Mario Tama/Getty ImagesWarren 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 fourth quarter, according to the latest 13F regulatory filing with the Securities and Exchange Commission. The holdings are reported as of Dec. 31, 2022. The S&P 500 declined nearly 20 percent in 2022.
Berkshire Hathaway’s portfolio holdings: Where Buffett & Co. are buying/addingLouisiana-Pacific Corp. (LPX)Berkshire boosted its position in Louisiana-Pacific by more than 20 percent during the quarter to more than 7 million shares. Louisiana-Pacific is a building solutions company that serves new home construction, repair and remodeling markets. The Nashville-based company operated 25 plants across the U.S., Canada, Chile and Brazil as of Dec. 31, 2021.
Paramount Global (PARA)Berkshire added slightly to its existing position in Paramount Global, which operates film and television studios, cable networks such as MTV and Nickelodeon, and the CBS Network. Berkshire held 93.6 million shares at the end of 2022, up from 91.2 million shares in September.
Apple (AAPL)Berkshire increased its stake in Apple, its largest position, by a small amount during the quarter. Berkshire now holds more than 895 million shares of the iPhone maker, which it first began buying in the first quarter of 2016. Berkshire’s Apple stake was worth more than $100 billion at the end of 2022.
Berkshire Hathaway’s portfolio holdings: Where Buffett & Co. are sellingTaiwan Semiconductor (TSM)Berkshire slashed its stake in Taiwan Semiconductor by about 86 percent during the quarter. The position had only just been disclosed in the company’s third-quarter filing. The Taiwan-based company makes advanced computer chips for a global customer base including Apple, in which Berkshire holds a major stake. Berkshire held about 8.3 million shares of Taiwan Semiconductor at the end of 2022.
Chevron (CVX)Berkshire slightly reduced its Chevron holdings during the fourth quarter, selling about 2.4 million shares to bring its stake to about 163 million shares at the end of December. The company is one of Berkshire’s five largest holdings and comes with a dividend yield above 3 percent.
U.S. Bancorp (USB)Berkshire cut its position in U.S. Bancorp by more than 90 percent, reducing its stake from 77.8 million shares at the end of the third quarter to 6.7 million at the end of 2022. Berkshire has held a stake in the bank for more than 15 years.
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 52.7 million shares, down from 60.1 million at the end of the third quarter. Buffett said at Berkshire’s annual meeting in April that he established the position as an arbitrage bet on the deal’s closing. Activision recently traded for around $76 per share, but the Federal Trade Commission sued to block the deal in December, arguing it would be anti-competitive.
Bank of New York Mellon (BK)Berkshire cut its position in Bank of New York Mellon by nearly 60 percent during the fourth quarter, cutting its stake by more than 37 million shares. The investment was worth about $1.1 billion as of the end of December.
McKesson Corp. (MCK)Berkshire cut its stake in healthcare distributor McKesson by about 10 percent during the quarter. The position was first established in the first quarter of 2022 and was increased during the second quarter. The stake in the Irving, Texas-based company was worth about $1.1 billion at the end of 2022.
Kroger (KR)Berkshire further reduced its holdings in the large grocer Kroger, paring its stake by a little over 0.53 percent. Berkshire trimmed more than 268,000 shares from its position during the fourth quarter, leaving a stake that was valued at about $2.2 billion. Kroger announced in October its plan to acquire rival Albertsons in a $24.6 billion deal it said would help it better negotiate with vendors.
Ally Financial (ALLY)Berkshire reduced its position in Ally Financial by less than 1 percent during the quarter. The stake was established in the first half of 2022, but the stock declined through the end of the year. Berkshire sold 200,000 shares during the fourth quarter and its position was worth about $730 million at the end of 2022.
Top stock holdings in Buffett’s portfolioBerkshire takes a concentrated approach with its investments, typically holding the majority of its portfolio in just a few companies. Its top holdings at the end of the fourth quarter accounted for about 76 percent of the portfolio’s value, and included these top five positions:
Apple (AAPL) – $116.3 billion
Bank of America (BAC) – $33.5 billion
Chevron (CVX) – $29.3 billion
Coca-Cola – $25.4 billion
American Express (AXP) – $22.4 billion
Buffett spent about $5.2 billion repurchasing Berkshire stock in the first nine months of 2022. This is an indication that he believes the shares are undervalued and continuing shareholders will benefit from the buybacks.
Information on Berkshire’s fourth quarter share repurchases will be available when the annual report is released later this month.
Bottom lineBuffett 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.
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