Berkshire's Fourth-Quarter Portfolio Changes
The biggest changes came from transactions entered into during the 2008-09 financial crisis.
The biggest changes came from transactions entered into during the 2008-09 financial crisis.
Wide-moat Berkshire Hathaway's (BRK.B) fourth-quarter 13-F filing, which details the firm's equity holdings at the end of the December quarter, held few surprises, with the biggest changes coming from transactions entered into during the 2008-09 financial crisis.
In the fourth quarter, Berkshire not only exercised the warrants it received from General Electric (GE) and Goldman Sachs (GS) as part of capital infusions made during the crisis, receiving 10.7 million shares of GE and 13.1 million shares of Goldman in the process, the insurer also more than doubled its stake in USG after that firm redeemed convertible debt issued to Berkshire in early 2009.
As for the actual purchases made during the quarter, Warren Buffett and his two lieutenants--Ted Weschler and Todd Comb--put additional capital to work in DaVita (DVA), ExxonMobil (XOM), Wal-Mart (WMT), Wells Fargo (WFC), and US Bancorp (USB), and made a new-money purchase in Liberty Global PLC. This was likely a replacement for DISH Network , which was completely removed from portfolio (after running up close to 60% in value last year). Berkshire also eliminated its stake in GlaxoSmithKline (GSK), finishing off the job it had started in the third quarter of 2013 (when the firm reduced its stake in the health-care company by 75%). Other notable sales during the fourth quarter included Suncor Energy (SU), Starz , ConocoPhillips (COP), Liberty Media (LMCA), and Moody's (MCO).
It should also be noted that Berkshire continues to think outside of the box when it comes to eliminating legacy holdings. At the end of December, the insurer announced that it was swapping around 19 million shares of Phillips 66 (PSX) it already owns for Phillips Specialty Products (likely avoiding capital gains taxes in the process). The firm is also looking at a similarly structured deal with Graham Holdings (formerly Washington Post), swapping its 1.7 million shares (with a cost basis of less than $11 million) for one or more of the businesses left in Graham's portfolio (equivalent to Berkshire's current $1.1 billion stake).
Morningstar Premium Members gain exclusive access to our full Berkshire Hathaway Analyst Report, including fair value estimate, consider buying/selling prices, bull and bear breakdowns, and risk analysis. Not a Premium member? Get this and other reports immediately when you try Morningstar Premium free for 14 days.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals
and individual investors. These products and services are usually sold through
license agreements or subscriptions. Our investment management business generates
asset-based fees, which are calculated as a percentage of assets under management.
We also sell both admissions and sponsorship packages for our investment conferences
and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.