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Berkshire Hathaway, led by Warren Buffett, has made significant changes to its stock portfolio, according to a regulatory filing on Tuesday. The conglomerate has unloaded its holdings in General Motors (GM), Johnson & Johnson (J&J), and Procter & Gamble (P&G), while also reducing its stake in Amazon.com. These moves were part of Berkshire’s strategy to build up its cash reserves, which now stand at a record $157.2 billion. Here’s a breakdown of the key developments:
1. Sold Holdings and Cash Position:
- Berkshire reported no holdings in GM, J&J, and P&G, after disclosing respective stakes of $848 million, $54 million, and $48 million in June.
- The conglomerate sold $7 billion in stocks during the third quarter, including some of its substantial investment in Chevron.
- The net sales contributed to Berkshire’s record cash pile, now equivalent to its $156.8 billion stake in Apple.
2. Changes in Amazon Stake and New Position:
- Berkshire reduced its stake in Amazon by 5%.
- One notable new position is an $8 million stake in Atlanta Braves Holdings, which indirectly controls the Major League Baseball team and The Battery Atlanta, a mixed-use development.
3. Confidential Treatment Request:
- Berkshire decided not to disclose one or more of its holdings and sought confidential treatment from the U.S. Securities and Exchange Commission (SEC).
- The filing does not specify which investments belong to Warren Buffett or his portfolio managers Todd Combs and Ted Weschler.
4. Other Third-Quarter Sales:
- Berkshire completed its exit from video game maker Activision Blizzard, which was acquired by Microsoft last month.
- Holdings in life insurer Globe Life were also reduced.
- A significant move was shedding about two-thirds of its stake in Markel Group, a company some investors have considered a “mini-Berkshire.”
5. Buffett’s Investing Legacy:
- Warren Buffett, 93, has been at the helm of Berkshire since 1965, and his investment decisions are closely monitored by investors globally.
- Berkshire’s diverse portfolio includes major businesses such as Geico, BNSF railroad, and consumer brands like Dairy Queen and Duracell.
6. Confidential Treatment History:
- Berkshire has a history of seeking confidential treatment for major investments, as seen with IBM and Exxon Mobil stakes over a decade ago.
7. Market Trends and Apple Investment:
- Berkshire’s cautious approach in selling stocks reflects a down period for its stock holdings, particularly Apple, whose share price declined by 12% in the third quarter.
- The cash position underscores Berkshire’s strategic flexibility in navigating market uncertainties.
