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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 first quarter, according to the latest 13F regulatory filing with the Securities and Exchange Commission. The holdings are reported as of June 30, 2023.
Berkshire Hathaway’s portfolio holdings: Where Buffett & Co. are buying/adding
Capital One Financial (COF)
Berkshire added to its position in Capital One Financial during the quarter as bank stocks suffered due to the regional bank crisis. Berkshire held nearly 12.5 million shares, now worth $1.36 billion, up from just over 9.9 million shares at the end of the first quarter. Capital One is a bank that specializes in credit cards, auto loans and banking accounts.
D.R. Horton (DHI)
Berkshire started a new position in homebuilder D.R. Horton in the second quarter, piling on nearly six million shares. The stake is now worth about $736 million, and it comes amid tight housing conditions as well as high (and rising) mortgage rates.
Along with D.R. Horton, Lennar joined Berkshire’s stable of homebuilder stocks. The conglomerate acquired 152,572 shares in the second quarter, now worth about $18.9 million.
NVR is yet another homebuilder that joined Berkshire’s portfolio in the second quarter. The stake of just over 11,000 shares is now worth $68.4 million.
Occidental Petroleum (OXY)
Berkshire continued to increase its position in Occidental Petroleum where it’s the largest shareholder. Berkshire added more than 12 million shares in the quarter, putting its stake at around 224 million shares in the oil and gas giant. The stake is now worth more than $14.6 billion. Berkshire has increased its Occidental holdings in five of the last six quarters.
Berkshire Hathaway’s portfolio holdings: Where Buffett & Co. are selling
General Motors (GM)
Berkshire cut its stake in General Motors by 45 percent during the second quarter after slashing it 20 percent in the first quarter. The company now owns 22 million shares worth about $750 million. The position was first established back in 2012, but Berkshire has sold the stock in four of the last five quarters.
Globe Life (GL)
Berkshire slashed its position in insurance company Globe Life by more than 60 percent, taking the stake from 6.35 million shares to just 2.51 million. The newly reduced position is worth around $289 million.
Marsh & McLennan (MMC)
Berkshire closed out its entire stake in insurance brokerage Marsh & McLennan, offloading a stake of nearly 405,000 shares in the second quarter.
Vitesse Energy (VTS)
After establishing a new (but small) position during the first quarter in Vitesse Energy, Berkshire exited the position in the second quarter. The position was worth less than $1 million at the end of March. Vitesse is an independent energy company that owns financial interests in oil and gas wells.
Berkshire reduced its Chevron holdings during the second quarter, trimming its stake about 7 percent to about 123.1 million shares at the end of June. The company is one of Berkshire’s five largest holdings and comes with a dividend yield above 3 percent.
Celanese Corp. (CE)
After shrinking its position in the first quarter, Berkshire continued selling down its stake in Celanese, reducing it by just over 39 percent during the second quarter. The position was established in the first quarter of 2022 and is down to 5.36 million shares, now worth about $666 million. Celanese is a materials provider to the chemicals, paints and coatings industries.
Activision Blizzard (ATVI)
Berkshire reduced its stake in video game maker Activision Blizzard, which has agreed to be acquired by Microsoft for $95 per share in cash. Berkshire now holds 14.7 million shares, down from 49.4 million at the end of the first quarter. Buffett said at Berkshire’s annual meeting in April 2022 that he established the position as an arbitrage bet on the deal’s closing. Activision recently traded for around $91 per share, as it works on deal concessions with U.K. regulators.
McKesson Corp. (MCK)
Berkshire continued cutting its stake in pharmaceutical distributor McKesson, closing out the position during the quarter. The position was first established in early 2022. The stake in the Irving, Texas-based company was worth about $815 million at the end of March.
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 second quarter accounted for about 75 percent of the portfolio’s value, and included these top five positions (valuations as of June 30, 2023):
- Apple (AAPL) – $177.6 billion
- Bank of America (BAC) – $29.6 billion
- American Express (AXP) – $26.4 billion
- Coca-Cola – $24.1 billion
- Chevron (CVX) – $19.4 billion
Buffett spent about $1.4 billion repurchasing Berkshire stock in the second quarter of 2023. This is an indication that he 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.
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.