Nicknamed the Oracle of Omaha, Warren Buffett is an established name on the trading floor with his investment company Berkshire Hathaway. Getty Images/Bill Pugliano
Warren Buffett’s Berkshire Hathaway released its US stock portfolio as of June 30 last Monday.
Berkshire increased its holdings in Apple, Chevron and Occidental Petroleum and adjusted its bank holdings.
Here’s an in-depth look at the top three innings in the second quarter.
Warren Buffett’s holding company, Berkshire Hathaway, released a quarterly portfolio update Monday, adding its US portfolio as of June 30. Stock holdings were disclosed. According to him, the well-known group of investors increased its largest position during this period, increased its energy holdings and revised its financial bets.
Another bite from “Apple”
Apple stock traded at $129 in June, down almost 30 percent from its peak of $183 earlier this year. Buffett and his team took advantage of that: In the second quarter, he acquired nearly four million more shares of the smartphone giant, increasing his stake to 895 million shares, or 5.6 percent.
Apple now accounts for more than 40 percent of the group’s $300 billion stock portfolio. The value of that position has increased from $122 billion to $155 billion over the past six weeks as Apple’s stock price has risen 27 percent over the period.
Buffett has made no secret of his crush on Apple in recent years. The iPhone maker is a “family jewel” and “probably the best company” he knows, it said. Between 2016 and 2018, the star investor spent around $36 billion to build up its stake in the tech giant, meaning it’s quadrupled its fiat money in just a few short years.
“Drill Baby, Drill”
Berkshire has invested more than $25 billion in Chevron and Occidental Petroleum this year. His aggressive buying behavior shows that Buffett and his team are committed to fossil fuels. It also wants to benefit from the energy supply crisis caused by the Russian invasion of Ukraine.
Buffett’s company said it bought about 2.3 million shares of Chevron last quarter after increasing its position in the oil major from 38 million shares to 158 million shares in the first quarter. Chevron’s stock price is up 31 percent this year. Among other things, this increased the value of the expanded position to around $25 billion today.
Berkshire listed 159 million shares of Occidental in its portfolio at the end of June. However, the filing shows that Buffett’s company has increased its stake to 188 million shares, which translates to a 20 percent stake in the oil and gas producer.
Also of note is that Berkshire owns $10 billion in Occidental preferred stock and warrants, which would allow it to purchase 83.9 million common shares at a fixed price of $5 billion. They received both in exchange for funding Occidental’s 2019 acquisition of Anadarko Petroleum.
bets on banks
Berkshire has also improved its bank holdings over the past two years. The company exited positions in JPMorgan, Wells Fargo and Goldman Sachs, increased its controlling stake in Bank of America and added a roughly $3 billion position in Citigroup in the first quarter.
Buffett and his team continued to shift their financial bets this past quarter. He has more than tripled his stake in Ally Financial to 30 million shares, which is worth $1.1 billion at the bank’s current share price. On the other hand, he reduced his bet on US Bancorp by five percentage points to around 120 million shares, worth $5.9 billion today.
Buffett has never publicly commented on why Berkshire switched some banks to others. However, it’s clear that he continues to view financials as an important segment of Berkshire’s stock portfolio.
The following pie chart shows the top stocks in the Berkshire portfolio at the end of June and how much they were worth at the time:
Market Insider/SEC Filing
Warren Buffett bought these stocks last quarter — and the stock market giant exited him
This article was translated from English by Lara Hansen. You can find the original here.