Prediction: These 2 Warren Buffett Stocks Will Jump If Donald Trump and the GOP Sweep in November

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Only two more days remain until millions of Americans head to the polls. Many others across the country have already voted. The outcome of the elections will almost certainly cause some stocks to rise and some to fall.

Warren Buffett probably won’t fret about how the stocks in Berkshire Hathaway‘s portfolio will perform regardless of who wins. However, at least a few of his stocks could be big winners if former President Donald Trump secures a second term and Republicans gain control of Congress. I predict two Buffett stocks in particular will jump if Trump and the GOP sweep this week.

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Two of the six largest positions in Berkshire’s portfolio are oil stocks that are poised for big gains with Republicans in power. Chevron (NYSE: CVX) ranks as the conglomerate’s fifth-largest holding, with a stake currently worth around $17.7 billion. Occidental Petroleum (NYSE: OXY) trails Chevron in the No. 6 spot, with Berkshire owning roughly $13.2 billion worth of the oil and gas producer going by fair value.

Buffett initiated a position in Chevron in the fourth quarter of 2020. The stock had plunged earlier in the year with the pandemic shutdowns across the world dramatically reducing the demand for oil.

Although Berkshire has a significant stake in Chevron, it owns fewer shares than it did a year ago. Buffett sold around 3.11 million shares in the first quarter of 2024 and another 4.37 million shares in the second quarter.

On the other hand, the legendary investor has continued to aggressively buy shares of Occidental Petroleum. Buffett opened a new position in Oxy in the first quarter of 2022 and has added to it nearly every quarter since then. Berkshire now owns 27.3% of Occidental and obtained regulatory approval in 2022 to acquire up to 50% of the company.

Why are Chevron and Occidental Petroleum stocks likely to benefit if Trump and the GOP win the upcoming elections? Two Republican policies could especially affect them.

First, Trump has pledged to increase domestic drilling for oil and gas. Exactly how much his policies will actually help Chevron and Occidental remains to be seen. The U.S. is already producing a record number of barrels of oil per day.

However, oil executives would no doubt love the deregulation that a GOP sweep would likely usher in. Investors will probably do so, too, with shares of Chevron and Occidental rising as a result of the increased optimism about the oil and gas industry.

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