The famous investor disclosed the latest movements made by Berkshire Hathaway, his company. Undoubtedly, the most important thing was the total sale of the position in the Bank of New York. Is the financial sector still reeling?
Every quarter, all fund managers with at least $100M in assets must publicly report their stock holdings to the US Securities and Exchange Commission.
Warren Buffett He communicated his movements during the last week, which really surprised. These were the main changes of him:
Apple (AAPL):
In the first quarter, Buffett increased his stake in Apple by 20.4 million shares, reaching a value of $157.5 billion. His first investment in Apple was in the first quarter of 2016. Currently, Berkshire’s stake in Apple is more than five times larger than any other public stock in his portfolio, representing 46.4% of the total. Clearly his favorite action.
Bank of America (BAC):
Buffett made his first investment in Bank of America in 2011 during the European debt crisis. Although he has reduced his exposure to various bank stocks in recent quarters, Bank of America has been an exception. In the first quarter, Buffett bought another 22.7m shares of BAC, bringing his total stake to a value of $28.6bn, representing 12.9% ownership of the company. Buffett’s investment in Bank of America is Berkshire’s second largest, after Apple.
Occidental Petroleum (OXY):
It is one of the leading oil and gas companies in the United States. Berkshire’s stake in Occidental has grown to more than 211.7 million shares, worth about $12.4 billion, making OXY stock one of Buffett’s top six investments.
Chevron (CVX):
Warren Buffett invested in Chevron in the fourth quarter of 2020. Due to the global energy crisis and the invasion of Ukraine. Oil prices rose in 2022. So Buffett increased his investment but then sold shares in the fourth quarter of 2022 and the first quarter of 2023. Berkshire Hathaway still owns 132.4 million Chevron shares, worth u $20.800M.
Bank of New York Mellon (BK):
Warren Buffett made his first investment in BK stock in the third quarter of 2010. This year, however, Buffett sold the last 25 million shares of his stake, having significantly reduced his position in the previous two quarters. BK has fallen more than 35% from its highs and suffered the banking crisis firsthand.
US Bancorp (USB):
Buffett made his first investment in US Bancorp in 2006, but aggressively reduced his stake in the third and fourth quarters of last year. This year Berkshire sold the remaining 6.6 million shares of USB, ending Buffett’s investment in the bank after 17 years.
Taiwan Semiconductor (TSM):
In the third quarter of 2022, Buffett stunned Wall Street by taking a massive $4.1Bn stake in TSM, making it one of Berkshire Hathaway’s top 10 investments. However, just a quarter later, Buffett changed direction and sold more than 51.7 million shares of TSM in the fourth quarter, followed by the sale of the remaining 8.3 million shares in the first quarter of this year.
Most notable is his decision to get completely out of the Bank of New York shares, also accompanied by the flight of US Bancorp. Warren Buffett justified the sale of these bank shares by saying that he was “less in love with the industry”.
“When it comes to owning banks, events will determine your future and there are politicians involved, there are a lot of people who don’t really understand how the system works.”Warren commented. However, it is worth clarifying that he slightly increased his position at Bank of America.
Berkshire Hathaway wasn’t the only high-profile investment manager to sell bank shares last quarter. Bridgewater Associates, the world’s largest hedge fund, has sold approximately $180M worth of bank shares. This included more than 80% of his holdings in Bank of New York Mellon and US Bancorp. Bridgewater also liquidated its positions at 15 other US banks, including Bank of America, Western Alliance, Zions, PacWest and New York Community Bank.
Investors flee from banks looking for better returns, since they do not offer an interest rate close to that of the market. Therefore, deposits continue to fall:
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Obviously the banking crisis is not over and the big market participants know it. The interest rate rose again and puts the financial system in check, especially the regional banks, which are the most affected by the outflow of deposits.
The situation is still very tense and it is to pay close attention. For now, the big investors are already fleeing bank actions.
Are you interested in learning more about these topics? I want to invite you to read a report that I prepared with the 22 best finance and investment sites. It is information that in many cases is difficult to find. You can download it at this link: Financial Letter – actions.
Note: The material contained in this note should in no way be construed as investment advice or a recommendation to buy or sell any particular asset. This content is for educational purposes only and represents the author’s opinion only. In all cases it is advisable to consult a professional before investing.
2023-05-22 03:00:00
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