Berkshire Hathaway: Stock Sales Once Again Outpaced Purchases
Berkshire reduced holdings in companies like Marsh & McLennan and picked up three different residential construction firms.
Berkshire Hathaway BRK.A reported a relatively busy second quarter for its equity investment portfolio, with net sales (exclusive of purchases) coming in at an estimated $5.1 billion based on the insurer’s recent 13-F filing.
The biggest reductions from the portfolio on an absolute basis came from its holdings in Activision Blizzard ATVI (with Berkshire selling 34.8 million shares, or 70% of total holdings at the end of March 2023, for an estimated $3.0 billion) and Globe Life GL (it sold 3.8 million shares, or 60% of total holdings at the end of the first quarter, for an estimated $425 million). Berkshire also completely eliminated its stakes in McKesson MCK (2.3 million shares for an estimated $900 million), Marsh & McLennan Companies MMC (0.4 million shares for an estimated $75 million), and Vitesse Energy VTS (51,026 shares for an estimated $1 million).
Other sales included Berkshire trimming its stake in Chevron CVX (9.3 million shares for an estimated $1.5 billion), General Motors GM (18.0 million shares for an estimated $675 million), and Celanese CE (3.5 million shares for an estimated $390 million). Missing from the filings is Berkshire’s sale of shares in Chinese electric vehicle maker BYD; since August 2022, the insurer has sold off more than half of the 20.5% stake it has held since 2008.
Around $740 million of the proceeds generated during the second quarter were directed to new money purchases, with Berkshire picking up three different residential construction firms: Lennar LEN (152,572 shares for an estimated $15 million), NVR NVR (11,112 shares for an estimated $65 million), and D.R. Horton DHI (6.0 million shares for an estimated $660 million). Berkshire also acquired an additional 12.4 million shares of Occidental Petroleum OXY for an estimated $750 million, as well as 2.5 million more shares of Capital One Financial COF for an estimated $265 million.
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