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 made during the third quarter, according to the latest 13F regulatory filing with the Securities and Exchange Commission. All holdings data is as of September 30, 2021.
Berkshire Hathaway’s portfolio holdings: Where Buffett & Co. are buying/adding
Berkshire increased its position in oil company Chevron by more than 24 percent during the third quarter. The stake, which was first purchased in the third quarter of 2020 and halved earlier this year, was worth about $2.9 billion at the end of the quarter.
Royalty Pharma (RPRX)
A new $475 million position was established during the quarter in Royalty Pharma, an $18 billion company that focuses on buying pharmaceutical royalties. The New York-based company carries a dividend yield of about 1.6 percent and has annual sales of more than $2 billion.
Floor & Decor Holdings (FND)
Berkshire also took on a new position in Atlanta-based Floor & Decor Holdings, a specialty retailer of flooring products such as wood, laminate, tile and vinyl. The $100 million stake could benefit from the ongoing housing boom as people look to build and renovate homes. Floor & Decor caters to professional installers, commercial businesses and do-it-yourself buyers.
Berkshire Hathaway’s portfolio holdings: Where Buffett & Co. are selling
Marsh & McLennan (MMC)
Berkshire cut its stake in insurance broker Marsh & McLennan for the second consecutive quarter, reducing it by about one-third during the most recent quarter. The position was first established in the third quarter of 2020, but has nearly been halved since the end of March 2021. Marsh & McLennan’s stock price has increased nearly 50 percent so far this year.
AbbVie (ABBV), Bristol-Myers Squibb (BMY), Merck (MRK) and Organon (OGN)
Berkshire also reduced its stake in drugmakers AbbVie and Bristol-Myers Squibb. It also completely eliminated positions in Merck and Organon, which was spun out of Merck earlier this year. The AbbVie position was reduced by nearly 30 percent and was worth about $1.6 billion at the end of the quarter, while Bristol-Myers was cut by 16 percent to $1.3 billion.
Charter Communications (CHTR)
A stake in broadband and cable company Charter Communications was reduced by almost 20 percent during the third quarter. It was still worth more than $3 billion at quarter end and has performed well for Berkshire since the position was first bought during the second quarter of 2014. The stock traded for about $140 per share in May of 2014 and traded above $800 during the third quarter of 2021.
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 top holdings didn’t change during the third quarter and just four companies accounted for about 70 percent of the portfolio’s value.
- Apple (AAPL) – $128.4 billion
- Bank of America (BAC) – $43.9 billion
- American Express (AXP) – $25.4 billion
- Coca-Cola (KO) – $21.0 billion
Buffett has spent more than $20 billion repurchasing Berkshire stock so far in 2021, including $7.6 billion during the third quarter. This is an indication that the company believes the shares are undervalued and continuing shareholders will benefit from the buybacks.
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.
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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.