Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Berkshire Hathaway’s 2Q Portfolio Changes: Right Strategy Going Forward

ByDavid Kass
Published 08/16/2013, 03:40 AM
Updated 07/09/2023, 06:31 AM

According to its SEC Form 13F filing released this morning, Berkshire Hathaway’s largest purchases during the second quarter of 2013 were an initial investment currently valued at $600 million in the Canadian oil and natural gas producer Suncor (SU), a $600 million (current value) addition to its total position of $2.9 billion in US Bancorp (USB), and a $500 million (current value) addition to its total stake of $1.4 billion in General Motors (GM). Smaller additions were made to previous investments in Chicago Bridge and Iron (CBI), Verisign (VRSN), Bank of New York Mellon (BK), Wells Fargo (WFC), and National Oilwell Varco (NOV). The additions to WFC and USB were apparently made by Warren Buffett. Each of the other transactions are believed to have been made by Warren Buffett’s new portfolio managers, Todd Combs or Ted Weschler.

Berkshire also noted that confidential information was omitted from the 13F filing. This probably indicates that Warren Buffett is accumulating a multi-billion dollar position in a large publicly traded company (“commercial or industrial” – SEC Form 10Q filing). The last time Berkshire requested confidential treatment was in 2011 when it was investing $10 billion in IBM.

Berkshire also reduced its minor stakes in Kraft (KRFT) and Mondelez (MDLZ), and eliminated its holding in Gannett (GCI).

I am quoted in a Bloomberg article on this topic:

“His portfolio has been moving up nicely,” said David Kass, a professor at the University of Maryland’s Robert H. Smith School of Business who has taken students to meet Buffett in Omaha. His allocation to stocks “not only has been the right strategy until now, it’s very likely to be the right strategy going forward.”

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.