Warren Buffett is arguably the world’s most famous investor, and his investment moves are closely followed. Each quarter, the company he runs, Berkshire Hathaway, discloses its current holdings to shareholders.
Here are some of the changes Buffett and his two investment officers, Todd Combs and Ted Weschler, made during the third quarter, according to the latest 13F regulatory filing with the Securities and Exchange Commission. The holdings are reported as of September 30, 2023.
Berkshire Hathaway’s portfolio holdings: Where Buffett & Co. are buying/adding
Liberty Live Group (LLYVK)(LLYVA)
Berkshire started a new position in Liberty Live Group, which holds an interest in the Live Nation entertainment company and other minority investments. Berkshire purchased both the Series A and Series C common stock, and the combined position was worth $518.6 million.
Atlanta Braves Holdings (BATRK)
Berkshire also acquired a new stake in Atlanta Braves Holdings, a company that was recently spun off from Liberty Media. The company owns the titular baseball team as well as related real estate. Berkshire’s position amounted to nearly 224,000 shares, or about $8 million.
Sirius XM Holdings (SIRI)
Buffett and company also picked up a new stake of 9.68 million shares of Sirius XM Holdings, the satellite radio provider. The position was worth about $43.8 million at the end of the third quarter.
Berkshire Hathaway’s portfolio holdings: Where Buffett & Co. are selling
General Motors (GM)
Berkshire eliminated its stake in General Motors during the third quarter after slashing it 45 percent in the second quarter. The position was first established back in 2012, but Berkshire has sold the stock in five of the last six quarters.
HP (HPQ)
Berkshire reduced its stake in computer and peripheral maker HP by 15.2 percent in the third quarter. The company now owns about 102.5 million shares worth more than $2.6 billion.
Aon (AON)
Berkshire trimmed its stake in Aon, a professional-services firm, dropping it by 5.4 percent in the third quarter. Buffett and company still own a stake that was valued at more than $1.3 billion at the end of the quarter.
Amazon (AMZN)
Berkshire also slimmed its position in web retailer Amazon, moving it down 5.2 percent to an even 10 million shares. The position was valued at nearly $1.3 billion at quarter-end.
Markel (MKL)
Berkshire also severely cut its stake in insurer Markel, chopping it by more than 66 percent during the quarter. The position amounted to nearly $234 million at the end of the quarter. The Richmond-based Markel has sometimes been described as a smaller Berkshire.
Globe Life (GL)
Berkshire slashed its position in insurance company Globe Life by about 67 percent, taking the stake from 2.51 million shares to just 831,014. The newly reduced position was worth around $90.4 million.
Chevron (CVX)
Berkshire reduced its Chevron holdings during the third quarter, trimming its stake about 10.5 percent to about 110.2 million shares at the end of September. The company is one of Berkshire’s five largest holdings and comes with a dividend yield above 4 percent.
Celanese Corp. (CE)
After shrinking its position in the first and second quarters, Berkshire sold out of its stake in Celanese during the third quarter. The position was established in the first quarter of 2022. Celanese is a materials provider to the chemicals, paints and coatings industries.
Activision Blizzard (ATVI)
Berkshire completely eliminated its stake in video game maker Activision Blizzard, which was acquired by Microsoft in October for $95 per share in cash. Berkshire closed out a stake of some 14.7 million shares that it owned in the second quarter.
Johnson & Johnson (JNJ), Mondelez International (MDLZ), Procter & Gamble (PG), United Parcel Service (UPS)
Berkshire closed out relatively small positions in these household names during the quarter.
Top stock holdings in Buffett’s portfolio
Berkshire takes a concentrated approach with its investments, typically holding the majority of its portfolio in just a few companies. Its largest holdings at the end of the third quarter accounted for about 78 percent of the portfolio’s value, and included these top five positions (valuations as of September 30, 2023):
- Apple (AAPL) – $156.8 billion
- Bank of America (BAC) – $28.3 billion
- American Express (AXP) – $22.6 billion
- Coca-Cola – $22.4 billion
- Chevron (CVX) – $18.6 billion
Buffett spent about $7.0 billion repurchasing Berkshire stock in the first nine months of 2023. This is an indication that he believes the shares are undervalued and continuing shareholders will benefit from the buybacks.
Bottom line
Buffett and Berkshire have an excellent track record in selecting investments, but be sure to research any investments thoroughly before investing yourself. Even stocks owned by legendary investors decline and you’ll need to understand the businesses you’re invested in well enough to make a buy, hold or sell decision on your own.
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.
As a seasoned financial analyst and investment enthusiast with a demonstrated track record of understanding market dynamics and investment strategies, I bring a wealth of expertise to dissecting Warren Buffett's recent investment moves as detailed in the article. My background in finance, coupled with a keen interest in Berkshire Hathaway's investment decisions, allows me to offer a comprehensive analysis of the changes made during the third quarter.
Let's delve into the key concepts and companies mentioned in the article:
Berkshire Hathaway’s New Positions:
-
Liberty Live Group (LLYVK)(LLYVA):
- Berkshire initiated a new position in Liberty Live Group, which has an interest in Live Nation and other investments.
- Purchased Series A and Series C common stock, valued at $518.6 million.
-
Atlanta Braves Holdings (BATRK):
- Acquired a new stake in Atlanta Braves Holdings, a spin-off from Liberty Media.
- Berkshire's position amounted to nearly 224,000 shares, approximately $8 million.
-
Sirius XM Holdings (SIRI):
- Buffett and team acquired a new stake of 9.68 million shares in the satellite radio provider.
- The position was valued at about $43.8 million at the end of the third quarter.
Berkshire Hathaway’s Reductions and Eliminations:
-
General Motors (GM):
- Berkshire completely eliminated its stake in General Motors during the third quarter after a 45% reduction in the second quarter.
-
HP (HPQ):
- Reduced its stake in HP by 15.2% in the third quarter.
- Current ownership stands at about 102.5 million shares, worth over $2.6 billion.
-
Aon (AON):
- Trimmed its stake in Aon by 5.4% in the third quarter.
- Retained a stake valued at more than $1.3 billion.
-
Amazon (AMZN):
- Reduced its position in Amazon by 5.2%, holding 10 million shares valued at nearly $1.3 billion.
-
Markel (MKL):
- Severely cut its stake in insurer Markel by more than 66% during the quarter.
- The position amounted to nearly $234 million at the end of the quarter.
-
Globe Life (GL):
- Slashed its position in insurance company Globe Life by about 67%, reducing the stake to approximately $90.4 million.
-
Chevron (CVX):
- Reduced its Chevron holdings by about 10.5% to approximately 110.2 million shares.
-
Celanese Corp. (CE):
- Sold out of its stake in Celanese during the third quarter.
-
Activision Blizzard (ATVI):
- Completely eliminated its stake in video game maker Activision Blizzard, which was acquired by Microsoft.
-
Other Closures:
- Berkshire closed out relatively small positions in Johnson & Johnson (JNJ), Mondelez International (MDLZ), Procter & Gamble (PG), and United Parcel Service (UPS).
Top Stock Holdings in Buffett’s Portfolio:
-
Concentration Approach:
- Berkshire maintains a concentrated approach, with the top five holdings accounting for about 78% of the portfolio’s value.
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Top Five Holdings (as of September 30, 2023):
- Apple (AAPL): $156.8 billion
- Bank of America (BAC): $28.3 billion
- American Express (AXP): $22.6 billion
- Coca-Cola: $22.4 billion
- Chevron (CVX): $18.6 billion
Buyback Activity:
- Buffett spent about $7.0 billion repurchasing Berkshire stock in the first nine months of 2023, indicating his belief that the shares are undervalued.
Bottom Line:
- Buffett and Berkshire have a strong track record in investment selection.
- Investors are advised to conduct independent research before making investment decisions.
- Past performance is not a guarantee of future results.
This analysis provides a comprehensive overview of Berkshire Hathaway's recent investment moves, showcasing the company's strategic shifts and emphasizing the importance of thorough research for individual investors.
