Warren Buffett is arguably the world’s most famous investor and his investment moves are closely watched. Every quarter, the company he runs, Berkshire Hathaway, discloses his current holdings to shareholders.
Here are some of the changes Buffett and his two investment officers made in the third quarter, according to the latest Regulatory File 13F with the Securities and Exchange Commission. All asset data is as of September 30, 2021.
Berkshire Hathaway Portfolio Securities: Where Buffett & Co. Buy / Add
Berkshire increased its position in oil company Chevron by more than 24% in the third quarter. The stake, which was first purchased in the third quarter of 2020 and halved earlier this year, was worth around $ 2.9 billion at the end of the quarter.
Royalty Pharma (RPRX)
A new position of $ 475 million was established during the quarter in Royalty Pharma, an $ 18 billion company focused on purchasing pharmaceutical royalties. The New York-based company has a dividend yield of around 1.6% and annual sales of over $ 2 billion.
Floor & Decor Holdings (FND)
Berkshire also took 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 is aimed at professional installers, commercial companies and DIY buyers.
Berkshire Hathaway Portfolio Securities: Where Buffett & Co. Sell
Marsh & McLennan (MMC)
Berkshire reduced its stake in insurance broker Marsh & McLennan for the second quarter in a row, reducing it by about a third in the most recent quarter. The position was first established in the third quarter of 2020, but has been almost halved since the end of March 2021. Marsh & McLennan’s share price has risen almost 50% so far this year.
AbbVie (ABBV), Bristol-Myers Squibb (BMY), Merck (MRK) and Organon (OGN)
Berkshire also cut its stake in drugmakers AbbVie and Bristol-Myers Squibb. He also completely eliminated positions in Merck and Organon, which were ceded to Merck earlier this year. AbbVie’s position was reduced by almost 30% and was worth around $ 1.6 billion at the end of the quarter, while Bristol-Myers was reduced 16% to $ 1.3 billion.
Communication charter (CHTR)
A stake in broadband and cable company Charter Communications was reduced by nearly 20 percent in the third quarter. It was still worth over $ 3 billion at the end of the quarter and has performed well for Berkshire since the position was first bought in the second quarter of 2014. The stock traded at around $ 140 per share in May 2014 and traded over $ 800 in the third quarter. from 2021.
Main 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 major holdings did not 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 to buy back Berkshire shares so far in 2021, including $ 7.6 billion in the third quarter. This indicates that the company believes the shares are undervalued and continued shareholders will benefit from buybacks.
At the end of the line
Buffett and Berkshire have an excellent track record in selecting investments, but be sure to research all investments before investing on your own. Even stocks held by legendary investors are shrinking, and you will need to understand enough about the companies you invest in 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 performance of investment products is not a guarantee of future price appreciation.