[ad_1]
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Berkshire Hathaway (BRK.B, 198.31 $) Warren Buffett, President and CEO, did not find much to his liking in 2019. "data-reactid =" 29 "> Berkshire Hathaway (BRK.B, $ 198.31) President and CEO Warren Buffett did not find much for his taste in 2019.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The Oracle of Omaha bought and sold left and right end of 2018. He took advantage of the near-market fourth-quarter market to close deals and exit a few underperforming investments, totaling 17 common share transactions. But with significantly higher prices in 2019, Buffett reduced sales volume, making 10 such trades in the first quarter and only six in the three months ended June 30. "Data-reactid =" 30 "> Omaha's Oracle bought and sold left and right end 2018. He took advantage of the near-market fourth-quarter market to close markets and sell some underperforming investments totaling 17 common share transactions, but with significantly higher prices in 2019, Buffett has 10 of these movements in the first quarter and only six in the three months ended June 30.
Nevertheless, we can distinguish some elements of what Buffett is doing. We will now review the most recent changes to the Berkshire Hathaway stock portfolio.
The US Securities and Exchange Commission's own rules require Buffett to explain these movements. All portfolio managers with assets greater than $ 100 million must file a 13F form quarterly to disclose each change in ownership of the shares. This is an important level of transparency for anyone adequately funded to make a significant impact on a security through their investment. And in this case, he helps people who appreciate Buffett's ideas to follow closely what he's doing. Some investors consider that the purchase by Berkshire is an important seal of approval. (Do not forget: some of Berkshire's holdings are influenced or even downright decided by Lieutenants Ted Weschler and Todd Combs.)
This is what Warren Buffett's Berkshire Hathaway was buying and selling in the second quarter of 2019, based on the most recent 13F filed on August 14th. The list includes six changes to the stock portfolio and a seventh significant investment.
<h3 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "SEE ALSO: The Berkshire Hathaway Portfolio: The 47 Buffett Shares"data-reactid =" 34 "> SEE ALSO: The Berkshire Hathaway Portfolio: The 47 Buffett Shares
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Getty Images"data-reactid =" 52 ">Getty Images
Action: Added to bet
Shares held: 537,300 (+ 11% compared to the first quarter)
Value of the bet: $ 1,017,447,000
<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Berkshire Hathaway has not opened new positions during the three-month period ended June 30, which makes its purchase of 54,000 Amazon.com (AMZN, $ 1,776.12) shares its largest second-quarter addition. The Buffett holding company increased its interest by 11%. "Data-reactid =" 57 "> Berkshire Hathaway did not open any new positions in the quarter ended June 30. Its acquisition of 54,000 Amazon.com (AMZN, ($ 1,776.12) shares its largest addition Q2: Buffett's holding company increased its interest by 11%.
Interestingly, this position has absolutely nothing to do with Buffett.
Berkshire's CEO told CNBC in May, when Berkshire initially introduced AMZN into the group, that "one of the money-managing guys in the office" had launched the call. This is a reference to Weschler and Combs.
Good to Buffett, however, to have admitted that even he can make mistakes. In May, he had also stated that he did not believe in Amazon.com as much as he should have done.
"(Amazon) far exceeded anything I thought I could do, because if I really felt it could have been done, I should have bought it," she said. he declared. "I did not know it had potential, I messed it up."
Amazon has a good, but not explosive, 2019, with about 18% higher returns than the S & P 500 by about five percentage points. That said, it is possible that the significant downturn of AMZN between early May and early June (the stock has dropped about 10% in one month) has been another interesting buying point for Buffett.
<h3 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "SEE ALSO: 13 best shares to buy for the next stock market correction"data-reactid =" 63 "> SEE ALSO: 13 best shares to buy for the next stock market correction
Action: Added to bet
Shares held: 927,248,600 (+ 3% from the first quarter)
Set value: 26,890,210,000 USD
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Warren's love story Buffett with US banks has continued in Berkshire has strengthened its positions in two gigantic US financial stocks, including a 3% increase in its capital in Bank of America (LAC$ 26.25). Data-reactid = "90"> Warren Buffett's love affair with US banks continued in the second quarter, with some extra pecks. Berkshire strengthened its positions in two giant US financials, including a 3% increase in its stake in Bank of America (LAC, $ 26.25).
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Buffett really stepped up his banking purchases in the second half of 2018, starting or increasing the positions of the Bank of New York Mellon (BK), Goldman Sachs (GS), JP Morgan (JPM) and Wells Fargo (WFC). But Bank of America's role in Berkshire's portfolio dates back seven years later. "Data-reactid =" 91 "> Buffett has really stepped up its banking purchases in the second half of 2018, starting or strengthening the positions of Bank of New York Mellon (BK), Goldman Sachs (GS), JPMorgan (JPM) and Wells Fargo (WFC), but the role of Bank of America in the Berkshire portfolio dates back seven years.
In 2011, Warren Buffett invested $ 5 billion in BofA, which, like most other banking stocks, was shaken by the shock of the Great Recession and the financial crisis. But his investment began in preferred shares offering a return of 6%, as well as mandates allowing him to buy BAC shares at a discounted price (common shares of the company). In 2017, he withdrew these preferred options and exercised the warrants, realizing a net profit of $ 12 billion to become BofA's largest shareholder.
At the same time, BRK.B's current holdings represent a 9.1% stake in the large bank.
<h3 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "SEE ALSO: 30 Dow stocks ranked: analysts weigh"data-reactid =" 94 "> SEE ALSO: Dow's 30 ranked stocks: Analysts weigh
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Getty Images"data-reactid =" 112 ">Getty Images
Action: Added to bet
Shares held: 132,459,618 (+ 2% from the first quarter)
Value of the bet: $ 6,940,884,000
<p class = "canvas-canvas-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The other bank added? U.S. Bancorp (USB$ 51.28). Berkshire Hathaway increased its position by about 2% in the second quarter. "Data-reactid =" 117 "> The other bank was added: US bank Bancorp (USB key, $ 51.28) Berkshire Hathaway's position increased by about 2% in the second quarter.
The United States of America Bancorp is the fifth largest bank in the United States in terms of assets and its largest regional bank (nicknamed "super-regional"). And like many other major US financial institutions, USB has had a moderately successful but still frustrating year.
What appeared to be a backdrop of rising interest rates (which allow banks to charge more for products such as mortgages and auto loans, without having to pay much more interest on accounts savings and others) has changed rapidly. Earlier this year, the Federal Reserve decided to maintain rates, and then decided to lower its key rate in July. This weighed on the financial sector, including USB, which grew about 12% in 2019 but lags behind the S & P 500 index by one point. .
Berkshire's recently strengthened position translates into an 8.3% stake in US bank Bancorp and represents 3.3% of Berkshire's portfolio.
<h3 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "SEE ALSO: 12 bank stocks that Wall Street likes the most"data-reactid =" 121 "> SEE ALSO: 12 bank stocks that Wall Street likes the most
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Getty Images"data-reactid =" 139 ">Getty Images
Action: Added to bet
Shares held: 5,171,890
Value of the participation: $ 971,074,000 (+ 1% compared to the first quarter)
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In October 2018, International Business Machines (IBM) announced that it would pay $ 34 billion in cash for the purchase of Red Hat, which would strengthen IBM's cloud offerings. "This acquisition brings together the best hybrid cloud providers and will enable businesses to securely transfer all business applications to the cloud," Red Hat said in its initial press release. "Data-reactid =" 144 "> In October 2018, International Business Machines (IBM) announced that it would disburse $ 34 billion in cash to buy Red Hat, which would strengthen IBM's cloud offerings. "This acquisition brings together the best hybrid cloud providers and allows businesses to securely move all business applications to the cloud," said Red Hat in its initial press release, which revealed the acquisition.
The announcement of the final disappearance of Red Hat has begun. The end of the agreement was announced for the month of July.
But the inevitable disappearance of Red Hat did not deter Buffett, who had initiated his participation in the fourth quarter of 2018, to then add it to the first and second quarters of this year.
His latest purchase was a small increase – 61,419 shares, an increase of 1% from Berkshire's position in the first quarter. With a total stake of about 5.2 million shares, Berkshire held about 2.9% of Red Hat at the end of the second quarter, just days before the takeover by IBM.
<h3 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "SEE ALSO: 6 tracks Tech to China-Proof Your Portfolio"data-reactid =" 148 "> SEE ALSO: 6 technological actions in China, to the test of your wallet
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Getty Images"data-reactid =" 166 ">Getty Images
Action: Reduced
Shares held: 5,426,609 (-4% from the first quarter)
Value of the bet: $ 2,144,487,000
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The second quarter of 2019 ushered in another haircut for communications from the Berkshire Charter (CHTR$ 380.94). Data-reactid = "171"> The second quarter of 2019 ushered in a new haircut for Berkshire's participation in Charter Communications (CHTR, $ 380.94).
<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Charter Communications is the company behind Spectrum, which is the second cable -operator in the United States behind Comcast (CMCSA). Spectrum also offers Internet, telephone and other communication services. Charter increased significantly in 2016 as a result of two acquisitions for Time Warner Cable and its sister company Bright House Networks. "Data-reactid =" 172 "> Charter Communications is the parent company of Spectrum, the second largest cable operator in the US Behind Comcast (CMCSA), Spectrum also offers Internet and telephony services and other communications services The charter expanded significantly in 2016 with two acquisitions, for Time Warner Cable and sister company Bright House Networks.
Berkshire's position is not terribly old (Buffett's entry in 2014), but it has often been reduced since early 2017, including 5.4 million additional shares in the second quarter. This represents a significant drop from the 9.4 million shares it held just over two years ago, but still remains sufficient for a 2.4% stake.
It's hard to blame Charter for this year's sales. The CHTR has more than doubled the S & P 500 with a gain of nearly 34% since the beginning of the year. This also includes a significant drop since the end of July – partly in the overall gloomy market, but also a reflection of a disappointing second quarter earnings report, according to which revenues and profits have been below expectations.
<h3 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "SEE ALSO: The 10 best actions that reflect the diversity of the sexes"data-reactid =" 175 "> SEE ALSO: The 10 most representative values of gender diversity
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Getty Images"data-reactid =" 193 ">Getty Images
Action: Staked pile
Shares held: 0 (-100% from the first quarter)
Value of the bet: $ 0
<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "On its face, the biggest reshuffle of the portfolio of Berkshire Hathaway was the complete release of one of its lesser known names: USG Corp. (USG$ 380.94). "Data-reactid =" 198 "> Obviously, the biggest reshuffle of Berkshire Hathaway's portfolio was the complete release of one of its lesser known names: USG Corp. (USG, $ 380.94).
USG Corp. – or United States Gypsum Corporation, if you do not like brevity – is as boring as drywall. Which is appropriate because it is one of its primary products. USG is a specialist in building materials that manufactures, among other things, drywall and joint compounds. (The joint compound is one of the many products made by USG from gypsum, hence its name).
But if the move seems dramatic, it has been in the cards for over a year. The German Knauf, which also operates in the drywall business, announced in June 2018 that it would buy USG for $ 7 billion. Berkshire Hathaway, who then held 31% stake, put significant pressure on USG to agree to the deal – which ended up being an issue for Buffett on what he called a "disappointing" investment.
The agreement was concluded in April 2019, thus ending Berkshire's involvement.
<h3 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "SEE ALSO: 5 stock picks for the war of eternal commerce of America"data-reactid =" 202 "> SEE ALSO: 5 stock picks for the Eternal Trade War of America
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Getty Images"data-reactid =" 220 ">Getty Images
Action: investment
Shares held: 100,000 *
Value of the bet: $ 10 billion *
Technically, this final transaction is not part of the Berkshire Hathaway stock portfolio and has been in the news for months. But it's still a remarkable action of the second quarter.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Warren Buffett has not been much involved in energy end of April 2019, he announced that he would invest $ 10 billion in the integrated oil and gas game Occidental Petroleum (OXY, $ 43.96) to help finance its bid for the Anadarko Petroleum exploration-production company. In return, Berkshire received 100,000 preferred shares yielding 8%. "Data-reactid =" 226 "> Warren Buffett has not been involved much in energy stocks in recent years.But by the end of April 2019, he had announced that he would invest $ 10 Occidental Petroleum (OXY, 43 , $ 96) participated in the financing of its public exploration and production offer for the exploration and production group Anadarko Petroleum In return, Berkshire received 100,000 preferred shares, yielding 8%.
<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Western has presented its offer of 38 billion dollars for the buyout of Anadarko after the latter had already accepted a $ 33 billion offer from Chevron (CLC). Anadarko accepted the offer on the rise and on August 8, its shareholders approved the deal. While the deal was still in the air, militant investor Carl Icahn, holder of 5% stake in OXY, voiced criticism, calling the deal "worse than I have never seen "and" excessively overvalued ". "Data -reactid =" 227 "> Occidental launched its $ 38 billion purchase offer on Anadarko, which had already accepted a $ 33 billion Chevron (CVX) bid. superior bid and, August 8, its shareholders While the deal was still in the air, militant investor Carl Icahn – who owned 5% stake in OXY – voiced criticism, qualifying this agreement as "one of the worst I've ever seen" and too expensive. "
But Buffett had to do well for himself. Icahn told CNBC that Buffett pulled a quick one on CEO Vicki Hollub. "Warren did a great job for him and Berkshire … but they did not have to give him a $ 1.5 billion gift," he said.
* Other purchases on this list are common shares. Buffett received 100,000 preferred shares for its investment in Occidental.
Kyle Woodley had long been AMZN at the time of writing these lines.
<h3 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "SEE ALSO: 13 high dividend stocks to watch"data-reactid =" 231 "> SEE ALSO: 13 high dividend stocks to watch
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "CHOICE OF EDITOR
"data-reactid =" 232 ">CHOICE OF EDITOR
Copyright 2019 Editors of Kiplinger Washington
[ad_2]
Source link