Berkshire Hathaway, the renowned multinational conglomerate led by Warren Buffett, made several notable changes to its stock holdings in the fourth quarter of the year, as stated in its quarterly 13-F report released recently.
Apple: Reduction in Holdings
Despite its long-standing position as one of Berkshire Hathaway's largest stock holdings, the company sold 10 million shares of Apple during the fourth quarter. However, it still holds an impressive 905 million shares of the tech giant, which amounts to approximately $166 billion. This substantial stake represents nearly half of Berkshire Hathaway's entire equity portfolio. Worth noting is that Apple's stock experienced a slight decline of 0.7% during premarket trading on Thursday.
Chevron: Increased Investment
On the other hand, Berkshire Hathaway decided to increase its investment in Chevron, the leading domestic energy company. The conglomerate purchased an additional 16 million shares, bringing its total stake to 126 million shares, worth about $19 billion. This move follows the sale of approximately 13 million Chevron shares in the previous quarter. Interestingly, Chevron's stock witnessed a modest gain of 0.8% during premarket trading.
Paramount Global: Reduction in Holdings
During the fourth quarter, Berkshire Hathaway significantly reduced its investment in Paramount Global, a prominent media company. As a result, the conglomerate now holds 63 million shares of Paramount Global. However, it is worth mentioning that Paramount stock experienced a decline of 4.3% during premarket trading.
HP: Sharp Drop in Holdings
Berkshire Hathaway continued to sell its stake in HP, a well-known manufacturer of PCs and printers. The conglomerate drastically reduced its holding by 80 million shares during the fourth quarter, resulting in a remaining stake of approximately 23 million shares. Notably, HP's stock remained unchanged during premarket trading.
DR Horton: Complete Elimination
Lastly, Berkshire Hathaway decided to eliminate its holding of approximately 6 million shares in DR Horton, the leading home builder in the country. This move aligns with Berkshire Hathaway's decision to exit its position in DR Horton entirely. During premarket trading, DR Horton's shares experienced a decline of 1.4%.
These strategic stock movements by Berkshire Hathaway highlight the company's continued efforts to optimize and diversify its investment portfolio in various sectors.
Berkshire Hathaway's Equity Portfolio
Berkshire Hathaway, under the leadership of Warren Buffett, manages approximately 90% of its equity portfolio valued at around $350 billion. The remaining portion is overseen by managers Ted Weschler and Todd Combs. However, the specific details about which manager is responsible for equity buys and sells are not disclosed.
Although Buffett supervises the significant investment in Apple, he has indicated in the past that a small portion of it is handled by either Combs or Weschler. Consequently, it is difficult to ascertain with certainty whether the Apple sales reported in the latest quarter were executed by Buffett himself or by either Combs or Weschler.
On the other hand, Berkshire's investment in Paramount has not been as successful. Analysts estimate that the cost per share exceeds $30. Nonetheless, Berkshire became a buyer of Paramount in the first quarter of 2022 and remains one of the largest shareholders in the company.
Among Buffett's numerous triumphs over the years at Berkshire Hathaway, the Apple investment stands out as one of the most significant. Having acquired Apple at an average cost of about $34 per share, Berkshire currently enjoys a paper profit of approximately $135 billion, considering Apple's closing price of $184 on Wednesday.
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