Berkshire Hathaway’s holdings
Usually, Berkshire Hathaway (BRK-B) has a low portfolio churn. Warren Buffett is known to buy large stakes in companies. However, due to regulatory guidelines, Buffett generally limits his holdings in public limited companies within 10%.
Looking at Berkshire Hathaway’s third-quarter 13F, the company added more Apple (AAPL) shares and added a new position in JPMorgan Chase (JPM). Buffett added some Bank of America (BAC) shares and sold some Wells Fargo (WFC) shares. However, selling the Wells Fargo shares should be seen as Buffett’s intent to keep Berkshire Hathaway’s holdings below 10%. In the financials space only, Berkshire Hathaway added to its positions in Goldman Sachs (GS), U.S. Bancorp (USB), and Bank of New York Mellon (BK). Buffett also took small stakes in PNC Financial Services (PNC), Traveler Companies (TRV), and Oracle (ORCL).
Berkshire Hathaway lowered its stake in United Airlines (UAL), American Airlines (AAL), and Southwest Airlines (LUV). However, the company added some stakes in Delta Air Lines (DAL). Berkshire Hathaway also lowered its stake in Philips 66 (PSX) and completely exited Walmart (WMT) and Sanofi Holdings (SNY). In the last two years, Buffett has exited several companies including General Electric (GE) and IBM (IBM). Read Exiting Like Warren Buffett: Is It a Profitable Strategy? to look at some of Buffett’s prominent exits.
Along with these investments, Berkshire Hathaway also repurchased some shares in the third quarter. Historically, Buffett hasn’t been a big fan of companies buying back stocks. Instead, he prefers that the companies reinvest in the business.
Next, we’ll discuss how Buffett’s top ten holdings performed in the third quarter.