U.S. stock markets have whipsawed this year. While stocks fell sharply in February and March, they have rebounded and hit new record highs. Warren Buffett, Berkshire Hathaway's chairman, missed the crash in the first quarter. However, the Oracle of Omaha made some buying in the third quarter. How does Warren Buffett’s portfolio look in 2020 amid record-high markets?
Berkshire Hathaway has released its third-quarter 13F which shows what stocks it bought and sold in the third quarter. There have been some surprise inclusions in Warren Buffett’s portfolio.
What is Warren Buffett buying?
Berkshire Hathaway took stakes in drugmaker stocks in the third quarter amid the COVID-19 pandemic. The company brought 22.4 million shares in Merck, 29.97 million shares in Bristol-Myers Squibb, 21.3 million shares in AbbVie, and 3.7 million shares in Pfizer. Berkshire Hathaway also bought 2.4 million shares in T-Mobile in the third quarter.
Here's the changes to Warren Buffett's Berkshire Hathaway $BRK.B $BRK.A holdings as of 9/30— Stock Market News (@StockMKTNewz) November 16, 2020
Bristol Myers $BMY
Wells Fargo $WFC
M&T Bank $MTB
Warren Buffett’s recent trades
Berkshire Hathaway sold almost 3 percent of the Apple shares that it was holding in the third quarter. The company also trimmed its stakes in J.P. Morgan Chase. However, there were two surprise trades in the third quarter. Berkshire Hathaway sold 42 percent of its stake in Barrick Gold within a quarter of buying the stock. The company also sold its entire stake in Costco, which it has held since 2001.
While Berkshire Hathaway trimmed its stakes in Wells Fargo, M&T Bank, and PNC Financial, it increased its stake in Bank of America by 9 percent during the third quarter. The company also bought a stake in Snowflake during its IPO.
Along with Warren Buffett, Ted Weschler and Todd Combs are two of the other investment managers at Berkshire Hathaway. The trades could be executed by any of them.
Does Warren Buffett own Tesla stock?
Warren Buffett doesn't own Tesla stock. He might not invest in the electric vehicle company in the near future due to its soaring valuations. However, Buffett has invested in Chinese electric vehicle company BYD Motors in the past.
Does Warren Buffett own Apple stock?
Apple is the largest holding in Berkshire Hathaway’s portfolio of publicly traded companies. While Buffett hasn’t added any Apple shares since the third quarter of 2018, the value has more than doubled since then due to the spike in Apple stock. Berkshire Hathaway is Apple’s second-largest shareholder.
Warren Buffett bought stake in Japanese trading companies
In April, Berkshire Hathaway revealed that it picked over a 5 percent passive stake in five leading Japanese trading companies. The stake was valued at over $6 billion. The news surprised investors because Buffett prefers to invest in U.S. companies.
Warren Buffett and pharma stocks
Berkshire Hathaway has taken stakes in pharma stocks in the third quarter. While the stake isn't much currently, Buffett is known to scale up his investments after he gets comfortable with companies. For example, after taking a small stake in Apple in 2016, Buffett continued to add more shares over the next two years.