During the second quarter, Warren Buffett’s Berkshire Hathaway made significant moves in its investment portfolio, acquiring stakes in Ulta Beauty and Heico while reducing its holding in Apple. The regulatory filing revealed that Berkshire held approximately 690,000 Ulta Beauty shares valued at $266.3 million and 1.04 million Heico shares worth $185.4 million as of June 30.
Following the news, Ulta Beauty shares surged by 14% and Heico shares saw a 3% increase in after-hours trading, indicating investor confidence in the companies receiving Buffett’s endorsement. While it was not specified whether Buffett himself made the purchases, Berkshire’s portfolio managers Todd Combs and Ted Weschler typically oversee such investments.
Ulta Beauty and Heico have not yet commented on Berkshire’s acquisitions. Heico Co-President Eric Mendelson expressed gratitude for Berkshire’s investment, highlighting the alignment in their decentralized business models. Heico's stock has risen by 32% this year, reflecting positive market sentiment.
Berkshire Hathaway, known for its diverse holdings including Geico, BNSF railroad, and Apple, also has interests in consumer and retail businesses such as Benjamin Moore, Dairy Queen, and Kroger. Ulta Beauty, with 1,395 stores across the US, adds to Berkshire’s retail portfolio.
Furthermore, Berkshire’s history in the aerospace sector includes the acquisition of Precision Castparts for $32.1 billion in 2016, its largest purchase to date. Despite challenges faced by Precision Castparts during the pandemic and Boeing 737 MAX jets grounding, Berkshire remains optimistic about the aerospace industry.
Buffett’s investment decisions continue to shape Berkshire Hathaway’s diverse portfolio, showcasing his strategic approach to long-term value creation in various sectors.
