Buffett's investment in the Class A shares dates to the fourth quarter of Berkshire Hathaway picked up the Class C shares, which have no voting power, in the first quarter of The sales amounted to 3,, shares, which comprised a mere 0. No wonder, then, that Buffett has taken a hatchet to this Malone-linked bet.
B exited its entire stake of , shares in the biotechnology firm, which it first bought in the fourth quarter of It was never much of a position for the holding company to begin with. Indeed, although Buffett has a history of making bets on the healthcare sector, the small position size always signalled that this might have been a pick from co-portfolio managers Ted Weschler or Todd Combs.
Biogen's fate is most heavily tied at the moment to its Alzheimer's treatment, Aduhelm. And lately, those fates haven't looked so good. The Food and Drug Administration in July called for an investigation into the recent approval of the Aduhelm and later narrowed its indications for use. The stake made sense at the time. After all, Buffett has long been a fan of the paint industry; Berkshire Hathaway bought house-paint maker Benjamin Moore in Buffett has now become the third-largest investor by virtue of owning about 8.
RH operates retail and outlet stores across the U. It also owns Waterworks, a high-end bath-and-kitchen retailer with 14 showrooms.
While brick-and-mortar retailers have struggled mightily over the past few years thanks in part to the rise of e-commerce, RH has found success catering to the upper crust. And that success continued throughout the COVID pandemic as Americans, forced to work from home, decided to spend on improving their environs. RH shares have more than tripled since Jan.
Buffett hasn't said much about RH, making it difficult to tell whether this is his idea, or a project of one of his lieutenants, Ted Weschler or Todd Combs. But the stake does fit broadly with Buffett's worldview. Buffett stocks tend to be bets on America's growth, which is exactly what a bet on housing and housing-related industries is. As we mentioned previously, Buffett loves the insurance business — he just hasn't been too keen on owning mere equity stakes in them.
But in Q1 of this year, the industry accounted for two of his five buys, and his lone new position. Like most insurance firms, you won't necessarily expect profits to grow in a perfectly straight line year after year. But revenues have improved without interruption over the past four years, and net income is up in three of the past five years. That operational strength has led to superior returns against both the market and its peers.
Berkshire hasn't exactly bet the farm on Aon. The 4. B's position by more than a fifth after adding a huge chunk in the prior quarter too. Berkshire Hathaway turned a few heads during the fourth quarter of , when it initiated its But given what was to come, it now looks like a savvy pick. After all, the massive supermarket chain treated shareholders well during the worst of the pandemic and has continued to outperform in Kroger operates roughly 2, retail food stores operating under such banners as Dillons, Ralphs, Harris Teeter and its namesake brand, as well as 1, gas stations and even jewelry stores under banners including Fred Meyer Jewelers and Littman Jewelers.
B added That followed the purchase of With nearly 62 million shares total, Berkshire Hathaway is the third-largest owner of Kroger shares, with its 8. It's only a middle-of-the-pack position at just 0. But it certainly belongs. Unlike other recent new positions such as Amazon. The pharmaceutical giant — in which Buffett still owns 9. As a result of the move, Berkshire found itself owning 1.
Note well that Buffett sold more than half of Berkshire's stake in Merck over the course of Q2. Organon, accounting for 0. Whether Buffett keeps it remains to be seen. Skip to header Skip to main content Skip to footer. Home investing stocks. The 21 Best Stocks to Buy for the Rest of Bancorp Getty Images.
Buffett believes the huge quarterly swings in net results are usually meaningless, and result from accounting rules he doesn't control. Berkshire said supply chain disruptions have boosted prices for materials and freight, forcing businesses such as Clayton Homes mobile homes and Acme bricks to raise prices - and caused a shortage of truck drivers at McLane grocery distribution.
It said the disruptions also significantly reduced new vehicle sales at its auto dealer unit and boosted costs for its consumer products businesses, though profit is rising from Forest River RVs, Brooks running shoes and Duracell batteries. In part because of Delta and the disruptions, some caused by labor shortages , U. And given the latest action in the aforementioned SIRI sale and the reduction in Liberty Global Class A shares, it appears that Berkshire is unwinding a portion of its Malone-backed bets.
B portfolio to 0. Liberty Global bills itself as the world's largest international TV and broadband company, with operations in seven European countries. Berkshire's investment in the Class A shares dates to the fourth quarter of It picked up the Class C shares, which have no voting power, in the first quarter of Berkshire now owns just 1. Now, it's all but gone.
Buffett slashed BRK. B's remaining stake almost to the bone in Q1, leaving nothing but a rump position in the nation's third largest bank by assets. The scandal-plagued mega-bank has been reeling for years in the wake of revelations that it opened millions of phony accounts, modified mortgages without authorization and charged customers for auto insurance they did not need.
The business has been slow to recover, as has the stock. Buffett has sold off Wells Fargo shares in numerous quarters since the start of In Q2 , he jettisoned Buffett really brought out the wrecking ball in Q1, in the form of a B's remaining stake.
Berkshire Hathaway, once a top stockholder, now owns 0. This relationship is all but over. By the same token, it should be no surprise that SYF was ushered out as Buffett continues to hack away at his financial-sector holdings.
Synchrony, a major issuer of charge cards for retailers, was spun off of GE Capital in It's both a lender and a payments processor — like Buffett's beloved American Express — but it caters to customers who skew more toward the middle and lower end of the income scale. The outperformance was even worse before Q1, with the market outpacing SYF The exit is no small loss for Synchrony; Buffett was the firm's seventh-largest shareholder as of the end of Q4 The ideal holding period for a Buffett stock might be forever, but the two stakes he exited in Q1 had been around for shorter than five years each.
Suncor — an integrated energy giant whose operations span oil sands developments, offshore oil production, biofuels and even wind energy — also sells its refined fuel via a network of more than 1, Petro-Canada stations.
And for a few months, it was the lone position in the Berkshire Hathaway portfolio. Buffett quickly finished the job during the first quarter, ditching his remaining position of nearly 14 million shares. It's hard to blame Buffett too much. Funnily enough, this was the second time Buffett quickly dabbled with Suncor. Berkshire Hathaway originally invested in the energy giant during , then sold the entirety of the position three years later.
Indeed, shares have more than quadrupled since this time last year, when many Americans started to realize that working from home was going to last more than just a few weeks, and thus began making plans to improve their new workplace environs. Berkshire boasts Nebraska Furniture Mart among its subsidiaries, but added to its home furnishings exposure in Q3 when it brought RH into the fold.
RH operates retail and outlet stores across the U. While brick-and-mortar retailers have struggled mightily over the past few years thanks in part to the rise of e-commerce, RH has found success catering to the upper crust. That success has since been amplified by the COVID pandemic and a shift in where Americans have been putting their money to work. It's hard to tell whether this was an Oracle of Omaha buy, or a project of one of his lieutenants, Ted Weschler or Todd Combs.
Buffett has been mostly mum on RH. Still, the stake fits broadly with Buffett's worldview. Buffett stocks tend to be bets on America's growth, which is exactly what a bet on housing and housing-related industries is. Verizon already looked at home in the Berkshire Hathaway portfolio.
While BRK. B famously doesn't pay out a dividend, Buffett is happy to collect them. Indeed, its ability to pay a healthy distribution puts it among the top dividend stocks for retirement investors.
When Berkshire initiated its stake in Verizon in Q4 , it bought with both hands, picking up That was good for a 3. Berkshire also remains the fourth-largest owner of VZ shares at 3. Bulls like Verizon for both its growth prospects in the era of 5G networking, its defensive characteristics and the reliable income stream it delivers to investors.
And in this case, Berkshire was much more aggressive about its second bite. But up until recently, they've never been a major factor in its equity portfolio.
But that wind has changed direction over the past couple quarters, via both his MMC addition and Berkshire's lone new stake in Q1 , which we'll get to momentarily. As for Marsh McLennan: Berkshire initiated a 4.
It wasn't a major position, at just 0. Shares in MMC, which provides various risk, strategy and consulting services, are longtime market laggards. The company also pays a modest dividend yielding 1. Kroger operates roughly 2, retail food stores operating under such banners as Dillons, Ralphs, Harris Teeter and its namesake brand, as well as 1, gas stations and even jewelry stores under banners including Fred Meyer Jewelers and Littman Jewelers.
Berkshire Hathaway turned a few heads during the fourth quarter of , when it initiated its But given what was to come, it now looks like a savvy pick. Of course, as investors' focus started to shift away from essential retailers to opening plays, Kroger has underperformed.
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