Warren Buffett, renowned as the world’s most famous investor, continues to make strategic moves within Berkshire Hathaway’s portfolio, and the latest 13F regulatory filing with the Securities and Exchange Commission unveils key changes during the third quarter of 2023.
Berkshire Hathaway’s Portfolio Additions:
1. Liberty Live Group (LLYVK)(LLYVA)
- Berkshire initiated a new position in Liberty Live Group, holding an interest in Live Nation entertainment and other minority investments.
- The combined position in Series A and Series C common stock was valued at $518.6 million.
2. Atlanta Braves Holdings (BATRK)
- Berkshire acquired a new stake in Atlanta Braves Holdings, recently spun off from Liberty Media, with ownership of the titular baseball team and related real estate.
- The position amounted to nearly 224,000 shares, valued at about $8 million.
3. Sirius XM Holdings (SIRI)
- Buffett and team added a new stake of 9.68 million shares in Sirius XM Holdings, the satellite radio provider.
- The position was worth approximately $43.8 million by the end of the third quarter.
Berkshire Hathaway’s Portfolio Trims:
1. General Motors (GM)
- Berkshire completely eliminated its stake in General Motors during the third quarter after a 45% reduction in the previous quarter.
2. HP (HPQ)
- The stake in computer and peripheral maker HP was reduced by 15.2% in the third quarter, now totaling about 102.5 million shares worth over $2.6 billion.
3. Aon (AON)
- Berkshire trimmed its stake in professional-services firm Aon by 5.4%, maintaining ownership valued at more than $1.3 billion.
4. Amazon (AMZN)
- The position in web retailer Amazon was reduced by 5.2% to an even 10 million shares, valued at nearly $1.3 billion at quarter-end.
5. Markel (MKL)
- Berkshire significantly cut its stake in insurer Markel by more than 66%, with the reduced position valued at nearly $234 million.
6. Globe Life (GL)
- The position in insurance company Globe Life was slashed by about 67%, with the reduced stake worth around $90.4 million.
7. Chevron (CVX)
- Berkshire reduced its Chevron holdings by approximately 10.5%, maintaining about 110.2 million shares at the end of September.
8. Celanese Corp. (CE)
- After shrinking its position in the first and second quarters, Berkshire sold out of its stake in Celanese during the third quarter.
9. Activision Blizzard (ATVI)
- Berkshire completely eliminated its stake in video game maker Activision Blizzard, acquired by Microsoft in October for $95 per share in cash.
10. Johnson & Johnson (JNJ), Mondelez International (MDLZ), Procter & Gamble (PG), United Parcel Service (UPS)
- Berkshire closed out relatively small positions in these household names during the quarter.
Top Stock Holdings in Buffett’s Portfolio:
Berkshire maintains a concentrated approach, with the majority of its portfolio held in a few companies. As of September 30, 2023, the top five holdings accounted for about 78% of the portfolio’s value:
- Apple (AAPL) – $156.8 billion
- Bank of America (BAC) – $28.3 billion
- American Express (AXP) – $22.6 billion
- Coca-Cola – $22.4 billion
- Chevron (CVX) – $18.6 billion
Buffett’s repurchase of Berkshire stock, totaling about $7.0 billion in the first nine months of 2023, indicates his belief in the shares’ undervaluation.
Bottom Line:
While Buffett and Berkshire boast an excellent investment track record, thorough research is crucial before making investment decisions. Even legendary investors’ stocks can decline, emphasizing the importance of understanding businesses for informed decision-making.
