroleum is that risky, smaller company.

If you are looking for a reliable dividend stock in the energy patch, Chevron and its above-industry-average 4.4% yield is very much worth buying and holding for the long term.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 1 Warren Buffett stock to buy hand over fist and 1 to avoid appeared first on The Motley Fool Australia.

Sir John Templeton's quote below perfectly captures how investor emotions influence the market's ups and downs. He famously said:

Bull markets are born on pessimism, grow on scepticism, mature on optimism, and die on euphoria.

Similarly, Warren Buffett advises to be greedy when others are fearful and the vice versa, emphasising the importance of reading market expectations and participants' emotions.

In this article, I'll use Howard Marks' market cycle concept to determine where we might be in the share market right now. I'll also examine what other famous investors are saying and positioning for the cycle.

Second year of the bull market

Howard Marks, co-founder of Oaktree Capital Management, uses several key indicators to understand the market cycle. These include investor sentiment, valuation levels, credit availability, risk appetite of investors, and market behaviour.

To sum up, in his bestselling book Mastering the market cycle, he says opportunities for investment gains improve when:

• The economy and company profits are more likely to swing upward than down
• Investor psychology is sober rather than buoyant
• Investors are conscious of risk or — even better — overly concerned about risk
• Market prices haven't moved too high.

Based on these factors, it's safe to say that we are no longer in a bear market, with the overall market sentiment being positive. So if we're not in a bear market, where exactly are we in the share market cycle?

Ken Fisher, Fisher Investments' founder and a son of respected investor Philip Fisher, sees further upside in the US stock markets from here. In June, he said:

Once a market that's had a bear market has hit a bottom and gotten to become a one-year old, it almost always gets to be a two years old. We're in that second year now from the bottom in October 2022.

Another useful sentiment indicator is the VIX index (INDEXCBOE: VIX). Nicknamed the 'fear gauge,' the VIX Index measures how much the S&P 500 Index (SP: .INX) is expected to fluctuate over the next month.

A high VIX indicates anticipated market changes due to uncertainty or fear, while a low VIX suggests stable conditions.

The VIX index has ranged from 10 to 79 and is currently at 13.33, implying some investor optimism. For context, the VIX index hit 65.5 at the peak of the COVID-19 pandemic in March 2020.

What does this all mean to investors?

While we wouldn't encourage anyone to dramatically change their share portfolios based on the market outlook alone, it's worth noting that some market sectors may be starting to look expensive.

Fisher suggests growth stocks tend to do better in the early bull cycle, and high-quality value stocks — such as energy shares or luxuries — outperform in the later part of the upcycle and into a downcycle. His latest trading history appears to confirm that he's expecting this bull market to continue.

According to the May 2024 filing to the US Securities and Exchange Commission (SEC), Fisher Asset Management's top holdings were dominated by 'big tech' shares like Microsoft Corp (NASDAQ: MSFT), Apple Inc (NASDAQ: AAPL), and Nvidia Corp (NASDAQ: NVDA) as of the end of March 2024.

It's worth noting that the fund didn't actively add to these positions, however. The fund also has positions in other value shares, including energy stocks.

This is similar to Warren Buffett's Berkshire Hathaway Inc (NYSE: BRK.B), which has also built a fairly large position in energy stocks, including Chevron Corp (NYSE: CVX) and Occidental Petroleum Corp (NYSE: OXY).

In conclusion, some investors believe we haven't yet reached the 'euphoria' phase. So, keep dancing, but always know where the exit is if the music suddenly stops.

The post Where are we in the share market cycle? appeared first on The Motley Fool Australia.

The 10F filing from Warren Buffett's Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B) is probably one of, if not the, most anticipated on the entire American stock market.

The last time Berkshire Hathaway filed a 10F report, we covered some of Buffett's significant stock sales, as well as the far fewer buys.

So what does the latest report tell us?

What has Berkshire Hathaway been buying (and selling)?

Compared to the November 10F, this February's report was far tamer. However, Buffett was still a net seller of stocks over the three months to 31 December.

Here are some of Berkshire's major sales, according to WhaleWisdom:

• HP Inc (NYSE: HPQ), with Berkshire selling US$2.4 billion worth of stock
• Apple Inc (NASDAQ: AAPL), US$1.93 billion sold
• D.R. Horton Inc (NYSE: DHI), with US$710 million sold
• Paramount Global Inc (NASDAQ: PARA) with US$450 million sold
• Markel Group Inc (NYSE: MKL) with US$259 million sold

In contrast, Buffett's buys were a lot less enthusiastic:

• Chevron Corp (NYSE: CVX), with Berkshire buying US$2.36 billion worth of stock
• Occidental Petroleum Corp (NYSE: OXY), US$1.17 billion purchase
• Sirius XM Holdings Inc (NASDAQ: SIRI), US$167 million purchase

Buffett doubles down on big oil

This is an interesting report to go through. Buffett is famous for his buy-and-hold investing, once commenting that his favourite holding time for an investment is "forever". So it's interesting to see Berkshire trim its largest position (accounting for more than 50% of Berkshire's portfolio) in Apple. Of Course, US$1.9 billion is something of a drop in the bucket – Berkshire still owns almost US$166.5 billion worth of Apple stock.

But the sale is still significant, given what Buffett has previously said.

Also significant is Buffett's buyup of oil giant Chevron, as well as Occidental. Last quarter's 10F filing revealed that Berkshire had offloaded shares in Chevron. As such, it's notable to see Buffett buying them back up, as well as shares in fellow oil stock Occidental. The recent volatility in oil prices (and thus the share prices of oil stocks) could have something to do with this.

Buffett's other major sale was in tech company HP. HP shares haven't gone anywhere for a while but did rally around 20% between October and December last year. So perhaps this gave Buffett an excuse to sell a big chunk of shares.

Foolish takeaway

Buffett's portfolio moves often seem to contradict the advice that he so generously showers on ordinary investors. Because we rarely get explanations or insights into Buffett's thinking (and if so, they usually come months later), I tend to think it's best to take what Buffett says as gospel advice, rather than what he does.

The post What can ASX investors learn from Warren Buffett's latest buys and sells? appeared first on The Motley Fool Australia.

In fact, the last dividend Berkshire paid out was back in the 1960s. Buffett has even joked that he must have been in the bathroom when the payment was approved.

Ever since then, Berkshire shareholders haven't received a single dollar of dividend income.

But that doesn't mean Buffett himself is averse to receiving dividends. In fact, Berkshire is probably one of the largest single recipients of dividend income in the world. Our Foolish colleagues in Buffett's home country of the United States estimated back in June that Berkshire is on track to bank more than US$6 billion in passive dividend income over the coming 12 months.

What's even more mindboggling is that it is estimated that US$5.17 billion of that passive income will be coming from just seven underlying shares in Berkshire's portfolio.

Those Berkshire bankrollers are as follows:

• Occidental Petroleum Corp (NYSE: OXY)
• Bank of America Corp (NYSE: BAC)
• Apple Inc (NASDAQ: AAPL)
• Chevron Corporation (NYSE: CVX)
• Coca-Cola Co (NYSE: KO)
• Kraft Heinz Co (NASDAQ: KHC)
• American Express Company (NYSE: AXP)

So Buffett is someone who evidently knows a thing or two about building a stream (in this case a raging torrent) of passive income.

But how can we take Warren Buffett's experience to our own ASX and build a stream of passive income from ASX dividend shares that will last a lifetime, as Buffett's has?

Building a Buffett-inspired passive income portfolio

I think there are two key lessons here.

The first is that investors should find high-quality dividend payers that have the financial strength to raise their dividends over time in a meaningful, inflation-beating way.

Take Apple and Coca-Cola. Apple only started paying its investors dividends in 2012. But since then, it has increased its annual payouts substantially every year. Just this year, the technology titan boosted its quarterly dividend payouts by 4.35% from 23 US cents a quarter to 24 US cents.

Meanwhile, Coca-Cola has one of the best dividend growth streaks in the world, having just raised its annual dividend for the sixtieth (yes, 60) year in a row.

The second is that investors should seek a wide range of these quality passive income payers. You'll notice that of those seven Berkshire bankrollers listed above, two are oil shares (Chevron and Occidental), one is a tech stock (Apple), two are financials stocks (Bank of America and American Express), and two are consumer staples giants (Coke and Kraft-Heinz).

Buffett, and Berkshire by extension, is thus able to rely on a wide range of top-tier companies that all operate in different corners of the market. This reduced the portfolio's single-sector risk substantially and ensures that Berkshire's stream of passive income remains strong.

I myself attempt to incorporate these two lessons into my own passive income portfolio. That's why I invest in a range of high-quality shares like Washington H. Soul Pattinson and Co Ltd (ASX: SOL), Wesfarmers Ltd (ASX: WES), National Australia Bank Ltd (ASX: NAB), MFF Capital Investments Ltd (ASX: MFF), Telstra Group Ltd (ASX: TLS), and Endeavour Group Ltd (ASX: EDV).

Collectively, I hope these companies will be half as kind to me in terms of generating passive income as Buffett's investments have been to him.

The post Here's how I'd use the Warren Buffett method to target lifetime passive income from ASX shares appeared first on The Motley Fool Australia.

Woodside shares are having a strong start to the day's trading indeed. Right now, this ASX 200 energy share is up a robust 1.51% from yesterday's closing price of $38.29 and trading at $38.87 apiece at the time of writing.

That puts the Woodside share price up by 10% year to date in 2023 so far, and up 22.3% over the past 12 months.

There's little doubt about what's behind these gains. Overnight, oil prices have surged. As we flagged this morning, West Texas Intermediate (WTI) crude oil has risen by 1.6% to US$84.26 a barrel, while Brent crude is up 1.5% to US$87.46 a barrel. That's the highest level for oil that we've seen in 2023 to date.

As an oil share, Woodside is highly sensitive to the movements of oil prices. Any commodity-based company's costs are relatively fixed. So when the price of the underlying commodity — in this case, oil — rises, Woodside is able to direct those higher revenues almost straight to its bottom line.

But there's something else to discuss today as well.

Woodside share price rises despite possible worker strike

Woodside's share price gains come amid news that some of its workforce are preparing to put down their proverbial tools.

According to reporting from Reuters, workers at both Woodside's and US energy giant Chevron's liquified natural gas (LNG) facilities in Australia voted to strike yesterday. 99% of the 180 persons employed at Woodside's facilities have reported voted in favour of industrial action, which includes the possibility of indefinite strikes.

The report also reveals that this news is already having major impacts on global gas prices.

But this news doesn't appear to be worrying investors on the markets today, judging by Woodside shares' healthy price rises on display.

Woodside is scheduled to report its earnings later this month on 22 August, so watch out for a possible big share price move then.

The post Woodside share price surges amid potential strike action appeared first on The Motley Fool Australia.

He's the poster boy for growth investing, perhaps more precisely growth-at-a-reasonable-price (GARP). 

However, if you look closely at how his investment vehicle Berkshire Hathaway Inc (NYSE: BRK.A) rakes in dividends, you might think differently.

The Motley Fool US reported earlier this year that the company is due to collect a whopping US$6.1 billion of dividends in 2023 from just a handful of stocks.

Recently The Motley Fool US' Keith Speights profiled five of these income stocks that Buffett relies on.

For those Australians that dabble in ASX shares, it's easy enough to try to replicate what the world's most famous investor does.

Here are my five ASX dividend shares that are similar to Buffett's beauties:

1. Apple Inc

The tech giant is Berkshire Hathaway's largest position currently.

Within the ASX, I think online jobs classifieds platform Seek Ltd (ASX: SEK) has similar qualities to Apple Inc (NASDAQ: AAPL).

Seek has been one of the leaders in the Australian technology scene over the past 26 years, and has delivered much handsome capital growth for investors.

But, as a mature company, it also spits out a small but useful fully franked dividend yield of 2%.

That's actually better than Apple's yield of just 0.5%.

2. Bank of America

According to Speights, Buffett has recently gone cool on the banking sector but Bank of America Corp (NYSE: BAC) seems to be an exception.

"After Buffett bought more BofA shares in the first quarter of 2023, Berkshire now owns close to US$29.6 billion of the stock."

For me, Macquarie Group Ltd (ASX: MQG) is the ever-reliable financial giant that can match it with the likes of Bank of America.

In fact, over the past five years stocks of the Aussie investment bank have done far better than its American counterpart.

Over that time the Macquarie share price has risen 40.4%, while Bank of America has actually lost almost 1%.

The Australian company pays out better dividends too, with a current 4.3% yield of which 40% is franked. That compares to 3.1% for Bank of America.

3. American Express

The credit card company is one of Buffett's oldest holdings, according to Speights.

"The legendary investor first bought shares of American Express Company (NYSE: AXP) for Berkshire's portfolio three decades ago," he said.

"Amex is also one of Berkshire's biggest positions, with a valuation of over $26 billion."

For me that durability is matched on the ASX by the likes of Washington H Soul Pattinson and Co Ltd (ASX: SOL).

Soul Pattinson is well-known for constantly hiking its dividends each year. In fact, that streak hasn't been broken since 2001.

Add to that share price appreciation of 646% since November 2001 and full franking of the dividends, and you have yourself an enduring winner.

4. The Coca-Cola Company

Perhaps one of the most famous symbols of American consumerism, I think the beverage giant's equivalent on the ASX is supermarket chain Coles Group Ltd (ASX: COL).

Much like Coca-Cola Co (NYSE: KO), the Australian supermarket chain enjoys loyal patronage through economic downturns.

And Coles plays in a near-duopoly, which is a market position similarly strong to Coke.

As recession fears have played out, the Coles share price has soared more than 9.1% higher year to date.

The supermarket pays out a more-than-handy dividend yield of 3.35%, which is fully franked no less. 

This beats Coca-Cola's yield of 3.1%.

5. Chevron Corporation

According to Speights, the oil and gas company is Berkshire Hathaway's fifth biggest investment, even after it sold some off earlier this year.

Chevron Corporation (NYSE: CVX) is one of Buffett's best income producers, with a dividend yield just shy of 4%.

For mine, Whitehaven Coal Ltd (ASX: WHC) is an Australian match.

Both stocks are obviously correlated to energy and oil prices, which in turn fluctuate according to the economic cycle and the whims of OPEC.

Both produce energy that will be valuable as the world awaits renewable infrastructure to play catch up and to backfill the missing supply from Russia.

The Whitehaven share price has gained a handsome 40% over the past year, while paying out a stunning dividend yield of 10.7% fully franked.

That's the sort of income that US stocks can rarely match.

The post Warren Buffett has $400 billion invested in these 5 dividend stocks. Here are some ASX shares I think are similar appeared first on The Motley Fool Australia.

Berkshire may have dozens and dozens of shares in its bulging portfolio. But Buffett gets the vast majority of his dividend income from just a few of those.

So today, let's look at three of Buffett's largest dividend stocks, and some possible ASX equivalents that we can look to for our own dividends here on the Aussie share market.

3 of Warren Buffett's best dividend stocks

Kraft Heinz Co (NASDAQ: KHC)

Kraft Heinz is one of Berkshire's more controversial holdings. Buffett himself helped engineer the merger that brought Kraft and Heinz together back in 2015. But since then, this company has had its fair share of ups and downs. Between 2017 and 2020, shareholders watched as the company shed 75% of its value.

In saying that, Kraft Heinz has kept the support of Buffett, who hasn't sold a single share. The company appears to be slowly on its way up too, having gained almost 75% since its 2020 lows.

Today, Berkshire would be enjoying the 4.13% dividend yield that Kraft Heinz stock currently offers. The closest ASX equivalent to this food giant is probably Bega Cheese Ltd (ASX: BGA). Not only does Bega have a popular range of Australian food products, including Vegemite, but its portfolio of drink brands (including Dare, Vitasoy, and The Juice Brothers) also gives it some semblance to another Buffett favourite, Coca-Cola Company.

Bank of America Corp (NYSE: BAC)

Buffett has long loved bank stocks, but Bank of America remains Berkshire's only holding as of today. Bank of America is one of the most dominant financial institutions in the United States and the world, only behind JP Morgan Chase.

This one provides an easy comparison. The ASX's equivalent to his investment would probably have to be Commonwealth Bank of Australia (ASX: CBA), which is generally regarded as the ASX's highest-quality bank share. Another option could be the second largest ASX bank, National Australia Bank Ltd (ASX: NAB).

ASX investors might be grateful that both CBA's and NAB's dividend yields come in far ahead of BoA though. Right now, CBA shares are offering a fully franked yield of 4.27%, and NAB, 6.15%. That looks pretty good against Bank of America's 3.13%.

Chevron Corporation (NYSE: CVX)

Buffett clearly loves oil stocks, with both Chevron and Occidental Petroleum forming large chunks of Berkshire's portfolio at present. Chevron is a famous US dividend stock. It is even a rare dividend aristocrat, having increased its annual dividend payments every year for 36 years.

Perhaps Buffett's pick of the ASX oil shares would be Woodside Energy Group Ltd (ASX: WDS). Woodside is the clear market leader when it comes to ASX oil stocks, thanks to its blockbuster merger with the petroleum division of BHP Group Ltd (ASX: BHP) last year. This merger made the company the seventh largest on the S&P/ASX 200 Index (ASX: XJO).

Although Woodside can't boast of such an impressive divided streak as Chevron, it still smashes the yield you can get on Chevron stock today. Chevron currently offers a dividend yield of 3.84%, which pales in comparison to Woodside's fully franked 10.72% trailing yield.

The post 3 high-yield dividend stocks Warren Buffett owns (and 3 similar on the ASX) appeared first on The Motley Fool Australia.

We are very fortunate to be able to get a comprehensive look at Warren Buffett's investments every three months. That's because his investment house, Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B) is a publically traded company that has to disclose its investments every quarter.

So to kick things off, let's take a look at the current top ten investments of Berkshire Hathaway, according to CNBC's Buffett portfolio tracker:

1. Apple Inc (NASDAQ: AAPL), at 47% of Berkshire's portfolio
2. Bank of America Corp (NYSE: BAC) at 8.3%
3. Coca-Cola Co (NYSE: KO) at 7.5%
4. American Express Company (NYSE: AXP) at 6.7%
5. Chevron Corporation (NYSE: CVX) at 6.2%
6. Kraft Heinz Co (NASDAQ: KHC) at 3.9%
7. Occidental Petroleum Corporation (NYSE: OXY) at 3.6%
8. Moody's Corp (NYSE: MCO) at 2.3%
9. Activision Blizzard Inc (NASDAQ: AVTI) at 1.2%
10. HP Inc (NYSE: HPQ) at 1.1%

So a rather interesting and somewhat eclectic collection of investments there.

How to invest, Berkshire Hathaway style

What immediately stands out is Berkshire's massive stake in Apple. At 47% of Berkshire's entire portfolio, it's clear that Buffett has chosen this company as its ride-or-die stock. And it's not hard to see why. Apple indisputably possesses one of the best brands on the planet. The company and its management are of the highest calibre and have shown a consistent ability to generate monstrous profits for decades now.

The other investments are worth analysing on their own merits though. Bank of America, American Express, and Moody's are all financial stocks. Chevron and Occidental are both oil shares. Coca-Cola needs no explanation and nor does food behemoth, Kraft Heinz. Activision Blizzard is a gaming giant behind names like Call of Duty and World of Warcraft. And HP Inc is the office supplies company most of us would be familiar with.

So how would Buffett invest $5,000 in ASX shares today if he could? It's difficult to compare the ASX and US markets, seeing as we simply don't house the same kinds of world-dominating companies that America does.

But let's give it a go anyway.

If I were to deploy $5,000 into ASX shares to try to replicate a Buffett portfolio, here's what I would do.

Building a $5,000 ASX share portfolio like Buffett

I would start with $1,000 in Commonwealth Bank of Australia (ASX: CBA) shares. CBA is Australia's largest bank and shares many of the same characteristics as Bank of America. CBA also provides popular credit products, a la American Express, and provides other financial services for ASX bankers and investors, although not quite in the same manner as Moody's.

But I, and many other analysts, regard CBA as the ASX's best-run bank, and I think that it would be Buffett's pick on the ASX.

Another $1,000 would go into Woodside Energy Group Ltd (ASX: WDS) shares. Woodside is the ASX's largest oil and gas producer, and shares similarities with Occidental and Chevron in this regard. Buffett is clearly bullish on energy right now, and I think Woodside would be a strong contender for energy exposure on the ASX.

Bega Cheese Ltd (ASX: BGA) could be a nice local substitute for Kraft Heinz. Bega's dairy products and nut spreads are popular here in Australia, and provide similar exposure to the kinds of defensive consumer sales products as Kraft Heinz. So there's another $1,000 gone.

With the final $2000, I would invest in the iShares S&P 500 ETF (ASX: IVV). For one, Buffett has often touted the benefits of investing in a low-cost S&P 500 index fund, which the IVV ETF most certainly is.

However, the primary reason I have chosen this ETF is that it gives us ASX investors an easy way to invest in many of those top Buffett holdings ourselves. Buffett's top investment, Apple, is also the largest holding in the iShares S&P 500 ETF with a 7.4% weighting. Berkshire Hathaway itself is number six, while Chevron, Coca-Cola, and Bank of America are also weighted towards the top of the pile.

Foolish takeaway

That's how I think Warren Buffett would build a $5,000 ASX share portfolio here on the ASX today. I don't claim to speak for the great man, of course. But I think this is the closest way that ASX shares can reflect the intentions of what Buffett has done with his own holdings.

The post How to invest $5,000 in ASX shares today like Warren Buffett might appeared first on The Motley Fool Australia.

Luckily for us, his stock selections are public knowledge because the investment company he runs, Berkshire Hathaway Inc (NYSE: BRK.A) (NYSE: BRK.B), is listed. So, we get regular updates on his holdings.

Here are Buffett's top 10 stocks by value, according to Berkshire Hathaway's FY22 full-year results released in February.

Top 10 stocks that Warren Buffett owns

What are the lessons for investors buying ASX 200 stocks? 

Buy large-cap ASX 200 stocks

Buffett's top 10 holdings are full of multi-billion-dollar global companies that own household-name brands.

Obviously, he's extremely positive on Apple given the almost 40% allocation of his total portfolio!

He refers to Apple as Berkshire Hathaway's "third-largest business" after its wholly-owned insurance and railroad companies. He reckons Apple is "probably the best business I know in the world".

You could also say he's in love with Bank of America, Chevron, and American Express, given they and Apple together comprise an astonishing 68% of the investment pie!

Large-cap companies are typically industry giants with large valuations (or market capitalisations). Their sheer size is a big factor enabling them to weather all types of economic conditions.

This means safety and stability for the investor.

As mature companies, their share price growth may be limited unless they are in rapidly growing and evolving industries, such as technology (like Apple), or have a global market for their products (also like Apple).

The trade-off in the limited share price growth is strong, reliable, and regular dividends. This makes them a favourite choice among income investors and those who want lower-risk investments.

Fun fact: Buffett's Coca-Cola investment returns $704 million in annual dividends.

The three biggest large-cap ASX 200 stocks available to investors are BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and CSL Limited (ASX: CSL). 

Buy and hold high-quality businesses for the long term

Buffett is a value investor, meaning he targets high-quality businesses and buys them when they are trading below their intrinsic worth or book value.

He also describes himself as a "business picker" rather than a "stock picker".

That means he uses fundamental analysis to get a real understanding of the companies he is considering buying, and to keep tabs on the ones he already owns. He spends most days in his office reading.

Buffett buys long, which means he's patient. He doesn't get caught up in the day-to-day price movements of his investments based on announcements with short-term share price ramifications.

Buffett's strategy means he has fun in both bear markets and bull markets. How smart is that?

Bear markets provide opportunities to buy below value, and bull markets power up those share prices.

A few examples of long-term holds within Buffett's top 10 stocks are Bank of America, which he first purchased in 2011, American Express (1964), Moody's (2000), and Coca-Cola (1988).

He bought Coca-Cola just months after the Black Monday 1987 market crash. He saw an opportunity to nab a high-quality business while the share price was down, and he went hard too — putting $1 billion into the stock. That's a big number today, let alone back in 1988!

There's also a lesson in moving with the times and adapting your investments in accordance with general business and societal trends, such as the rise of technology.

Buffett first bought Apple in 2016 and Activation Blizzard in 2021. Apple is the biggest US tech stock and Activation Blizzard is in the top 30.

The biggest ASX 200 information technology stocks are WiseTech Global Ltd (ASX: WTC) and Xero Limited (ASX: XRO). But they're babies in size compared to the big US tech stocks.

Keep cash on hand for opportunities

As we covered last month, Buffett moved US$23.3 billion (A$35 billion) from the market into cash between 30 June and 31 December 2022.

Berkshire Hathaway went into 2023 with cash, cash equivalents, and treasury securities (bonds) worth US$128.7 billion.

In his annual newsletter released in February, Buffett explained:

As for the future, Berkshire will always hold a boatload of cash and U.S. Treasury bills along with a wide array of businesses.

We will also avoid behavior that could result in any uncomfortable cash needs at inconvenient times, including financial panics and unprecedented insurance losses.

Spare cash means you can enjoy some satisfying dollar-cost averaging on ASX 200 stocks when the market is down.

Let's talk about diversification

In total, Buffett has 49 stocks in his portfolio, which sounds like a lot. But it's not when you look at the enormity of the whole pie (about US$340 billion).

In short, he's got huge sums invested in each of those 49 stocks. Using the top 10 as an example, if one of those companies goes bust, he'll lose billions. That's probably why they're all large caps. The likelihood of a large cap going under is incredibly small, so perhaps that's why Buffett feels safe to invest big.

Things look a little different when you're an ordinary investor with, say, $50,000 in ASX 200 stocks. You can't really afford to make mistakes and not having a diversified portfolio is a huge one for us.

We should point out that Buffett has good diversification across different industries.

Diversification is important because it gives you safety. The more ASX 200 stocks you hold and the more industries you are exposed to, the lesser your risk.

We don't know what is around the corner. Imagine holding a portfolio full of travel stocks in early 2020.

A quick way of ensuring you have great diversification is not to bother trying to pick ASX 200 stocks at all. Instead, take Buffett's advice and buy a low-cost S&P 500 index fund instead.

That's his key recommendation for ordinary investors looking to set themselves up for retirement.

The S&P/ASX 200 Index (ASX: XJO) closed the session yesterday at 7,362.2 points, down 0.05%.

The post Which stocks does Warren Buffett own (and what can ASX 200 investors learn from this)? appeared first on The Motley Fool Australia.

So what can we learn from Buffett's 2022 moves here on the ASX?

Well, let's check out how Buffett has been managing his cash over the year that (almost) was.

So according to a comprehensive analysis of Buffett's moves from our Fool colleagues over in the US, Buffett made several big moves in Berkshire's portfolio this year.

Buffett's Berkshire bets big on oil

Amongst his bigger bets was a massive increase in Berkshire's exposure to oil. Berkshire already owned significant chunks of oil giants Chevron and Occidental Petroleum. But Buffett more than quadrupled Berkshire's stake in Chevron in 2022, growing the company into Berkshire's fourth-largest position. He also boosted Occidental's position significantly as well.

So Buffett clearly thinks the oil space is one well worth investing in for 2023 and beyond. This might not bode well for motorists in the new year.

Another sector Buffett has apparently been focusing on in 2022 is tech. Buffett has famously been slow on the uptake when it comes to tech shares. He barely owned any tech stocks until 2016. But that was when Berkshire started buying Apple.

A combination of aggressive buying and a ballooning Apple stock price has resulted in Apple now being the largest holding in Berkshire Hathaway's portfolio. And by a mile too.

Berkshire's tech portfolio is expanding

Buffett hasn't bought too much more of Apple in 2022. but he has been loading up on two other tech stocks: HP and Taiwan Semiconductor Manufacturing Co (TSMC) HP is a dominant manufacturer of printers and PCs. he reportedly purchased a chunk of HP when it was sitting at a price-to-earnings (P/E) ratio of just 6, so this looks like a classic value play.

His purchase of TSMC is more interesting. TSMC is by far the most dominant manufacturer of advanced semiconductor chips in the world, with more than half the world's market share. It's Buffett's first foray into the world of semiconductors, but one he has built out aggressively.

His purchase of more than US$4 billion worth of TSMC stock has made this company into Berkshire's tenth-largest position today.

So what can we ASX 200 investors learn from Buffett's 2022 moves?

Well, it's pretty obvious that Buffett is still betting big on oil and tech – specifically semiconductors. Unfortunately, the ASX doesn't have much in the way of semiconductor stocks. But there are plenty of oil and energy shares, including Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) to choose from.

The post What can ASX 200 investors learn from Warren Buffett's big moves in 2022? appeared first on The Motley Fool Australia.

Don't believe for one second that Warren Buffett doesn't think about dividends. In his latest letter to Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) shareholders, he mentioned that the company received $785 million in dividends from just one stock in 2021 (it was Apple).

Buffett's recent buys for Berkshire's portfolio also hints that dividends might have been on his mind. In the third quarter of 2022, he purchased eight stocks. Seven of them pay dividends. A few of them offer dividends that are quite attractive. Buffett just bought these three dividend stocks with yields of over 3%.

1. Paramount Global

Paramount Global (NASDAQ: PARA) stands out as Buffett's only high-yield purchase in the third quarter. The media company's dividend yield currently tops 5.1%. 

Buffett's history with Paramount goes back to when the company was known as Viacom. He led Berkshire to open a position in Viacom in 2012. While the legendary investor later sold all of those shares, he apparently regained an interest in the stock in the first quarter of this year and has kept on buying.

Berkshire now owns 15% of Paramount Global's outstanding class B shares. The stock hasn't been a winner for Buffett so far, though, with a year-to-date decline of close to 40%. 

What does the multibillionaire investor like about Paramount (other than its dividend)? Its valuation probably ranks high on the list. The stock trades below 12.8 times expected earnings.

2. Jefferies Financial Group

Buffett has long been a fan of bank stocks. But he's become less enamored of the financial services sector lately. That's what makes Berkshire's new position in Jefferies Financial Group (NYSE: JEF) somewhat surprising.

With a market cap of under $9 billion, Jefferies is much smaller than the other banks in Berkshire's portfolio. Unlike those other bigger corporations, Jefferies focuses only on investment banking and doesn't have a commercial banking unit. But it offers a dividend that rivals the big boys with a yield of more than 3.2%.

Jefferies' stock has also outgained Berkshire's other bank stocks so far this year. However, Buffett's investment in the company played a key role in that outperformance.

Berkshire owns only a tiny position in Jefferies, though. That could indicate that Buffett and his team began buying in the latter part of the third quarter and are continuing to scoop up shares in the fourth quarter.

3. Chevron

It wasn't surprising whatsoever that Buffett added to his position in Chevron (NYSE: CVX) in the third quarter. The oil and gas giant is Berkshire's third-largest holding, including shares owned by its New England Asset Management subsidiary. 

Chevron's dividend yield of 3.1% is lower than it's been throughout much of the past 10 years. That's not because the company has cut its dividend, though. Actually, Chevron is a Dividend Aristocrat with 35 consecutive years of dividend increases.

Instead, the company's dividend yield is lower because its stock price has risen so much. Chevron stock has soared nearly 60% year to date. That follows a 39% gain in 2021.

Buffett seems to still think Chevron is attractively valued. Its shares trade at 11.2 times expected earnings. There's a good chance that this stock -- and its dividend -- go even higher. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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After taking over Berkshire in the mid-1960s, Buffett transformed the textiles company into a diverse powerhouse, owning many businesses outright and with significant investments in many other public companies.

Buffett's love of his investments is also well known. He even likes to remind shareholders of his commitment to the Coca-Cola Co (NYSE: KO) by typically sporting a can or a bottle at Berkshire's annual general meeting every year.

Berkshire Hathaway's massive portfolio

Berkshire owns stakes in more than 50 different publically-traded shares. But it might surprise investors to learn that almost 74% of Berkshire Hathaway's public investing portfolio is concentrated in just five companies. That's according to the company's latest 10Q filing, which is accurate as of 30 September.

Some famous names appear in Berkshire's list. There's Amazon.com Inc (NASDAQ: AMZN), Johnson & Johnson (NYSE: JNJ) and Visa Inc (NYSE: V). Buffett also owns chunks of Activision Blizzard Inc (NASDAQ: ATVI), Chinese electric vehicle manufacturer BYD Co Ltd and the relatively new-to-the-markets Snowflake Inc (NYSE: SNOW).

But none of these companies even come close to Buffett's top five holdings.

They are (from largest):

1. Apple Inc (NASDAQ: AAPL)
2. Bank of America Corp (NYSE: BAC)
3. Chevron Corporation (NYSE: CVX)
4. Coca-Cola Co
5. American Express Inc (NYSE: AXP)

So what can we learn from this?

What can we learn from Warren Buffett?

Well, a few things to point out. Some of these holdings, namely Coca-Cola and AmEx, are old Buffett favourites. Buffett first bought Coca-Cola shares back in the 1980s. His investment in American Express goes back even further to the 1960s.

But others are far newer. Apple is by far Berkshire's largest investment. The company has more than US$128 billion worth of Apple shares, which carves out a whopping 39.7% of Buffett's entire public portfolio. Yet Buffett only began buying Apple shares back in 2016. His Chevron stake is even newer, with Berkshire picking up its first shares in the midst of COVID-ravaged 2020.

So Buffett is clearly an investor that holds onto his favourite shares through thick and thin. American Express is a company that has had many, many ups and downs since Buffett first bought in back in the '60s. Yet Buffett has always stayed the course. Ditto with Coca-Cola.

But he is also an investor who knows how to jump on a trend. Buffett clearly saw the post-COVID collapse in global oil prices as an incredible opportunity.

It only took him two years to build Chevron into Berkshire's third-largest position – one worth US$31.2 billion today. And Apple has gone from absent to Berkshire's largest holding in just a few years as well.

So Warren Buffett is clearly an investor who likes to hold his favourite shares forever. But he is also one that isn't afraid to jump on a trend or a new idea and quickly build it into a sizeable position.

Perhaps above all, Buffett's Berkshire portfolio shows that he is just fine with having 40% of his portfolio in his favourite company: Apple. There are more than a few lessons we mere mortals can take away today.

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There's a reason so many investors want to own Warren Buffett stocks.

The so-called Oracle of Omaha has trounced the market in his long history an investor. Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has nearly doubled the annual return of the S&P 500 for nearly 60 years, and thanks to the magic of compounding, that means Berkshire has returned more than 100 times what the S&P 500 has in that time frame.

Luckily, for investors, Warren Buffett's playbook is wide open, and he's made it clear what kinds of stocks he favors. Here are five simple questions to ask to determine if a stock would get the Buffett stamp of approval.

1. Does it have an economic moat?

Buffett's favorite concept in all of investing may be the "economic moat," or what most investors call a sustainable competitive advantage. Buffett once said, "The most important thing [is] trying to find a business with a wide and long-lasting moat around it, protecting a terrific economic castle with an honest lord in charge of the castle."

As he alludes to in that statement, this key attribute protects the company from competitors. Buffett likes stocks with well-known brands such as Coca-Cola or Apple; companies with limited competition and barriers to entry, like the railroad BNSF that he acquired a decade ago; or companies with strong market share and recurring revenue, like GEICO.

If you want to know if it's a Buffett stock, ask yourself if the company can withstand competition over a long period of time.

2. Does it produce cash?

Buffett doesn't generally waste his time with unprofitable growth stocks. He looks for companies that generate cash. 

Buffett likes to own businesses like insurers that produce cash in premiums that come in advance of claims. He refers to this as a "float" that allows him to reinvest that cash in stocks. He also likes sectors such as energy (for example, Chevron stock), which generate high levels of cash flow when oil prices rise. Buffett's a fan of banks and financial companies like Bank of America and American Express that have reliable profit generation from commercial lending, and he's known to invest in utilities and healthcare, which tend to generate steady cash flows.

What you'll find among almost every Buffett stock is that they produce reliable cash flow, and many of them pay a dividend. 

3. Does it have a long track record? 

Warren Buffett doesn't generally chase the latest trends whether they be dot-com stocks in the 1990s or cloud software stocks more recently.

Instead, he prefers to own companies with long track records and operating histories. Often, he's studied these companies for years, or is well-acquainted with their brands. With Coca-Cola, for example, he had seen its success for 50 years before becoming an investor. When Buffett decided to invest in tech, he bought stock in IBM, because he'd followed it for decades and understood the business. While that investment didn't pan out, it nonetheless reflects Buffett's approach of studying a company for a long time.

Similarly, in financials, he prefers legacy banks over fintech, because banks have proven their business models over long periods of time. Not only are they less risky, but they also generate reliable cash flow.

4. Does it outperform in bear markets?

Historically, Berkshire has best demonstrated its fortitude during bear markets. Buffett hoards cash to buy stocks when they're cheap, and he's known for taking advantage of sell-offs like during the financial crisis when he took a high-yielding stake in preferred stock in Bank of America. Berkshire has also outperformed the stock market by a wider margin in bear markets, including this year.

Because many of Buffett's favorite stocks have stood the test of time, they tend to do well in bear markets, and many of his favorite industries -- including consumer staples, insurance, utilities, and healthcare -- are known for being recession-resistant.

Buffett doesn't exclusively buy recession-proof stocks. He owns cyclical stocks in industries like energy, banking, and industrials, but in general, he prefers to buy stocks that can outperform in bear markets or at least have demonstrated an ability to recover from them.

5. Is it a good value?

Finally, Buffett is a classic value investor. He wants to buy stocks that are trading below their intrinsic value, which is typically estimated with a discounted cash flow model.

The quality of the company is more important to the Berkshire chief than the price. He has famously said, "It is far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

However, if he finds a stock he likes, he'll only buy it if he believes it's a good value at the current price. In the bull market during the 2010s, Buffett often lamented that stocks had become too expensive. With prices now down, it wouldn't be surprising to see Berkshire deploying its cash hoard, which is currently worth more than $100 billion.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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That might put many investors off buying shares. These are uncertain times, after all.

But one investor has instead been buying up big. That would be the legendary Warren Buffett, of Berkshire Hathaway Inc (NYSE: BRK) fame.

As our Fool colleagues over in the US covered recently, Buffett has been spending big over the year so far. And one of his favourite shares to buy has been a dividend stock.

Buffett reportedly acquired 2.4 million shares of oil giant Chevron over the second quarter of 2022. Those 2.4 million shares would be worth approximately US$405.5 million on the latest pricing.

That brought Berkshire's total holdings to 163.5 million shares, representing an 8.4% ownership of the entire company. That's a stake worth more than US$27 billion.

Our Fool colleagues report that Buffett's company will now enjoy almost US$929 million in dividend income per annum from this investment.

Following Buffett's dividend example

Buffett's enthusiasm for this dividend share highlights the value of a solid dividend payer during uncertain times. While share prices may fluctuate, nothing is more concrete than receiving hard cash.

As we discussed this morning, market volatility, even crashes, can be the discerning investor's best friend. This is doubly true when it comes to dividend shares.

This is because the lower a dividend share's price gets, the higher starting yield an investor can potentially enjoy. Take the Commonwealth Bank of Australia (ASX: CBA) share price.

Over 2022 thus far, CBA shares have endured significant volatility, having fluctuated between $108.35 and $86.98 a share this year. But CBA has still been raising its dividend consistently since 2020. Its two most recent dividend payments add up to $3.85 in dividends per share.

For an investor buying in at $108.35, this would give them a dividend yield of 3.55% on their capital. But if that same investor was braver and bought up at $86.98, they would be rewarded with a far better yield of 4.43% on their capital.

So it's for this reason that all investors should strive to buy quality dividend shares at the lowest price possible. It's one of the reasons Warren Buffett is one of the richest investors in the world, after all.

The post Warren Buffett has been buying up big on dividend stocks. Should you? appeared first on The Motley Fool Australia.

Warren Buffett has been making a bold bet on oil prices over the past year. His company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), has been buying shares of oil giants Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY) hand over fist to capitalize on the rise in crude prices.     

While oil prices have cooled off on fears that we're about to enter a global recession, that slump has reversed recently thanks to OPEC. The group of oil-producing nations has surprisingly agreed to cut its production by a whopping 2 million barrels per day, giving crude prices a lift. That should provide a boost to Buffett's oil stocks in the future. 

Taking matters into their own hands

Oil prices have been on a wild ride this year. The price for Brent crude, the global benchmark variety, started 2022 below $80 a barrel. It soon spiked to more than $120 a barrel following Russia's invasion of Ukraine. It remained in the triple digits well into the summer before cooling off on concerns that the global economy was starting to slow. Brent recently bottomed out in the low $80s.

However, it surged above $90 a barrel on rumors that OPEC was about to cut its production. While initial reports suggested the group, along with other nations collectively known as OPEC+, would slash their output by 1 million barrels per day, they have since agreed to an even deeper reduction of 2 million barrels per day. It's an astonishing development considering that analysts believe the market might not have enough oil supply to meet demand. 

The cut should at least put a firm floor under oil prices. Meanwhile, it sets crude up to rally sharply if there's an unexpected supply issue or demand doesn't cool, as many anticipate in a global recession.

Giving Buffett a helping hand

Stable to rising crude prices should be a boon to Buffett's oil holdings. Berkshire Hathaway has gobbled up more than 163.5 million shares of Chevron, equal to 8.4% of the oil giant's outstanding shares. That position is worth over $25 billion, making it Buffett's third-largest stock holding at 8% of his portfolio.   

Meanwhile, Buffett took advantage of a decline in Occidental Petroleum's stock price last month as oil prices cooled off to buy another 6 million shares. He now holds 20.9% of the company's outstanding shares. That position is currently worth nearly $13 billion. Buffett has regulatory approval to take that position up to 50% in the future.

Chevron has capitalized on rising crude prices this year. It produced $21.8 billion of cash flow from operations during the first half, nearly double the $11.2 billion it generated during that same period last year. That gave it the funds to boost its investments in traditional and new energy by 50%, increase its dividend for the 35th straight year, raise the top end of its share repurchase range to $15 billion, and pay down additional debt.

Chevron's cash flow ebbs and flows with oil prices. Because of that, it will likely see a boost from OPEC's move to bolster crude prices. That would give it more money to allocate toward creating value for shareholders.

Occidental Petroleum is in the same boat. It has cashed in on higher oil prices this year. It generated a record $4.2 billion of free cash in the second quarter alone. That gave it the funds to repay more than $8 billion of debt by May, quickly exceeding its target. This achievement gave Occidental the confidence to significantly increase its dividend and launch a $3 billion share repurchase program while setting an additional $5 billion debt reduction target. 

The oil company is more likely to be able to repay debt and return capital to shareholders at a faster rate now that OPEC is making this surprising move to support oil prices. This catalyst could fuel a continued surge in Occidental's share price this year.

Boosting Buffett's bold oil bets

OPEC has had enough of crude's recent slide. That's evident in its surprising decision to slash its output by 2 million barrels per day. This move could drive oil prices higher in the coming months.

That likely rebound should be a boon to Buffett's oil investments because it will enable Chevron and Occidental Petroleum to generate more cash. They can use those funds to reduce debt and return more money to investors, which should help boost their stock prices. That unexpected intervention makes Buffett's oil stock bets look like they'll continue to pay off.  

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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