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Berkshire Hathaway: Stock Sales Once Again Outpaced Purchases

Berkshire reduced holdings in companies like Marsh & McLennan and picked up three different residential construction firms.

Berkshire's corporate headquarters in Omaha, Nebraska
Securities In This Article
Berkshire Hathaway Inc Class A
(BRK.A)

Berkshire Hathaway BRK.A reported a relatively busy second quarter for its equity investment portfolio, with net sales (exclusive of purchases) coming in at an estimated $5.1 billion based on the insurer’s recent 13-F filing.

The biggest reductions from the portfolio on an absolute basis came from its holdings in Activision Blizzard ATVI (with Berkshire selling 34.8 million shares, or 70% of total holdings at the end of March 2023, for an estimated $3.0 billion) and Globe Life GL (it sold 3.8 million shares, or 60% of total holdings at the end of the first quarter, for an estimated $425 million). Berkshire also completely eliminated its stakes in McKesson MCK (2.3 million shares for an estimated $900 million), Marsh & McLennan Companies MMC (0.4 million shares for an estimated $75 million), and Vitesse Energy VTS (51,026 shares for an estimated $1 million).

Other sales included Berkshire trimming its stake in Chevron CVX (9.3 million shares for an estimated $1.5 billion), General Motors GM (18.0 million shares for an estimated $675 million), and Celanese CE (3.5 million shares for an estimated $390 million). Missing from the filings is Berkshire’s sale of shares in Chinese electric vehicle maker BYD; since August 2022, the insurer has sold off more than half of the 20.5% stake it has held since 2008.

Around $740 million of the proceeds generated during the second quarter were directed to new money purchases, with Berkshire picking up three different residential construction firms: Lennar LEN (152,572 shares for an estimated $15 million), NVR NVR (11,112 shares for an estimated $65 million), and D.R. Horton DHI (6.0 million shares for an estimated $660 million). Berkshire also acquired an additional 12.4 million shares of Occidental Petroleum OXY for an estimated $750 million, as well as 2.5 million more shares of Capital One Financial COF for an estimated $265 million.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

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About the Author

Greggory Warren

Strategist
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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.

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