Warren 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 third quarter, according to the latest 13F regulatory filing with the Securities and Exchange Commission. The holdings are reported as of Sept. 30, 2022. At that time, the S&P 500 had declined about 25% for the year.
Berkshire Hathaway’s portfolio holdings: Where Buffett & Co. are buying/adding
Taiwan Semiconductor (TSM)
Berkshire established a new $4.1 billion position in Taiwan Semiconductor during the quarter. The Taiwan-based company makes advanced computer chips for a global customer base including Apple, in which Berkshire holds a $126.5 billion stake. Berkshire held about 60 million shares of Taiwan Semiconductor at the end of September.
Louisiana-Pacific Corp. (LPX)
A new stake of nearly $300 million was announced in Louisiana-Pacific, 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 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 91.2 million shares at the end of September, up from 78.4 million shares in June.
Occidental Petroleum (OXY)
Berkshire continued to boost its stake in energy company Occidental Petroleum during the third quarter. Berkshire held 136.4 million shares at the end of March, about 158.5 million shares at the end of June, and reported holding 194.4 million shares worth about $11.9 billion at the end of the third quarter. Berkshire also owns warrants that could increase its position even more.
Chevron (CVX)
Berkshire added slightly to its Chevron holdings during the quarter, adding nearly 4 million shares to its already-large holding, increasing its stake to 165.4 million shares at the end of September. The company is one of Berkshire’s five largest holdings and comes with a dividend yield above 3%. Chevron has benefited from higher energy prices and reported $11.2 billion in earnings during the third quarter of 2022, up from $6.1 billion in the same quarter last year.
Celanese Corp. (CE)
Berkshire also added to its position in Celanese, a materials provider to the chemicals, paints, and coatings industries. Berkshire held about 9.2 million shares at the end of the second quarter, and boosted that to more than 9.7 million shares in the latest quarter.
RH (RH)
Berkshire increased its stake in furniture retailer RH, which operates the Restoration Hardware stores, by about 9% during the third quarter. The position was worth about $580.1 million at the end of September.
Jefferies Financial Group (JEF)
Berkshire also established a new position in Jefferies Financial Group, which is involved in capital markets, investment banking and asset management. The position was worth almost $13 million at the end of September.
Berkshire Hathaway’s portfolio holdings: Where Buffett & Co. are selling
U.S. Bancorp (USB)
Berkshire cut its position in U.S. Bancorp by more than one-third, reducing its stake from 119.8 million shares at the end of the second quarter to 77.8 million at the end of September. 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 60.1 million shares, down from 68.4 million at the end of the second 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 $74 per share, and the companies expect the deal to close by mid-2023. EU antitrust regulators recently announced an investigation into the deal.
Bank of New York Mellon (BK)
Berkshire trimmed its position in Bank of New York Mellon by about 14% during the third quarter, cutting its stake by more than 10 million shares. The investment was worth about $2.4 billion as of the end of September.
General Motors (GM)
General Motors also saw its shares slashed by Berkshire, reducing holdings by about 5% quarter over quarter. The stake fell from about 52.9 million shares in the second quarter to 50 million at the end of September.
Kroger (KR)
Berkshire further reduced its holdings in the large grocer Kroger, paring its stake by a little over 4%. Berkshire trimmed more than 2.1 million shares from its position during the third 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.
STORE Capital (STOR)
Berkshire eliminated its position in STORE Capital during the third quarter. The position was first purchased during the second quarter of 2017 and was worth more than $430 million at the end of March. The real estate investment trust, or REIT, currently has a dividend yield above 5% and a market cap of nearly $9 billion.
Top stock 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 top holdings at the end of the third quarter accounted for 73% of the portfolio’s value, and included these top five positions:
Apple (AAPL) – $126.5 billion
Bank of America (BAC) – $32.1 billion
Chevron (CVX) – $24.4 billion
Coca-Cola – $22.4 billion
American Express (AXP) – $20.5 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.
Bottom line
Buffett 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.
