The investment firm of Warren Buffett, Berkshire Hathaway, has sold more shares than it bought in the final quarter of 2022, according to a regulatory filing. While the filings only reflect investors’ equity holdings at the end of the previous quarter and not necessarily what their portfolios look like today, the move provides insight into the approach that Buffett and his team have taken to the markets.
In the final three months of 2022, Berkshire Hathaway added to its positions in Apple, Louisiana-Pacific Corp., and Paramount Global while reducing its positions in eight companies, including U.S. Bancorp and Taiwan Semiconductor Manufacturing Co. The firm has not opened new positions in any companies in the final three months of the year.
Apple continues to be Berkshire Hathaway’s largest stock holding, with Bank of America and Chevron following closely behind. Despite reducing its position in several companies, Chevron remains one of Berkshire Hathaway’s five biggest holdings.
The company reduced its position in chip maker Taiwan Semiconductor Manufacturing by 51.8 million shares, or roughly 86%, a notable move considering Berkshire Hathaway only began investing in the company during the third quarter. The firm also decreased its stakes in financial stocks U.S. Bancorp, Bank of New York Mellon Corp., and Ally Financial.
Analysts had been questioning if Berkshire Hathaway would further cut its stake in financial stocks since it reduced its stake in the Minneapolis-based U.S. Bancorp, which it had been invested in since 2006, by more than half last year.
Berkshire Hathaway also trimmed its position in videogame maker Activision-Blizzard Inc., healthcare company McKesson Corp., and grocery-chain Kroger Co.
The moves were revealed in Berkshire Hathaway’s 13F filing, a form that institutional investors who manage more than $100 million are required to file to the U.S. Securities and Exchange Commission within 45 days of the end of each quarter.
Buffett is one of the most prominent and successful investors in the world, with a net worth of more than $100 billion. His investment strategy is often followed closely by other investors who look to replicate his success.
Investors will get more information about Berkshire Hathaway’s activity and its subsidiaries’ performance in the fourth quarter later in the month when the company releases its earnings results. Berkshire Hathaway spent $66 billion buying stocks in the first nine months of 2022, more than 13 times its spending over the same period in 2021, according to company filings. Investors interpreted the pickup in activity as Berkshire Hathaway taking advantage of the tumult across markets in 2022, following a relatively quiet period in 2021, in which the company largely stuck to repurchasing its own shares.
As of the end of 2022, Apple Inc. has become the largest stock holding of Warren Buffett’s Berkshire Hathaway. According to the company’s regulatory filing, Berkshire Hathaway added to its position in the tech giant during the final quarter of 2022. This move was in line with Buffett’s previous statements about his bullishness on Apple, which he has repeatedly referred to as a “consumer products company.”
Bank of America Corp. is the second largest holding in Berkshire Hathaway’s portfolio. The financial institution has been one of Berkshire Hathaway’s top holdings for several years now, and it has been a consistent performer for the company. Berkshire Hathaway increased its holdings in the bank in 2021, and as of the end of 2022, Bank of America remains a top holding.
Chevron Corp. is the third largest holding in Berkshire Hathaway’s portfolio. Despite trimming its position in the energy company during the final quarter of 2022, Chevron remains one of Berkshire Hathaway’s five largest holdings.