Skip to Content
Morningstar

Sale of Energy Stocks the Biggest Highlight in Berkshire's 4Q Equity Portfolio

Warren Buffett’s Berkshire Hathaway had a shift in strategy in the fourth quarter as it unloaded most of its energy holdings to buy more of Deere and IBM.

Wide-moat

Likely spurred on by the collapse in oil prices, the insurer eliminated its stakes in

The insurer used most of the proceeds to add to its stakes in Deere and IBM. The firm's holdings in Deere, which had been excluded from its third-quarter 13-F filing (as Berkshire was likely adding significantly to its stake and received permission to withhold its actions), accounted for close to 2% of Berkshire's holdings at the end of last year, making it a $2 billion plus holding. The company also added more than $1 billion to its stake in IBM.

The rest of the cash that was raised was used to fund fairly meaningful additions to its holdings in

Morningstar Premium Members gain exclusive access to our full Berkshire Analyst Report, including fair value estimates, consider buying/selling prices, bull and bear breakdowns, and risk analyses. Not a Premium Member? Get this and other reports immediately when you try Morningstar Premium free for 14 days.

More in Stocks

About the Author

Greggory Warren

Strategist
More from Author

Greggory Warren, CFA, is a strategist for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He covers the traditional U.S.-and Canadian-based asset managers, as well as Berkshire Hathaway.

Before assuming his current role in 2017, Warren covered the financial-services sector as a senior analyst since late 2008. Prior to that time, he covered non-alcoholic beverage manufacturers and distributors, packaged food firms, food service distributors, and tobacco companies. Before joining Morningstar in 2005, Warren worked as a buy-side equity analyst for more than seven years, covering consumer staples and consumer cyclicals.

Warren holds a bachelor's degree in accounting and English from Augustana College. He also holds the Chartered Financial Analyst® designation and is a member of the CFA Society of Chicago. During 2014-19, Warren was selected to participate on the analyst panel at Berkshire Hathaway’s annual meeting, asking questions directly of Warren Buffett and Charlie Munger. The analyst panel was disbanded ahead of Berkshire’s 2020 annual meeting. Warren also ranked second in the investment services industry in The Wall Street Journal’s annual “Best on the Street” analysts survey in 2013, the last year the survey was conducted.

Sponsor Center