Warren Buffett made an outsized bet on oil stocks in recent years. He's built meaningful positions in Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY), which are now two of his largest holdings. 

Buffett's decision to load up on oil stocks is starting to look brilliant. Crude prices have rallied sharply in recent weeks and could have further to run after OPEC agreed to extend its production cut for a few more months. Higher prices would enable Chevron and Occidental to produce more cash, boosting their stock prices and ability to return money to shareholders.

Warren Buffett's company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) has amassed more than 123 million shares of Chevron and over 224 million shares of Occidental. They're currently worth $20.4 billion and $14.8 billion, respectively. That makes them Berkshire's fifth and sixth largest holdings, at 5.6% (Chevron) and 4.1% (Occidental) of its investment portfolio.

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Source Fool.com