Warren Buffett’s Stock Activity 5 Buys, 8 Sells

Warren Buffett's Stock Activity 5 Buys, 8 Sells

Warren Buffett’s Berkshire Hathaway

Warren Buffett’s Berkshire Hathaway Adds Homebuilders and Increases Stake in Occidental Petroleum and Capital One Financial

Warren Buffett’s Berkshire Hathaway (BRK.B) has made some interesting moves in the second quarter of 2023, initiating positions in three homebuilders, increasing its stake in Occidental Petroleum, and raising its investment in Capital One Financial. At the same time, Buffett’s company has reduced or exited positions in eight other stocks.

Berkshire’s Homebuilder Bets

In a surprising move, Berkshire made small investments in the homebuilding sector, opening positions in D.R. Horton (DHI), NVR (NVR), and Lennar (LEN.B). These investments reflect Buffett’s continuous interest in the U.S. housing market, which has been a core part of Berkshire’s portfolio for some time.

  • D.R. Horton: Berkshire acquired 6 million shares worth $726.5 million, making it the 28th largest position in the holding company’s portfolio.
  • NVR: Berkshire purchased 11,112 shares valued at $70.6 million, accounting for 0.02% of its portfolio.
  • Lennar: Berkshire invested in 152,572 shares worth $17.3 million, representing 0.01% of its portfolio.

These investments complement Berkshire’s existing equity positions and wholly-owned subsidiaries in the housing sector. Other related holdings include Louisiana-Pacific (LPX), Floor & Decor Holdings (FND), and various housing-related businesses like Acme Brick, Benjamin Moore, Clayton Homes, and more.

Occidental Petroleum Gets Bigger

Buffett increased Berkshire’s investment in Occidental Petroleum (OXY) by 5%, adding 12.4 million shares. With a total of 224.1 million shares worth $13.2 million, Occidental Petroleum is the sixth-largest holding in Berkshire’s portfolio, accounting for 3.8% of its total investments.

Buffett has a history of increasing his stake in Occidental Petroleum when the stock price falls below $60, and with the price below that level in May and June, he took the opportunity to add more shares. Although Berkshire owns more than 25% of Occidental Petroleum’s outstanding shares and has regulatory approval to purchase up to 50%, Buffett has stated that he has no intention of acquiring the oil and gas company outright.

Capital One Financial Grows

Buffett also increased Berkshire’s stake in Capital One Financial (COF) by 25%, acquiring 12.5 million shares worth $1.4 billion. This represents 0.4% of Berkshire’s portfolio and makes Capital One Financial the 21st largest holding. Despite reducing its exposure to most bank stocks in recent years, Berkshire continues to have a positive view on select financial sector names. Alongside Capital One Financial, Berkshire has significant holdings in payments processors like Visa (V) and Mastercard (MA).

Notable Sales: General Motors, Chevron, and Others

While Berkshire made some bullish moves, there were also notable sales in the portfolio. The company reduced its position in General Motors (GM) by 45%, selling 18 million shares. Berkshire’s current investment in the automaker stands at 22 million shares worth $848.3 million. General Motors has been a long-term holding for Berkshire since the first quarter of 2012, although it has not generated significant returns based on average prices paid.

Buffett also trimmed Berkshire’s stake in Chevron (CVX) by 7%, reducing its holdings to 123.1 million shares valued at $19.4 billion. Despite the reduction, Chevron remains the fifth-largest holding in Berkshire’s portfolio, with a weight of 5.6%.

In another notable sale, Berkshire slashed its position in video game publisher Activision Blizzard (ATVI) by 70% to 14.7 million shares worth $1.2 billion. This move was not a loss of confidence; instead, Buffett’s interest was an arbitrage play betting on the approval of ATVI’s acquisition by Microsoft (MSFT). While the deal has cleared most regulatory hurdles, approval from UK authorities is still pending.

Berkshire also reduced its holding in Celanese (CE) by 39% to 5.4 million shares worth $620.5 million. Additionally, Berkshire sold 60% of its stake in Globe Life (GL). These companies now rank as the 31st and 35th largest holdings in Berkshire’s equity portfolio, respectively, both representing a small percentage of the total portfolio.

Furthermore, Berkshire completely exited positions in McKesson (MCK), Marsh & McLennan (MMC), and Vitesse Energy (VTS). Berkshire obtained a stake in Vitesse Energy in the first quarter of 2023 through its ownership of Jefferies Financial (JEF), which spun off the energy firm to shareholders.

Summary

Warren Buffett’s Berkshire Hathaway made intriguing moves in the second quarter of 2023. Berkshire entered the homebuilding industry with positions in D.R. Horton, NVR, and Lennar, aligning with its existing housing-related investments. Buffett also increased Berkshire’s stake in Occidental Petroleum and Capital One Financial, showcasing his ongoing confidence in select sectors. On the selling side, Berkshire reduced its positions in General Motors, Chevron, Activision Blizzard, Celanese, and Globe Life. Berkshire Hathaway’s investment decisions continue to be closely watched by investors and market observers.

Berkshire Hathaway Portfolio

For a comprehensive view of Warren Buffett’s stocks and exchange-traded funds, it is advised to review the complete holdings of the Berkshire Hathaway portfolio.

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