Berkshire Hathaway Inc (BRK.B)

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Berkshire Hathaway’s Second Quarter 2022 Portfolio Moves
By: Markets & Mayhem | August 16, 2022

Berkshire Hathaway’s (BRK/A, BRK/B) first-quarter 13F was filed on August 15. This filing gives us a quarterly opportunity to observe what two of the greatest investors, Warren Buffett and Charlie Munger, and their team are doing within Berkshire’s publicly traded equity portfolio. Berkshire has a large stable of wholly-owned entities, so this is just a slice of their investments. Berkshire’s second-quarter earnings report, summarized here, provided more information about the operating companies.

Berkshire’s $300 billion very concentrated investment portfolio consists of 47 companies, two stocks less than last quarter. Despite investing more money into its stock portfolio, the value fell from $364 billion at the end of the first quarter due to the over 16% decline in the S&P 500. The top 5 holdings account for over 74% of the total portfolio. The top five holdings, in order of the size of holding, are Apple (AAPL), Bank of America (BAC), Coca-Cola (KO), Chevron (CVX), and American Express (AXP). Apple was almost 41% of the portfolio at the end of the second quarter! Due to these significant holdings plus Kraft Heinz (KHC), the portfolio is significantly overweight technology, consumer staples, and financials relative to the S&P 500. This portfolio includes no industrials or utilities, but Berkshire’s wholly-owned entities include a large railroad, Burlington Northern Santa Fe, and multiple regulated utilities and pipelines.



Because the 13F does not include international stocks, Berkshire Hathaway announced the acquisition of about 5% of five Japanese trading companies at the end of August 2020. These holdings are not part of this analysis: Itochu Corp., Marubeni Corp., Mitsubishi Corp., Mitsui & Co. Ltd., and Sumitomo Corp. Buffett indicated that these were intended to be long-term holdings, and Berkshire may increase its stake to 9.9%.

This analysis looks at the Berkshire portfolio across a host of measures, including 12-month forward estimated: price-to-earnings (P/E), price-to-sales (P/S), return-on-equity (ROE), enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EV/EBITDA), price-to-book (P/B), dividend yield, debt-to-EBITDA, and long-term earnings-per-share growth consensus estimates...

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