- (0:30) – Learning from Warren Buffett during the stock market sale
- (4:00) – 13f Breakdown: What Did Berkshire Hathaway Buy?
- (2:50) – Which positions did Warren Buffett sell?
- (27:40) – Key takeaways from Warren Buffett’s market moves: OXY, CVX, BAC, AAPL, USB, BK, C, ALLY, ATVI, CE, VZ, GM, AMZN
- [email protected]
Welcome to Episode 294 of the Value Investor Podcast.
Each week, Tracy Reineck, Editor of Jax Value Investor Portfolio, shares some of her top value investing tips and stock picks.
Second Quarter 13-F has come to an end, and we now know what Berkshire Hathaway bought, sold, bought, or didn’t do during the quarter led by Warren Buffett.
Just a reminder that 13-Fs are filed within 45 days of the end of the previous quarter. By the time we receive them, the trades are already out of date.
But the filing still gives us a glimpse of what Buffett is doing with Berkshire Hathaway’s portfolio in general.
Chevron and Occidental Petroleum: Have Buying Continued?
1. Chevron (CVX Quick QuoteCVX – Free Report)
Berkshire Hathaway went all-in on oil stocks in the first quarter when it boosted its current position by buying more than $20 billion in Chevron stock.
Chevron became the fourth largest in the portfolio.
In the second quarter, it worked again, adding another 1% position. Berkshire now owns 8.2% of the company, or 161.4 million shares.
Chevron yields 3.6%. Based on the number of shares owned at the end of the second quarter, Berkshire should start paying a dividend of at least $229.2 million starting in September.
2. Occidental Petroleum (OXY Quick QuoteOXY – Free Report)
Berkshire also increased its position in Occidental Petroleum with a $1.4 billion purchase. If you include warrants, it now owns about 30% of the company.
Because it’s such a large shareholder, Berkshire must disclose its new acquisitions within 48 hours instead of waiting until the 13F period. It also buys into the third quarter in July and August when shares fell.
In the last 3 months, Occidental Petroleum shares are down 7%.
Is this a buying opportunity for Chevron and Occidental Petroleum this year?
Has Buffett bought more apples?
3. Apple (AAPL Quick QuoteAAPL – Free Report)
Apple is Berkshire Hathaway’s largest stock position with 894.8 million shares worth about $122.3 billion.
Buffett only entered the position in the first quarter of 2016. He’s sold a few shares over the years to reduce the weight of the position, but he actually bought an additional 3.88 million shares in the second quarter when Apple sold.
Apple pays a dividend that currently yields 0.5%, but Berkshire owns so many shares that it recently received a $208 million dividend payment.
Apple shares are up 16% over the past month.
Are Stocks Too Hot to Handle Now?
Arbitrage and Amazon
4. Activision Blizzard (ATVI Quick QuoteATVI – Free Report)
Warren Buffett admitted at Berkshire Hathaway’s annual meeting that he traded an arbitrage over the deal between Activision Blizzard and Microsoft announced earlier this year. Berkshire already had a position in Activision at the time the deal was announced, but relegated it in the second quarter.
Microsoft’s offer is $95 per share and Activision Blizzard is currently trading at around $80.
If the deal closes, Berkshire gets the difference, known as “arbitrage.”
Berkshire now owns 8.3% of Activision Blizzard.
Should you meditate on Activision Blizzard too? There is a risk if the deal doesn’t go through.
5. Amazon (AMZN Quick QuoteAMZN – Free Report)
Berkshire shocked the world in 2019 when it reported that it had bought shares in Amazon in the first quarter of that year. Buffett needed to reassure shareholders that the shares had real “value.”
By June 2022, Amazon shares had fallen 38% over the year. Would Berkshire Finally Join Its Short Position?
But no, Berkshire didn’t buy into the second quarter. Shares are up 25% over the past month, so they’re not as cheap as they used to be this summer.
Did Berkshire Miss a Shopping Opportunity on Amazon?
What else did Berkshire Hathaway buy and sell, or not, during the second quarter?
Tune in to this week’s podcast to find out.
[In full disclosure, Tracey owns shares of AMZN in her own personal portfolio.]