Tuesday, November 17, 2020 10:26:29 AM
Full SA article - >>> Tracking Warren Buffett's Berkshire Hathaway Portfolio - Q3 2020 Update
Seeking Alpha
Nov. 17, 2020
by John Vincent
Long Only, Value, Special Situations, Fund Holdings
https://seekingalpha.com/article/4389578-tracking-warren-buffetts-berkshire-hathaway-portfolio-q3-2020-update
About: Berkshire Hathaway Inc. (BRK.A), BRK.B, Includes: AAPL, ABBV, AMZN, AXP, AXTA, BAC, BIIB, BK, BMY, BYDDF, BYDDY, CHTR, COST, DVA, GL, GM, GOLD, JNJ, JPM, KHC, KO, KR, LBTYA, LBTYB, LBTYK, LILA, LILAB, LILAK, LSXMA, LSXMB, LSXMK, MA, MCO, MDLZ, MRK, MTB, PFE, PG, PNC, RH, SIRI, SNOW, SPY, SRG, STNE, STOR, SU, SYF, TEVA, TMUS, UPS, USB, V, VOO, VRSN, WFC
Summary
Berkshire Hathaway's 13F stock portfolio value increased from ~$202B to ~$229B this quarter.
Their largest three holdings are at two-thirds of the entire portfolio.
Berkshire Hathaway reduced financials while adding several positions in the Big Pharma area.
This article is part of a series that provides an ongoing analysis of the changes made to Berkshire Hathaway’s 13F stock portfolio on a quarterly basis. It is based on Warren Buffett’s regulatory 13F Form filed on 11/16/2020. Please visit our Tracking 10 Years Of Berkshire Hathaway's Investment Portfolio article series for an idea on how his holdings have progressed over the years and our previous update for the moves in Q2 2020.
During Q1 2020, Berkshire Hathaway’s (BRK.A, BRK.B) 13F stock portfolio value increased ~13%, from ~$202B to ~$229B. The top five positions account for more than three-quarters of the portfolio: Apple Inc. (AAPL), Bank of America (BAC), Coca-Cola (KO), American Express (AXP), and Kraft Heinz (KHC). There are 46 individual stock positions, many of which are minutely small compared to the overall size of the portfolio.
Warren Buffett’s writings (pdfs) are a treasure trove of information and are a very good source for anyone starting out on individual investing.
Note 1: In Q3 2020, Berkshire Hathaway repurchased ~45M Class B Equivalent Shares, for a total outlay of $9.26B. The average price paid was ~$206. Book Value as of Q3 2020 was ~$174 per share. So, the repurchase happened at ~118% of Book Value. The Class B shares currently trade at ~$233.
Note 2: It was reported in August that Berkshire had invested 5% passive stake each in 5 Japanese trading companies.
New Stakes
AbbVie Inc. (ABBV), Merck & Company (MRK), Bristol-Myers Squibb (BMY), and Pfizer Inc. (PFE): Berkshire added these four picks from the Big Pharma sector this quarter. ABBV, MRK, and BMY received an allocation of ~$1.8B each, while the PFE stake is much smaller at ~$135M. ABBV traded between ~$86 and ~$101 during the quarter, and it currently goes for $98.36. MRK traded between ~$77 and ~$87 during the quarter, and it currently goes for $80.18. BMY traded between ~$57.50 and ~$63.75 during the quarter, and it currently goes for ~$64.50. PFE traded between ~$33.50 and ~$39.25 during the quarter, and it currently goes for $37.33.
Snowflake Inc. (SNOW) and T-Mobile US (TMUS): SNOW had an IPO in September. Shares started trading at ~$229 and currently goes for ~$242. Berkshire acquired the shares at the IPO price of ~$120 per share. TMUS is a very small 0.12% of the portfolio stake purchased at prices between ~$104 and ~$119, and it currently trades at ~$129.
Stake Disposals
Costco Wholesale (COST): COST was a long-term position that was in the portfolio for almost two decades. This quarter saw the 0.65% of the portfolio stake disposed at prices between ~$303 and ~$359. The stock currently trades at ~$380. Berkshire had a ~10x return on the position over the holding period.
Stake Increases
Bank of America: Berkshire established this large (top-three) ~11% of the portfolio position through the exercise of Bank of America warrants. The warrants had a strike price of $7.14 compared to the current price of $27.58. The cost to exercise was $5B, and it was funded using the $5B in 6% preferred stock they held. There was a ~30% stake increase in Q3 2018 at prices between $27.75 and $31.80 and a marginal increase next quarter. Q2 2019 also saw a ~4% stake increase. There was a ~9% stake increase this quarter at prices between ~$23 and ~$27.
Note: Berkshire’s overall cost basis is ~$14 and ownership stake is ~12%.
General Motors (GM): GM is a ~1% of the 13F portfolio position that was first purchased in Q1 2012 at prices between $21 and $30. By Q3 2017, the position size had increased by around six times (10M shares to 60M shares). Q4 2017 saw a reduction: a ~17% selling at prices between $40.50 and $46.50. There was a ~38% stake increase in Q4 2018 at prices between $30.50 and $38.50. This quarter also saw a ~7% stake increase. The stock currently trades at $42.13. Overall, Berkshire’s cost basis on GM is ~$32. Berkshire controls ~5.5% of the business.
Kroger Company (KR): KR is a 0.37% of the portfolio position established in Q4 2019 at prices between $24 and $29. The last two quarters have seen a ~30% stake increase at prices between ~$30 and ~$36.60. The stock currently trades at $32.30.
Liberty LiLAC Group (LILA, LILAK): The minutely small 0.01% of the portfolio stake in LILAK saw a minor increase during the quarter.
Stake Decreases
Apple Inc.: AAPL is currently the largest 13F portfolio stake by far at ~48%. It was built between Q1 2016 and Q1 2018 at a cost basis of ~$35 per share. Since then, the activity has been minor. The stock currently trades at ~$120. This quarter saw a ~4% trimming.
Note: Apple stock split 4-for-1 in August. The prices quoted above are adjusted. Berkshire has a ~5.8% ownership stake in the business.
DaVita Inc. (DVA): DVA is a 1.35% of the portfolio position that was aggressively built over several quarters in the 2012-13 time frame at prices between $30 and $49. The stock currently trades at ~$113, compared to Berkshire’s overall cost basis of ~$45 per share. This quarter saw a ~5% (2M shares) selling at $88 per share.
Note: Berkshire’s ownership stake in DaVita is ~32%.
Wells Fargo & Co. (WFC): WFC is now a 1.31% of the 13F portfolio position. It is a very long-term stake. In recent activity, 2019 saw a ~25% selling at prices between $43 and $55. The last two quarters have seen another ~60% reduction at prices between ~$23 and ~$33. Berkshire’s cost basis is ~$24.50. The stock currently trades at $24.90.
Liberty Global PLC (LBTYA, LBTYK): The position was established in Q4 2013 at prices between $37.50 and $44.50 (adjusted for the 03/2014 stock split) and increased in the following two quarters at prices between $38.50 and $46. The three quarters through Q1 2016 had also seen a combined ~30% increase at prices between $30 and $50. Q2 2016 saw a ~17% further increase at prices between $27 and $39. The stock is now at $21.85, and the stake is at 0.23% of the 13F portfolio. This quarter saw a ~5% trimming at $22.31.
Axalta Coating Systems (AXTA): AXTA is a small 0.23% of the portfolio stake established in Q2 2015 at prices between $28 and $36, and increased by ~16% the following quarter at prices between $24.50 and $33.50. The stock currently trades at $28.30. Berkshire owns ~10% of the business. This quarter saw a ~3% trimming at $22.63.
Barrick Gold (GOLD): The very small 0.15% of the portfolio GOLD stake was purchased last quarter at prices between $18.50 and $28.25, and the stock currently trades at $25.86. There was a ~43% selling this quarter at prices between ~$26 and ~$30.50.
JPMorgan Chase (JPM): A ~1% stake in JPM was established in Q3 2018 at prices between $104 and $119, and increased by ~40% next quarter at prices between $92 and $115. There was another ~20% stake increase in Q1 2019 at prices between $97 and $107. The stock currently trades at ~$117. Last quarter saw a ~60% selling at prices between $84 and $114. The remaining position was almost eliminated this quarter at prices between ~$91 and ~$104.
PNC Financial (PNC): The 0.09% PNC stake was established in Q3 2018 at prices between $134 and $146, and increased by just over one-third next quarter at prices between $110 and $140. There was an ~80% selling over the last two quarters at prices between $85 and $131. The stock is now at ~$126.
M&T Bank (MTB): The very small 0.12% of the portfolio MTB stake was reduced this quarter.
Kept Steady
American Express and Coca-Cola: These two very large stakes were kept steady during the last ~6 years. Buffett has said these positions will be held “permanently”. Berkshire’s cost basis on AXP and KO are at around $8.49 and $3.25 respectively, and the ownership stakes are at ~18% and ~9.5% respectively.
Kraft Heinz Co.: KHC is currently a fairly large position at 4.26% of the portfolio. Kraft Heinz started trading in July 2015, with Berkshire owning just over 325M shares (~27% of the business). The stake came about because of two transactions with 3G Capital as partner: a ~$4B net investment in 2013 for half of Heinz and a ~$5B investment for the acquisition of Kraft Foods Group in early 2015. Berkshire’s cost basis on KHC is ~$30 per share, compared to the current price of $32.15.
Moody’s Inc. (MCO): MCO is a 3.12% of the 13F portfolio stake. It is a very long-term position, and Buffett’s cost basis is $10.05. The stock currently trades at ~$276. Berkshire controls ~13% of the business.
US Bancorp (USB): The ~2% USB stake has been in the portfolio since 2006. The original position was tripled during the 2007-2009 time frame. It was then kept relatively steady till Q2 2013, when ~17M shares were purchased at prices between $32 and $36. H1 2018 saw a ~16% increase at prices between $49 and $58, and that was followed with a ~25% increase in Q3 2018 at prices between $50 and $55. The stock is now at $44.28, and Berkshire’s cost basis is ~$38. They control ~10% of the business. There was marginal selling last quarter.
Charter Communications (CHTR): CHTR is a 1.42% of the portfolio position. It was established during the last three quarters of 2014 at prices between $118 and $170. In Q2 2015, the position was increased by ~42% at prices between $168 and $193, and that was followed with another ~21% increase the following quarter at prices between $167 and $195. The stock currently trades at ~$641, compared to Berkshire’s cost basis of ~$178. The six quarters through Q4 2018 had seen a combined ~25% selling at prices between $250 and $395, and that was followed with a ~20% reduction in Q1 2019 at prices between $285 and $366. Since then, the activity has been minor.
VeriSign Inc. (VRSN): VRSN was first purchased in Q4 2012 at prices between $34 and $49.50. The position was more than doubled in Q1 2013 at prices between $38 and $48. The buying continued till Q2 2014 at prices up to $63. The stock currently trades at ~$195, and the position is at 1.15% of the portfolio (~10% of the business). Q1 2020 saw minor trimming.
Bank of New York Mellon Corp. (BK): BK is a 1.09% of the 13F portfolio stake. The bulk of the original position was purchased in Q2 2012 at prices between $19.50 and $25. In recent activity, 2017 saw a ~180% increase at prices between $43.50 and $55, while 2018 saw another one-third increase at prices between $44.50 and $58.50. The stock currently trades at $39.71. There was a ~10% trimming last quarter. Berkshire’s cost basis on BK is ~$46 per share and ownership stake is ~9%.
Amazon.com (AMZN): AMZN is a 0.73% of the portfolio stake established in Q1 2019 at prices between $1500 and $1820, and increased by ~11% next quarter at prices between $1693 and $1963. The stock currently trades at ~$3131. There was marginal trimming in Q1 2020.
Liberty SiriusXM Group (LSXMA, LSXMK): The tracking stock was acquired as a result of Liberty Media’s recapitalization in April 2016. Shareholders received 1 share of Liberty SiriusXM Group, 0.25 shares of Liberty Media Group, and 0.1 shares of Liberty Braves Group for each share held. Berkshire held 30M shares of Liberty Media for which he received the same amount of Liberty SiriusXM Group shares. There was a ~40% stake increase in Q2 2017 at a cost basis of ~$40 per share. Last quarter saw another ~27% stake increase primarily through the $25.47 per share rights offering the company announced in May. The stock currently trades at $42.80.
Note: LSXMA/LSXMK is trading at a significant NAV discount to the parent’s (Sirius XM Holdings (SIRI)) valuation.
Sirius XM Holdings: The 0.12% SIRI stake was purchased in Q4 2016 at prices between $4.08 and $4.61. Q2 2017 saw selling: a ~20% reduction at prices between $4.70 and $5.50. Last quarter saw a ~60% selling at prices between $4.50 and $6.50. The stock is currently at $6.37.
StoneCo Ltd. (STNE): STNE is a 0.33% position purchased in Q4 2018 at ~$21 per share, compared to the current price of $65.52.
Note: Berkshire has an ~11% ownership stake in StoneCo. In October 2018, WSJ reported that Berkshire had invested ~$300M each in two fintechs: India’s Paytm and Brazil’s StoneCo. The Paytm investment was made in August 2018, while the STNE purchase was following its IPO in October 2018.
STORE Capital (STOR): The 0.29% STOR stake was established in Q2 2017 in a private placement transaction at $20.25 per share. Last quarter saw a ~30% stake increase at prices between $14.50 and $26.50. The stock is now at $32.60.
RH Inc. (RH): The 0.29% of the portfolio RH position was established in Q3 2019 at prices between $119 and $174, and increased by ~40% next quarter at prices between $165 and $242. It is now at ~$408. Berkshire controls ~9% of the business.
Teva Pharmaceutical (TEVA): TEVA is a very small 0.17% of the portfolio stake established in Q4 2017 at prices between $11.20 and $19.33, and more than doubled next quarter at prices between $16.50 and $22. The stock currently trades at $9.63.
Suncor Energy (SU): The 0.10% SU stake was purchased in Q4 2018 at prices between $26 and $40. Q4 2019 saw a ~40% stake increase at prices between $29 and $33. There was another ~30% stake increase last quarter at prices between $14.25 and $21.30. The stock is now at ~$15.
Note: Suncor Energy has had a round-trip in the portfolio. It was a 0.48% position purchased in Q2 2013 at prices between $27 and $32. That stake was disposed during Q2 and Q3 2016 at prices between $25.50 and $29.
Synchrony Financial (SYF): SYF is a 0.23% of the portfolio position purchased in Q2 2017 at prices between $26.50 and $34.50, and increased by ~20% the following quarter at prices between $28.50 and $31.25. The stock is now at $31.11. Q1 2020 saw a ~3% trimming.
Note: Synchrony is the private-label credit card business split-off from GE that started trading in August 2014 at ~$23 per share.
Biogen Inc. (BIIB), Globe Life (GL), Johnson & Johnson (JNJ), Mastercard Inc. (MA), Mondelez International (MDLZ), Procter & Gamble (PG), SPDR S&P 500 Index (SPY), United Parcel Service (UPS), Vanguard S&P 500 Index (VOO), and Visa Inc. (V): These very small positions (less than ~1% of the portfolio each) were kept steady this quarter. Berkshire’s ownership stake in Global Life is ~6%.
Note 1: Since November 2015, Warren Buffett is known to own ~8% of Seritage Growth Properties (SRG) at a cost basis of $36.50 in his personal portfolio. It currently trades at ~$16. SRG is a REIT spin-off from Sears that started trading in July 2015.
Note 2: Berkshire Hathaway also has a 225M share position in BYD Company at a cost basis of ~$1 per share (~$2 per share in terms of ADRs). The ADR (OTCPK:BYDDY) currently trades at $46.79.
The spreadsheet below highlights changes to Berkshire Hathaway’s 13F stock holdings in Q3 2020:
Warren Buffett - Berkshire Hathaway
Disclosure: I am/we are long ABBV, AMZN, KHC, WFC, BRK.B. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
<<<
Seeking Alpha
Nov. 17, 2020
by John Vincent
Long Only, Value, Special Situations, Fund Holdings
https://seekingalpha.com/article/4389578-tracking-warren-buffetts-berkshire-hathaway-portfolio-q3-2020-update
About: Berkshire Hathaway Inc. (BRK.A), BRK.B, Includes: AAPL, ABBV, AMZN, AXP, AXTA, BAC, BIIB, BK, BMY, BYDDF, BYDDY, CHTR, COST, DVA, GL, GM, GOLD, JNJ, JPM, KHC, KO, KR, LBTYA, LBTYB, LBTYK, LILA, LILAB, LILAK, LSXMA, LSXMB, LSXMK, MA, MCO, MDLZ, MRK, MTB, PFE, PG, PNC, RH, SIRI, SNOW, SPY, SRG, STNE, STOR, SU, SYF, TEVA, TMUS, UPS, USB, V, VOO, VRSN, WFC
Summary
Berkshire Hathaway's 13F stock portfolio value increased from ~$202B to ~$229B this quarter.
Their largest three holdings are at two-thirds of the entire portfolio.
Berkshire Hathaway reduced financials while adding several positions in the Big Pharma area.
This article is part of a series that provides an ongoing analysis of the changes made to Berkshire Hathaway’s 13F stock portfolio on a quarterly basis. It is based on Warren Buffett’s regulatory 13F Form filed on 11/16/2020. Please visit our Tracking 10 Years Of Berkshire Hathaway's Investment Portfolio article series for an idea on how his holdings have progressed over the years and our previous update for the moves in Q2 2020.
During Q1 2020, Berkshire Hathaway’s (BRK.A, BRK.B) 13F stock portfolio value increased ~13%, from ~$202B to ~$229B. The top five positions account for more than three-quarters of the portfolio: Apple Inc. (AAPL), Bank of America (BAC), Coca-Cola (KO), American Express (AXP), and Kraft Heinz (KHC). There are 46 individual stock positions, many of which are minutely small compared to the overall size of the portfolio.
Warren Buffett’s writings (pdfs) are a treasure trove of information and are a very good source for anyone starting out on individual investing.
Note 1: In Q3 2020, Berkshire Hathaway repurchased ~45M Class B Equivalent Shares, for a total outlay of $9.26B. The average price paid was ~$206. Book Value as of Q3 2020 was ~$174 per share. So, the repurchase happened at ~118% of Book Value. The Class B shares currently trade at ~$233.
Note 2: It was reported in August that Berkshire had invested 5% passive stake each in 5 Japanese trading companies.
New Stakes
AbbVie Inc. (ABBV), Merck & Company (MRK), Bristol-Myers Squibb (BMY), and Pfizer Inc. (PFE): Berkshire added these four picks from the Big Pharma sector this quarter. ABBV, MRK, and BMY received an allocation of ~$1.8B each, while the PFE stake is much smaller at ~$135M. ABBV traded between ~$86 and ~$101 during the quarter, and it currently goes for $98.36. MRK traded between ~$77 and ~$87 during the quarter, and it currently goes for $80.18. BMY traded between ~$57.50 and ~$63.75 during the quarter, and it currently goes for ~$64.50. PFE traded between ~$33.50 and ~$39.25 during the quarter, and it currently goes for $37.33.
Snowflake Inc. (SNOW) and T-Mobile US (TMUS): SNOW had an IPO in September. Shares started trading at ~$229 and currently goes for ~$242. Berkshire acquired the shares at the IPO price of ~$120 per share. TMUS is a very small 0.12% of the portfolio stake purchased at prices between ~$104 and ~$119, and it currently trades at ~$129.
Stake Disposals
Costco Wholesale (COST): COST was a long-term position that was in the portfolio for almost two decades. This quarter saw the 0.65% of the portfolio stake disposed at prices between ~$303 and ~$359. The stock currently trades at ~$380. Berkshire had a ~10x return on the position over the holding period.
Stake Increases
Bank of America: Berkshire established this large (top-three) ~11% of the portfolio position through the exercise of Bank of America warrants. The warrants had a strike price of $7.14 compared to the current price of $27.58. The cost to exercise was $5B, and it was funded using the $5B in 6% preferred stock they held. There was a ~30% stake increase in Q3 2018 at prices between $27.75 and $31.80 and a marginal increase next quarter. Q2 2019 also saw a ~4% stake increase. There was a ~9% stake increase this quarter at prices between ~$23 and ~$27.
Note: Berkshire’s overall cost basis is ~$14 and ownership stake is ~12%.
General Motors (GM): GM is a ~1% of the 13F portfolio position that was first purchased in Q1 2012 at prices between $21 and $30. By Q3 2017, the position size had increased by around six times (10M shares to 60M shares). Q4 2017 saw a reduction: a ~17% selling at prices between $40.50 and $46.50. There was a ~38% stake increase in Q4 2018 at prices between $30.50 and $38.50. This quarter also saw a ~7% stake increase. The stock currently trades at $42.13. Overall, Berkshire’s cost basis on GM is ~$32. Berkshire controls ~5.5% of the business.
Kroger Company (KR): KR is a 0.37% of the portfolio position established in Q4 2019 at prices between $24 and $29. The last two quarters have seen a ~30% stake increase at prices between ~$30 and ~$36.60. The stock currently trades at $32.30.
Liberty LiLAC Group (LILA, LILAK): The minutely small 0.01% of the portfolio stake in LILAK saw a minor increase during the quarter.
Stake Decreases
Apple Inc.: AAPL is currently the largest 13F portfolio stake by far at ~48%. It was built between Q1 2016 and Q1 2018 at a cost basis of ~$35 per share. Since then, the activity has been minor. The stock currently trades at ~$120. This quarter saw a ~4% trimming.
Note: Apple stock split 4-for-1 in August. The prices quoted above are adjusted. Berkshire has a ~5.8% ownership stake in the business.
DaVita Inc. (DVA): DVA is a 1.35% of the portfolio position that was aggressively built over several quarters in the 2012-13 time frame at prices between $30 and $49. The stock currently trades at ~$113, compared to Berkshire’s overall cost basis of ~$45 per share. This quarter saw a ~5% (2M shares) selling at $88 per share.
Note: Berkshire’s ownership stake in DaVita is ~32%.
Wells Fargo & Co. (WFC): WFC is now a 1.31% of the 13F portfolio position. It is a very long-term stake. In recent activity, 2019 saw a ~25% selling at prices between $43 and $55. The last two quarters have seen another ~60% reduction at prices between ~$23 and ~$33. Berkshire’s cost basis is ~$24.50. The stock currently trades at $24.90.
Liberty Global PLC (LBTYA, LBTYK): The position was established in Q4 2013 at prices between $37.50 and $44.50 (adjusted for the 03/2014 stock split) and increased in the following two quarters at prices between $38.50 and $46. The three quarters through Q1 2016 had also seen a combined ~30% increase at prices between $30 and $50. Q2 2016 saw a ~17% further increase at prices between $27 and $39. The stock is now at $21.85, and the stake is at 0.23% of the 13F portfolio. This quarter saw a ~5% trimming at $22.31.
Axalta Coating Systems (AXTA): AXTA is a small 0.23% of the portfolio stake established in Q2 2015 at prices between $28 and $36, and increased by ~16% the following quarter at prices between $24.50 and $33.50. The stock currently trades at $28.30. Berkshire owns ~10% of the business. This quarter saw a ~3% trimming at $22.63.
Barrick Gold (GOLD): The very small 0.15% of the portfolio GOLD stake was purchased last quarter at prices between $18.50 and $28.25, and the stock currently trades at $25.86. There was a ~43% selling this quarter at prices between ~$26 and ~$30.50.
JPMorgan Chase (JPM): A ~1% stake in JPM was established in Q3 2018 at prices between $104 and $119, and increased by ~40% next quarter at prices between $92 and $115. There was another ~20% stake increase in Q1 2019 at prices between $97 and $107. The stock currently trades at ~$117. Last quarter saw a ~60% selling at prices between $84 and $114. The remaining position was almost eliminated this quarter at prices between ~$91 and ~$104.
PNC Financial (PNC): The 0.09% PNC stake was established in Q3 2018 at prices between $134 and $146, and increased by just over one-third next quarter at prices between $110 and $140. There was an ~80% selling over the last two quarters at prices between $85 and $131. The stock is now at ~$126.
M&T Bank (MTB): The very small 0.12% of the portfolio MTB stake was reduced this quarter.
Kept Steady
American Express and Coca-Cola: These two very large stakes were kept steady during the last ~6 years. Buffett has said these positions will be held “permanently”. Berkshire’s cost basis on AXP and KO are at around $8.49 and $3.25 respectively, and the ownership stakes are at ~18% and ~9.5% respectively.
Kraft Heinz Co.: KHC is currently a fairly large position at 4.26% of the portfolio. Kraft Heinz started trading in July 2015, with Berkshire owning just over 325M shares (~27% of the business). The stake came about because of two transactions with 3G Capital as partner: a ~$4B net investment in 2013 for half of Heinz and a ~$5B investment for the acquisition of Kraft Foods Group in early 2015. Berkshire’s cost basis on KHC is ~$30 per share, compared to the current price of $32.15.
Moody’s Inc. (MCO): MCO is a 3.12% of the 13F portfolio stake. It is a very long-term position, and Buffett’s cost basis is $10.05. The stock currently trades at ~$276. Berkshire controls ~13% of the business.
US Bancorp (USB): The ~2% USB stake has been in the portfolio since 2006. The original position was tripled during the 2007-2009 time frame. It was then kept relatively steady till Q2 2013, when ~17M shares were purchased at prices between $32 and $36. H1 2018 saw a ~16% increase at prices between $49 and $58, and that was followed with a ~25% increase in Q3 2018 at prices between $50 and $55. The stock is now at $44.28, and Berkshire’s cost basis is ~$38. They control ~10% of the business. There was marginal selling last quarter.
Charter Communications (CHTR): CHTR is a 1.42% of the portfolio position. It was established during the last three quarters of 2014 at prices between $118 and $170. In Q2 2015, the position was increased by ~42% at prices between $168 and $193, and that was followed with another ~21% increase the following quarter at prices between $167 and $195. The stock currently trades at ~$641, compared to Berkshire’s cost basis of ~$178. The six quarters through Q4 2018 had seen a combined ~25% selling at prices between $250 and $395, and that was followed with a ~20% reduction in Q1 2019 at prices between $285 and $366. Since then, the activity has been minor.
VeriSign Inc. (VRSN): VRSN was first purchased in Q4 2012 at prices between $34 and $49.50. The position was more than doubled in Q1 2013 at prices between $38 and $48. The buying continued till Q2 2014 at prices up to $63. The stock currently trades at ~$195, and the position is at 1.15% of the portfolio (~10% of the business). Q1 2020 saw minor trimming.
Bank of New York Mellon Corp. (BK): BK is a 1.09% of the 13F portfolio stake. The bulk of the original position was purchased in Q2 2012 at prices between $19.50 and $25. In recent activity, 2017 saw a ~180% increase at prices between $43.50 and $55, while 2018 saw another one-third increase at prices between $44.50 and $58.50. The stock currently trades at $39.71. There was a ~10% trimming last quarter. Berkshire’s cost basis on BK is ~$46 per share and ownership stake is ~9%.
Amazon.com (AMZN): AMZN is a 0.73% of the portfolio stake established in Q1 2019 at prices between $1500 and $1820, and increased by ~11% next quarter at prices between $1693 and $1963. The stock currently trades at ~$3131. There was marginal trimming in Q1 2020.
Liberty SiriusXM Group (LSXMA, LSXMK): The tracking stock was acquired as a result of Liberty Media’s recapitalization in April 2016. Shareholders received 1 share of Liberty SiriusXM Group, 0.25 shares of Liberty Media Group, and 0.1 shares of Liberty Braves Group for each share held. Berkshire held 30M shares of Liberty Media for which he received the same amount of Liberty SiriusXM Group shares. There was a ~40% stake increase in Q2 2017 at a cost basis of ~$40 per share. Last quarter saw another ~27% stake increase primarily through the $25.47 per share rights offering the company announced in May. The stock currently trades at $42.80.
Note: LSXMA/LSXMK is trading at a significant NAV discount to the parent’s (Sirius XM Holdings (SIRI)) valuation.
Sirius XM Holdings: The 0.12% SIRI stake was purchased in Q4 2016 at prices between $4.08 and $4.61. Q2 2017 saw selling: a ~20% reduction at prices between $4.70 and $5.50. Last quarter saw a ~60% selling at prices between $4.50 and $6.50. The stock is currently at $6.37.
StoneCo Ltd. (STNE): STNE is a 0.33% position purchased in Q4 2018 at ~$21 per share, compared to the current price of $65.52.
Note: Berkshire has an ~11% ownership stake in StoneCo. In October 2018, WSJ reported that Berkshire had invested ~$300M each in two fintechs: India’s Paytm and Brazil’s StoneCo. The Paytm investment was made in August 2018, while the STNE purchase was following its IPO in October 2018.
STORE Capital (STOR): The 0.29% STOR stake was established in Q2 2017 in a private placement transaction at $20.25 per share. Last quarter saw a ~30% stake increase at prices between $14.50 and $26.50. The stock is now at $32.60.
RH Inc. (RH): The 0.29% of the portfolio RH position was established in Q3 2019 at prices between $119 and $174, and increased by ~40% next quarter at prices between $165 and $242. It is now at ~$408. Berkshire controls ~9% of the business.
Teva Pharmaceutical (TEVA): TEVA is a very small 0.17% of the portfolio stake established in Q4 2017 at prices between $11.20 and $19.33, and more than doubled next quarter at prices between $16.50 and $22. The stock currently trades at $9.63.
Suncor Energy (SU): The 0.10% SU stake was purchased in Q4 2018 at prices between $26 and $40. Q4 2019 saw a ~40% stake increase at prices between $29 and $33. There was another ~30% stake increase last quarter at prices between $14.25 and $21.30. The stock is now at ~$15.
Note: Suncor Energy has had a round-trip in the portfolio. It was a 0.48% position purchased in Q2 2013 at prices between $27 and $32. That stake was disposed during Q2 and Q3 2016 at prices between $25.50 and $29.
Synchrony Financial (SYF): SYF is a 0.23% of the portfolio position purchased in Q2 2017 at prices between $26.50 and $34.50, and increased by ~20% the following quarter at prices between $28.50 and $31.25. The stock is now at $31.11. Q1 2020 saw a ~3% trimming.
Note: Synchrony is the private-label credit card business split-off from GE that started trading in August 2014 at ~$23 per share.
Biogen Inc. (BIIB), Globe Life (GL), Johnson & Johnson (JNJ), Mastercard Inc. (MA), Mondelez International (MDLZ), Procter & Gamble (PG), SPDR S&P 500 Index (SPY), United Parcel Service (UPS), Vanguard S&P 500 Index (VOO), and Visa Inc. (V): These very small positions (less than ~1% of the portfolio each) were kept steady this quarter. Berkshire’s ownership stake in Global Life is ~6%.
Note 1: Since November 2015, Warren Buffett is known to own ~8% of Seritage Growth Properties (SRG) at a cost basis of $36.50 in his personal portfolio. It currently trades at ~$16. SRG is a REIT spin-off from Sears that started trading in July 2015.
Note 2: Berkshire Hathaway also has a 225M share position in BYD Company at a cost basis of ~$1 per share (~$2 per share in terms of ADRs). The ADR (OTCPK:BYDDY) currently trades at $46.79.
The spreadsheet below highlights changes to Berkshire Hathaway’s 13F stock holdings in Q3 2020:
Warren Buffett - Berkshire Hathaway
Disclosure: I am/we are long ABBV, AMZN, KHC, WFC, BRK.B. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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