Buffett's Berkshire Hathaway's Stock Movements
Warren Buffett's company, Berkshire Hathaway, made significant changes to its stock portfolio in the fourth quarter, according to a recent filing with the Securities and Exchange Commission (SEC).
Reductions in Stakes
Berkshire Hathaway reduced its stakes in Paramount Global and HP by 32% and 78% respectively. Additionally, the conglomerate sold off all its holdings in DR Horton, Markel, StoneCo, and Globe Life.
Boosted Stock Bets
Despite the reductions, Berkshire Hathaway increased its stake in Chevron by 14% last quarter. However, the value of Chevron's stock declined by over 10% during the same period, resulting in Berkshire's position remaining almost flat at $18.8 billion by the end of December. The company also quadrupled its stake in SiriusXM to over 40 million shares, worth $220 million at the end of the year. Furthermore, Berkshire Hathaway added to its Occidental Petroleum position, as previously disclosed.
Confidential Holdings
Buffett and his team have requested confidential treatment from the SEC for at least one position still being built, similar to their approach in previous quarters. By keeping these holdings undisclosed, they aim to avoid driving up stock prices and incurring higher costs to complete their desired stakes.
Previous Stock Sales
Berkshire Hathaway's recent stock sales are not unexpected, as the company disposed of approximately $24 billion worth of shares on a net basis in the first nine months of 2021. In the third quarter alone, they exited long-held positions in companies such as General Motors and Procter & Gamble, which had been part of their portfolio for over a decade.
Challenges for Buffett as a Value Investor
Warren Buffett, known for his value investing strategy, has faced challenges in finding attractive deals in recent years. Record-high stock prices, intense competition from private equity firms for acquisitions, and less appealing buyback opportunities due to Berkshire Hathaway's soaring stock value have limited Buffett's investment options. As a result, Berkshire Hathaway's cash pile reached an unprecedented $157 billion in the third quarter.
In conclusion, Berkshire Hathaway's latest stock movements reflect Warren Buffett's strategic decisions to reduce stakes in certain companies, increase holdings in others, and keep some positions undisclosed. These actions align with his long-term value investing approach and the challenges posed by the current market conditions.
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By: tmohamed@insider.com (Theron Mohamed)
Title: Warren Buffett’s Berkshire Hathaway Slashes and Exits Stock Bets in Q4
Sourced From: markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-paramount-hp-stock-portfolio-secret-q4-2024-2
Published Date: Thu, 15 Feb 2024 00:44:42 +0000
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