Berkshire Hathaway Inc (BRK.B)

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Berkshire Hathaway Sells Entire Stake in Procter & Gamble
By: Investing | November 25, 2023

Berkshire Hathaway (NYSE:BRKa), the conglomerate managed by Warren Buffett, has offloaded its entire investment in consumer goods giant Procter & Gamble (NYSE:PG) (P&G), despite the company's strong financial track record. In the third quarter, Berkshire liquidated approximately $7 billion in equities, including its full stake in P&G, a company known for its 67-year history of consistent dividend payments and robust cash flow.

The decision to sell comes even as P&G maintains a solid reputation in the market, characterized by a wide economic moat—a term used to describe a company's ability to maintain competitive advantages over its rivals to protect its long-term profits and market share. This move by Berkshire Hathaway might raise eyebrows among investors, given P&G's status as a Dividend King, a title awarded to companies with at least 50 consecutive years of dividend increases.

Despite Berkshire Hathaway's divestment, market signals indicate that Procter & Gamble continues to be considered a viable purchase option for investors looking for stable returns and resilience in their portfolios. The sale of such a significant holding is likely to attract attention from the investment community, as stakeholders assess the implications of Berkshire's latest strategic adjustments.

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