Analysis of Berkshire Hathaway’s 13F Filing: Warren Buffett’s Investment Moves Revealed
Berkshire Hathaway, the highly esteemed investment vehicle led by Warren Buffett and his team, recently filed its fourth-quarter 13F, giving investors and enthusiasts a glimpse into the decision-making process of the greatest investors of our time. In this quarterly filing, we explore the investment decisions made by Warren Buffett and Charlie Munger, with a particular focus on their publicly traded equity portfolio. While this filing only presents a partial picture of Berkshire’s holdings, it sheds light on their investment strategy and provides valuable insights. Read more
Berkshire Hathaway’s Concentrated Investment Portfolio
With a total value of $347 billion, Berkshire Hathaway’s investment portfolio comprises 41 companies. Notably, this portfolio experienced a decrease of four holdings compared to the previous quarter. The top five holdings, which account for more than 80% of the total portfolio, are Apple (AAPL), Bank of America (BAC), American Express (AXP), Coca-Cola (KO), and Chevron (CVX). While Berkshire trimmed its Apple holdings, it remains a prominent portion of their investment strategy, constituting approximately 50% of the portfolio. To gain further insights into their investment choices and the reasons behind the Occidental Petroleum purchase, click here for a detailed analysis.
Berkshire’s Diverse and Well-Positioned Portfolio
Berkshire Hathaway’s investment holdings demonstrate a significant overweighting in technology, energy, consumer staples, and financials when compared to the S&P 500. It should be noted that the 13F filing primarily covers domestic holdings, and Berkshire’s international investments, specifically in five Japanese trading companies, were not included. However, it is worth mentioning that Berkshire announced the acquisition of a 5% stake in these Japanese companies, namely Itochu Corp., Marubeni Corp., Mitsubishi Corp., Mitsui & Co. Ltd., and Sumitomo Corp. Learn more about Berkshire’s strategic move into the Japanese market.
Insights into Berkshire’s Portfolio Metrics
An in-depth analysis of Berkshire’s portfolio reveals several key metrics, including price-to-earnings (P/E), price-to-sales (P/S), return-on-equity (ROE), enterprise value-to-EBITDA (EV/EBITDA), price-to-book (P/B), dividend yield, current debt-to-EBITDA, current free cash flow yield, and current operating margin. Berkshire’s portfolio showcases a relatively cheaper valuation regarding price-to-earnings when compared to the broader market represented by the S&P 500. Additionally, Berkshire’s holdings demonstrate better profitability metrics, characterized by higher return on equity and operating margin, alongside lower debt levels. These metrics reflect Warren Buffett’s preference for high-quality companies that generate substantial cash flows.
Recent Changes in Berkshire’s Portfolio
While Berkshire did not disclose any significant positions or additions to its stock holdings, there were notable changes in the portfolio. Berkshire increased its stakes in Sirius XM (SIRI), Chevron (CVX), and Occidental Petroleum (OXY). Conversely, Berkshire reduced its holdings in Apple (AAPL), Paramount Global (PARA), and HP (HPQ). It is anticipated that Berkshire was once again a net seller of stocks, with an emphasis on the oil sector and energy stocks. Despite public regrets about past sales of Apple, Berkshire remains heavily invested in the tech giant, asserting its faith in its long-term potential and market dominance. Discover more insights into Berkshire’s recent investment moves.
Disclaimer: This article is a news piece and not financial or investment advice. Remember to conduct thorough research and seek professional assistance before making any investment decisions.
