4 Warren Buffett Stocks That Are Absolutely Trouncing the Market

Warren Buffett is once again demonstrating why he’s called the Oracle of Omaha. While the S&P 500 is floundering, shares of Berkshire Hathaway (BRK.A -2.01% ) (BRK.B -2.34% ) have jumped close to 17% year to date.

A big part of Berkshire’s impressive gain is due to even better performances from individual stocks in its portfolio. Here are four Buffett stocks that are absolutely trouncing the market.

A worker wearing a hard hat with an oil refinery in the background.

Image source: Getty Images.

1.Chevron

Buffett led Berkshire to first invest in Chevron (CLC -2.21% ) back in 2020. Shares of the oil and gas giant plunged (as did many other stocks) during that period with the onset of the pandemic.

But the dynamics for the oil and gas industry are much different now than they were back then. Chevron ranks as Buffett’s biggest winner so far in 2022 (excluding stocks that Berkshire added after the start of the year). Its shares have skyrocketed nearly 50% year to date.

Buffett appears to remain optimistic about Chevron — at least as of Berkshire’s latest regulatory filing detailing its holdings. Chevron was one of only four stocks in Berkshire’s portfolio for which he added shares in the fourth quarter of 2021.

2. Suncor Energy

Chevron isn’t the only hot energy stock in Buffett’s lineup. Shares of Suncor Energy ( HIS -3.00% ) have soared close to 40% so far this year.

Suncor is best known for pioneering the development of the Athabasca oil sands in Canada. Bans on importing Russian oil and gas and a rebounding 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.

3.Kroger

Kroger (KR -2.03% ) certainly isn’t known as a high-growth stock. However, shares of the grocery chain have jumped nearly 30% year to date, making Kroger one of Buffett’s top performers.

It’s not hard to understand why. Investors have shifted to safer stocks as volatility has risen. Kroger falls into that category since consumers need food regardless of what’s going on in the stock market or around the world.

But Buffett trimmed Berkshire’s stake in Kroger in the fourth quarter of 2021. It wouldn’t be surprising to see him do so again considering that the stock might be getting a little too expensive with shares now trading at a forward earnings multiple well above Kroger’s peers.

4. Bristol Myers Squibb

Bristol Myers Squibb ( BMY -2.33% ) stands out as another big winner for Buffett that he doesn’t seem to like as much as he did in the past. The stock has vaulted more than 20% higher so far in 2022. But Berkshire slashed 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 extent. However, the company has also enjoyed some good news, picking up US and European approvals for new indications for cancer drug Opdivo.

Arguably the best news for the company in 2022, though, was its overwhelmingly positive clinical results for heart-failure drug mavacamten. Analysts think the drug could generate sales of $1.7 billion by 2026 if approved.

Editor’s note: A previous version of this article incorrectly stated that Berkshire first bought Chevron during the first quarter of 2020. The Fool regrets the error.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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