On May 15, Berkshire Hathaway (BRK-B) released its first-quarter 13F. Chairman Warren Buffett has a flair for banking and financial companies. Berkshire Hathaway holds a stake in several banking stocks. In the first quarter, Berkshire Hathaway added more JPMorgan Chase (JPM) shares, while it trimmed its stake in Wells Fargo (WFC).
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Berkshire Hathaway brought stake in JPMorgan in the third quarter of 2018. The company has continued to add to its position. Berkshire Hathaway increased its stake in JPMorgan Chase by more than 18% in the first quarter. The company’s portfolio is overweight in the banking and financial space. The sector accounts for almost half of Berkshire Hathaway’s $200-billion portfolio of publicly traded securities. Berkshire Hathaway also holds a stake in U.S. Bancorp (USB), Bank of America (BAC), and Bank of New York Mellon (BK). Berkshire Hathaway has a stake in PNC Financial (PNC) and added more shares in the first quarter. Berkshire Hathaway also added PNC shares in the fourth quarter.
Berkshire Hathaway continued to sell Wells Fargo (WFC) shares in the first quarter. Berkshire Hathaway has been gradually selling Wells Fargo shares in a bid to keep its stake in the bank below 10%. Wells Fargo’s CEO, Tim Sloan, was endorsed by Buffett. However, Sloan resigned in March.
Berkshire Hathaway’s portfolio is overweight in the banking sector. The financial sector underperformed the S&P 500 (SPY) in the first quarter. The financial sector has outperformed the S&P 500 in the second quarter. Looking at the year-to-date performance, the Financial Select Sector SPDR Fund (XLF) has risen 13.0%, while the SPDR S&P 500 ETF has risen 14.6%.