Warren Buffett could have bought any of the 378 companies in the S&P 500 for $74 billion. Instead, he invested it all in a favorite stock.

For sixty years.Berkshire HathawayNew York Stock Exchange Stock Codes::BRK .A)(New York Stock Exchange: BRK).B) Chief Executive Officer Warren Buffett put on a great show for Wall Street and the average investor. Since the "Oracle of Omaha" became Mat Executive in the mid-1960s.Standard & Poor's 500 Index (S&P 500)The aggregate rate of return (including dividends paid) is nearly 34,000%, while the aggregate rate of return for Warren Buffett's Class A shares (BRK.A) is nearly 5,000,000%, which is mind-boggling!

While Gwen Buffett was as prone to mistakes as any other investor, he and his top investment assistants (which, until his recent death, included Charlie "the architect of Berkshire Hathaway" Munger) showed a knack for spotting bargains that were hiding in plain sight. For decades, Buffett and his team have consistently outperformed the S&P 500, which is why professional and casual investors alike sit on the edge of their seats waiting to see which stocks Buffett and his team buy and sell.

Even though Warren Buffett has been a net seller of stocks lately, there are a few stocks that have caught his eye.

Despite Buffett's repeated statements that he would "never bet against the U.S.," he and his team have been net sellers of stocks for five consecutive quarters. From September 1, 2022 to December 31, 2023, the total amount of shares sold exceeded the amount of shares bought by nearly $39 billion.

As much as Burgoon Hill is a net seller of stocks, a couple of stocks have caught the attention of Oracle Omaha lately. In particular, two energy stocks have caught the eye of one of Berkshire's brightest investment minds:Snowdragon (Chevron) (NYSE:CVX)(math.) andOccidental Petroleumfirms(Occidental) Petroleum ) (NYSE: OXY)The

Warren Buffett and his team have purchased more than 248 million shares of Occidental Petroleum since the start of the 2022 campaign. Meanwhile, Bria's Form 13F filed with the U.S. Securities and Exchange Commission shows that Berkshire's top investors increased their holdings of Chevron by about 15.85 million shares in the quarter ending in December. The two oil and gas names accounted for $37.2 billion of Berkshire's $368 billion investment portfolio.

The reason Warren Buffett and his team are so confident and invested in these two energy stocks is simple: they believe that the spot price of crude oil will remain above historical levels, and possibly even higher. Global crude oil supplies are now somewhat constrained as most large energy companies have been forced to cut back on capital spending during the COVID-19 pandemic. Typically, when the supply of a commodity in demand is tight, the price of that commodity goes up.

Chevron is an integrated carriers operator with a market capitalization of approximately US$3 billion and a slightly larger position. In addition to drilling for oil and gas, it also operates koon road, chemical plants and oil refineries, which provide predictable operating cash flow in any economic environment or to hedge against declines in the spot price of crude oil.

Occidental Petroleum is also an integrated nameplate oil and gas company, but most of its revenues are dependent on the higher-margin drilling business. Occidental Petroleum will benefit more from higher oil prices.

Omaha's Oracle invested $74 billion in a favorite stock in less than six years.

Warren Buffett has amassed a $17 billion stake in Occidental in a little over two years, which you might recognize as Occidental, Chevron, or a tech stock that accounts for nearly 42% of investment assets.Apple), are all favorite stocks for Oracle Omaha to buy - but you're wrong.

While you won't find its name in Berkshire Hathaway's 13F filing, Warren Buffett has spent nearly $74 billion on shares of a favorite stock since mid-2018.

To put this in perspective, the benchmark S&P 500 index consists of 500 companies. As of the close of business on April 10, 378 of those companies had a market capitalization of less than $74 billion. Theoretically, Buffett and his top investment assistants could have purchased any one of these 378 proven companies in less than six years with the cash allocated to a single special stock.

What makes Warren Buffett's persistence in buying this beloved stock so eye-opening is that he is buying theOwn company's stock!

Prior to July 2018, Berkshire Hathaway's stock repurchase program required that the company's stock trade at or below 120% of its book value in order to make a repurchase. In previous years, Berkshire's stock price had never fallen at or below this threshold, meaning Buffett could not pull the trigger on a penny buyback.

However, things changed on July 17, 2018 in a major way. The Board of Directors of Berkshire Hathaway adjusted the covenants of the company's stock exchange program to allow Buffett and Munger to work their magic. The Board established two criteria:

• only if Berkshire Hathaway has at least $30 billion in cash, cash equivalents, and U.S. Treasuries on its balance sheet; and

• Warren Buffett and Charlie Munger believe that their companies' stocks are inherently cheap, and that a buyback can begin without an end date or spending cap.

Warren Buffett has purchased additional shares of Berkshire Hathaway for 22 consecutive quarters since the Board of Directors revised these standards.

Since Berkshire Hathaway does not pay a dividend, a stock buyback is the simplest way for the company to reward its long-term investors. Repurchasing shares steadily reduces the number of outstanding shares, thereby gradually increasing the ownership of investors in the company.

In addition, companies with stable or growing net income tend to get a healthy boost in their earnings per share (EPS) as a result of repurchases. With nearly $168 billion in cash, cash equivalents, and U.S. Treasuries on Berkshire's balance sheet as of December 31, you can rest assured that Oracle of Omaha will continue to put the company's money into his favorite stock, Berkshire Hathaway.

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Sean Williams does not own any of the above stocks.The Motley Fool owns shares of recommended Apple, Berkshire Hathaway and Chevron.The Motley Fool recommends Occidental Petroleum.The Motley Fool has a disclosure policy.

Warren Buffett could have bought any of the 378 companies in the S&P 500 for $74 billion. Instead, he invested it all in a favorite stock.