Analyzing Berkshire Hathaway’s Recent Portfolio Additions



Recent additions

Warren Buffett, Berkshire Hathaway’s (BRK-B) chairman, is known for his buy and hold philosophy. As a result, the portfolio churn is low. General Electric (GE), Walmart (WMT), and IBM (IBM) are among the stocks that Berkshire Hathaway has exited completely in the last two years. In the third quarter, Berkshire Hathaway added some new companies to its portfolio. In this part, we’ll see how these companies performed in the quarter.

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Price action

JPMorgan Chase (JPM) lost 13.5% in the fourth quarter, PNC Financial Services (PNC) lost 14.1%, and Travelers Company (TVC) lost 7.6%. In Berkshire Hathaway’s third-quarter 13F, it added a new position in Oracle (ORCL). The stock also lost 12.4% in the fourth quarter. Looking at broader markets, the S&P 500 (SPY) lost 13.9%. So, Berkshire Hathaway’s recent additions have largely performed in line with broader markets.

Tech companies

Oracle is the latest tech company that Buffett added in the fourth quarter. Previously, Buffett added and completely exited IBM. Although Berkshire Hathaway has Apple (AAPL) shares in its portfolio, Buffett sees the company as a consumer products company instead of a technology company. Buffett has never been known for his prowess in picking technology companies.

Buffett bought Apple stock in 2016 and kept adding more shares as recently as the third quarter. In Berkshire Hathaway’s upcoming 13F, all eyes would be on whether the company added more Apple shares in the fourth quarter.


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