Last week, Berkshire Hathaway – the investment vehicle of the famously discerning Warren Buffett – reported its quarterly earnings. And, well, it wasn’t exactly a barnburner. Operating earnings dipped nearly 30%, insurance profits took a tumble, and investment income followed suit. Shares wobbled a bit, as shares are wont to do when faced with numbers that aren’t shooting for the moon. But the folks at Berkshire, bless their calmly rational hearts, seemed remarkably unperturbed. They pointed out, with a touch of justifiable weariness, that quarterly earnings can be… let’s just say ‘massaged’ by accounting practices. A point, if you’ve ever glanced at a financial report, that’s not entirely without merit.
More interesting than the numbers themselves, however, were a couple of rather conspicuous purchases. Berkshire doesn’t often shout its intentions from the rooftops, preferring a quiet, methodical approach. But when it does make a move, it’s usually worth a look. And last quarter, it was loading up on two stocks in particular: Chubb and Chevron. It’s like finding a pair of sensible walking shoes amongst a pile of rocket-powered roller skates. Unexpected, perhaps, but undeniably practical.
A Defensive Posture?
Berkshire’s top ten holdings account for roughly 80% of its publicly traded portfolio – a rather concentrated bet, if you think about it. Within that top ten, two stocks saw their positions trimmed, while Chubb and Chevron experienced significant additions. Berkshire purchased nearly three million additional shares of Chubb, and a rather substantial eight million shares of Chevron. Chevron now represents around 7% of the portfolio, while Chubb weighs in at about 4%. It’s a bit like rearranging the furniture on the deck of a very large, very stable ship.
Interestingly, Berkshire was simultaneously reducing its holdings in a tech stock and a bank stock. Now, tech stocks, while often exciting, can be a bit like chasing butterflies – prone to sudden, unpredictable flights. And banks, well, banks tend to feel the pinch whenever the economic weather turns sour. Chubb, an insurance company, and Chevron, an energy giant, offer a different flavor entirely. They’re not exactly thrilling, perhaps, but they tend to be… resilient. It’s not a coincidence that insurance companies are frequently mentioned in discussions about stability. They’re in the business of mitigating risk, after all.
And Chevron? Energy stocks, as it turns out, can actually benefit from geopolitical instability. It’s a rather unfortunate truth, but when the world gets a bit wobbly, the price of oil tends to climb. It’s a bit like a peculiar inverse relationship – the more chaotic things become, the more valuable a reliable source of energy becomes.
Buffett and Berkshire have always maintained that market timing is a fool’s errand, and I’m inclined to agree. But it’s hard not to notice that Berkshire’s portfolio seems to be subtly shifting towards a more defensive posture. And with around $370 billion in cash reserves, they certainly have the firepower to continue doing so.
Is Berkshire intentionally positioning itself for a potential downturn? It’s impossible to say for certain. But the recent trades, combined with that substantial cash pile, certainly suggest a degree of caution. And so far, the bets seem to be paying off. Chevron, unsurprisingly, has benefited from the recent geopolitical tensions, while Chubb has outperformed the S&P 500 by a healthy margin this year. It’s a reminder that sometimes, the most sensible investments aren’t the flashiest ones. They’re simply the ones that hold up when the going gets tough.
Both Chevron and Chubb possess merit as investments regardless of the broader market climate. But Buffett and Berkshire appear to be increasingly emphasizing sectors that can thrive even in atypical environments. And, so far, both companies have proven to be profitable bets to start the year. It’s a bit like packing a sturdy raincoat and a comfortable pair of walking shoes before embarking on a journey – you might not need them, but you’ll be awfully glad you brought them if the weather turns sour.
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2026-03-12 15:52