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Tracking Warren Buffetts Berkshire Hathaway Portfolio – Q2 2022 Update (NYSE:BRK.A) | Seeking Alpha

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Paul Morigi

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 Form 13F filed on 8/15/2022. Visit our Berkshire Hathaway 10-Year Investment Portfolio Tracking article series to get a sense of how its holdings have progressed over the years and our previous update for moves in Q1 2022.

Reading: Warren buffett’s largest holdings

During the second quarter of 2022, the value of Berkshire Hathaway’s (NYSE:BRK.A) (NYSE:BRK.B) 13F Equity Portfolio decreased ~18%, from ~$364B to ~$300B of usd The top five positions represent ~74% of the portfolio: Apple Inc., Bank of America, Coca-Cola, Chevron, and American Express. there are 45 individual stock positions, many of which are minimally small compared to the total size of the portfolio.

the writings of warren buffett (pdf) are a treasure trove of information and are a very good source for anyone just starting out as an individual investor.

Note 1: In the second quarter of 2022, Berkshire Hathaway repurchased ~3.62 million Class B Matching Shares for a total outlay of ~$1.03 billion. the average price paid was ~$284. book value as of the second quarter of 2022 was ~$213 per share. thus, the repurchase occurred at ~133% of book value. In July 2018, Berkshire had announced a plan to make its buyback criteria more flexible, instead of the 120% of book value criteria, Buffett & Munger had to accept that Berkshire was trading below intrinsic value. class b shares are currently trading at ~$307.

note 2: berkshire hathaway also has a 225 million equity position in byd company at a base cost of ~8 hkd per share. currently listed in hong kong at ~285 hkd.

Note 3: The 2021 AR listed the following non-13F investments: 5.6% ownership interest in Itochu Corporation (otcpk:itocf) at a cost basis of $23.52, 5, 5% ownership interest in mitsubishi corporation (otcpk :msbhf) at a cost basis of $25.72 and a 5.7% ownership interest in mitsui & company (otcpk:mitsf) at a base cost of $17.29. itocf, msbhf and mitsf are currently trading at $27.93, $31.80 and $22.74 respectively. In August 2020 it was revealed that Berkshire had amassed a ~5% stake in five Japanese trading companies: Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo.

Note 4: As of November 2015, Warren Buffett is known to own ~8% of Seritage Growth Properties (SRG) at a base cost of $36.50 in his personal portfolio. currently trading at $13.68. srg is a reit spin-off from sears that began trading in July 2015.

new bets:

none.

action provisions:

verizon communications (vz) – the vz position was built in the second half of 2020 at prices between $54 and $62. the last quarter saw the position almost eliminated at prices between ~ $51 and ~$55. the remaining stake was sold this quarter. the stock is currently trading at $45.80.

royalty pharma plc (rprx): the rprx stake was purchased in Q3 2021 at prices between ~$36 and ~$42. there was about a third sale in the fourth quarter of 2021 at prices between ~$35 and ~$42.50. in the last quarter, the position was reduced by another ~85% at prices between ~$37.50 and ~$42.50. the remainder of the holding was eliminated during the quarter. the stock is now at $44.35.

bet raises:

apple inc. (aapl): aapl is currently the 13f largest portfolio holding at ~41%. was built between the first quarter of 2016 and the first quarter of 2018 at a base cost of ~$35 per share. since then, activity has been less. the shares are currently trading at ~$173.

note: apple stock split 4-for-1 last august. the prices indicated above are adjusted. Berkshire has a ~5.6% ownership stake in the business.

chevron corp (cvx) – cvx is a large 7.79% (top five) of the portfolio position bought in Q3 2020 at prices between ~$72 and ~$91 . Q1 2021 saw a ~50% share sale at prices between ~$85 and ~$112, while Q3 2021 saw a ~25% share increase at prices between ~$94 and ~$106 That was followed by another one-third increase the next quarter to prices between ~$102 and ~$119. The last quarter saw a whopping share increase of ~315% at prices between ~$119 and ~$171. The stock is currently trading at ~$156. there was a marginal additional increase this quarter.

note: berkshire likely avoided disclosing these holdings in the third quarter 2020 13f filing by making use of “section 13(f) confidential treatment requests”. an amendment filed later revealed the activity.

occidental petroleum (oxy): Berkshire made a $10 billion investment in oxy in April 2019 through 100,000 preferred shares with a liquidation value of $100,000 per share. those shares pay an 8% dividend and the transaction was made with warrants to purchase 83.86 million shares at $59.62. Last quarter, Berkshire bought ~136.4 million shares at prices between ~$31 and ~$59 per share. That was followed by a net increase in shares of ~22 million this quarter at prices between ~$57 and ~$60. the stock is currently trading at $63.51.

Note: Regulatory filings since the end of the quarter show they own 188.37 million shares. this compares to 158.5 million shares in the 13f report. the increase occurred at prices up to ~$60.40 per share. including warranties, berkshire owns ~27% of the business (~272 million shares).

activision blizzard (atvi): atvi is a 1.77% of the portfolio position established in Q4 2021 at prices between ~$57 and ~$81. the last quarter saw participation increase by ~340% at prices between ~$63 and ~$82. this quarter also saw an additional increase of ~6%. the stock is currently trading at $80.92.

See also: Why Tencent Is a Better Buy Than Alibaba | The Motley Fool

Note: Microsoft (MSFT) will acquire Activision Blizzard in a $95 per share all-cash deal announced in April.

global paramount (para): para is a 0.64% of the portfolio position bought last quarter at prices between $27.85 and $38.48 and is now just below the lower end of that range at $27.20. there was a ~14% share increase this quarter at prices between ~$24.25 and ~$38.

celanese corp (ce), mckesson corp (mck), markel corp (mkl), and ally financial (ally): these four positions were built over the past two quarters. the 0.36% ce stake was purchased at prices between ~$118 and ~$174 and the shares are currently trading at the lower end of that range at ~$118. mck is 0.20% of the portfolio position established at prices between ~$245 and ~$336 and is now at ~$374. the 0.20% mkl stake was built at prices between ~$1,187 and ~$1,504 and now costs ~$1,264. the 0.33% allied share saw a whopping ~235% increase this quarter at prices between ~$32 and ~$53. the stock is currently trading at $36.90.

decrease participation:

United States Bancorp (USB): USB’s 1.84% stake has been in the portfolio since 2006. The original position tripled during the 2007-2009 period. then it was relatively flat until the second quarter of 2013, when ~17 million shares were bought at prices between $32 and $36. the first half of 2018 had seen a ~16% increase at prices between $49 and $58 and that was followed by a ~25% increase in the third quarter of 2018 at prices between $50 and $55. Shares are now $49.30 and Berkshire’s base cost is ~$38. they control ~9.5% of the business. there was a ~5% cut this quarter.

kroger company (kr): kr is 0.83% of the portfolio position established in the fourth quarter of 2019 at prices between $24 and $29. the five quarters through Q3 2021 had seen a ~225% share increase at prices between ~$30 and ~$40. the stock is currently trading at $49.08. the last two quarters have seen ~15% sales at prices between ~$43.50 and ~$62.

Note: Berkshire’s ownership interest in Kroger is ~7.2%.

general motors (gm): gm is a 0.56% holding in the 13f portfolio which was first purchased in the first quarter of 2012 at prices between $21 and $30. by the third quarter of 2017, the position size had increased about six times (10 million shares to 60 million shares). q4 2017 saw a reduction: ~17% selling at prices between $40.50 and $46.50. there was a ~38% share increase in Q4 2018 at prices between $30.50 and $38.50. the first half of 2021 saw a sale of ~17% at prices between $40.50 and $64. that was followed by a ~15% reduction this quarter to prices between ~$31.50 and ~$43. the stock is currently trading at $38.99. the base cost of berkshire in gm is ~$31.

store equity (stor): the store holding was established in the second quarter of 2017 in a private placement transaction at $20.25 per share. Q2 2020 saw a ~30% share increase at prices between $14.50 and $26.50. in the last quarter, the stake was sold down ~40% at prices between ~$28.75 and ~$34.60. that was followed by a ~55% reduction this quarter at prices between ~$25 and ~$31. the stock is now at $29.22.

kept stable:

bank of america (bac): berkshire established this large (top three) ~11% of the portfolio position through the exercise of bank of america guarantees. the warrants had an exercise price of $7.14 compared to the current price of $36.64. the exercise cost was $5 billion and was financed using the $5 billion in 6% preferred stock they held. there was a ~30% share increase in Q3 2018 at prices between $27.75 and $31.80. since then, activity has been less.

note: Berkshire’s overall base cost is ~$14 and ownership interest is ~13%.

american express (axp) and coca-cola (ko): These two very big bets have been stable for the last ~9 years. buffett has said that these positions will remain “permanently”. Berkshire’s cost base on Axp and Ko is around $8.49 and $3.25 respectively and ownership stakes are ~20% and ~9.2% respectively.

kraft heinz co. (khc): khc is currently a fairly large position at 4.14% of the portfolio. Kraft Heinz was listed in July 2015 and Berkshire owns just over 325 million shares (~27% of the business). The involvement came about due to two transactions with 3G Capital as a partner: a ~$4 billion net investment in 2013 for half of Heinz and a ~$5 billion investment for the acquisition of the Kraft food group in early 2013. 2015. Berkshire’s cost basis in KHC is ~$30 per share compared to the current price of $38.83.

moody’s corp. (mco): mco is a 2.24% holding in portfolio 13f. it is a very long-term position and buffett’s cost basis is $10.05. the stock is currently trading at ~$322. Berkshire controls ~13% of the business.

citigroup inc. (c) and hp inc. (hpq): The 0.85% portfolio holding in citigroup was purchased last quarter at prices between ~$53 and ~$68 and is now near the lower end of that range at $54.18. hpq is 1.14% of the portfolio holding established last quarter at prices between ~$34 and ~$40 and the stock is currently trading near the lower end of that range at $34.50.

bank of new york mellon corp (bk): bk is a ~1% holding in portfolio 13f. the majority of the original position was purchased in the second quarter of 2012 at prices between $19.50 and $25. Recent activity is as follows: 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 is currently trading at $45.03. Berkshire’s cost basis in BK is ~$46 per share and ownership interest is 8.3%.

davita inc. (dva) – dva is ~1% of the portfolio position that was aggressively built over several quarters in 2012-13 at prices between $30 and $49. Shares are currently trading at ~$93 compared to Berkshire’s overall base cost of ~$45 per share. in Q3 2020, ~5% (2 million shares) were sold at $88 per share.

Note: Berkshire’s ownership interest in Davita is ~40%.

liberty siriusxm group (lsxma) (lsxmk): follow-up shares were acquired as a result of the recapitalization of liberty media in april 2016. shareholders received 1 share of liberty siriusxm group, 0 .25 Liberty Media Group shares and 0.1 Liberty Brave Group shares for each share you own. Berkshire owned 30 million shares of Liberty Media for which he received the same number of shares of Liberty SiriusXM Group. there was a share increase of ~40% in the second quarter of 2017 at a base cost of ~$40 per share. the second quarter of 2020 saw another share increase of ~27% primarily through the $25.47 per share rights offering the company announced last May. Last November, Berkshire exchanged its 43.66 million stake in Sirius XM for an additional 5.35 million shares of Liberty Sirius XM Class A Tracking Stock in a transaction with the parent company. the shares are currently trading at ~$45 and the holding is 0.76% of the portfolio.

See also: Intuit Completes Acquisition of Mailchimp | Mailchimp

verisign inc. (vrsn): vrsn was first purchased in the fourth quarter of 2012 at prices between $34 and $49.50. the position more than doubled in the first quarter of 2013 at prices between $38 and $48. buying continued through the second quarter of 2014 at prices up to $63. the stock is currently trading at ~$204 and the position is 0.71% of the portfolio (~10% of the business).

charter communications (chtr): chtr is 0.60% of the portfolio position. was established during the last three quarters of 2014 at prices between $118 and $170. in the second quarter of 2015, the position increased by ~42% at prices between $168 and $193 and that was followed by another increase of ~21% in the following quarter at prices between $167 and $195. the six quarters through Q4 2018 had seen a combined sale of ~25% at prices between $250 and $395 and that was followed by a ~20% decline in Q1 2019 at prices between $285 and $366. the second half of 2021 saw another ~25% reduction at prices between ~$605 and ~$821. Shares are currently trading at ~$483 compared to Berkshire’s cost basis of ~$178.

aon plc (aon): aon is a 0.39% of the portfolio position established in the first quarter of 2021 at prices between ~$202 and ~$234. the next quarter saw a ~7% increase at prices between ~$230 and ~$259. the shares are currently trading at ~$301.

amazon.com (amzn): amzn is a 0.38% holding of the portfolio established in Q1 2019 at prices between ~$75 and ~$91 and increased ~11% on next quarter at prices between ~$85 and ~$98. the shares are currently trading at ~$145.

note: prices listed above are adjusted for the 20-for-1 stock split in June.

snowflake inc. (snow): Snow had an IPO in September 2020. Shares began trading at ~$229 and are currently trading at ~$167. Berkshire acquired ~2% of the business at the IPO price of ~$120 per share.

t-mobile us (tmus): tmus is a small 0.23% share of the portfolio purchased in Q3 2020 at prices between ~$104 and ~$119 and doubled by far next quarter at prices between ~$110 and ~$135. currently trading at ~$147.

average liberty formula one (fwonk): fwonk is a small 0.15% of the portfolio position built over the last two quarters at prices between ~$52 and ~$70. the stock is now at ~$70.

rh (rh): 0.15% of the portfolio’s rh position was established in the third quarter of 2019 at prices between $119 and $174 and increased ~40% the next quarter to prices between $165 and $242. last quarter saw another share increase of ~20% at prices between ~$321 and ~$538. the shares are currently trading at ~$329.

note: berkshire controls ~9% of the business.

nu holdings (nu): nu had an initial public offering last December. shares started trading at ~$10 and are currently priced at $5.52. Berkshire’s ~$1bn stake dates back to a funding round in early 2021 when the valuation was ~$30bn. the current valuation is ~$18 billion.

soil & decor holdings (fnd): The minuscule 0.06% of the portfolio’s fnd position was established in Q3 2021 at prices between ~$104 and ~$131 and is now at $99.46. the last quarter saw a ~470% share increase at prices between ~$81 and ~$130.

stoneco ltd. (stne) – stne is a 0.03% position purchased in Q4 2018 at ~$21 per share. the first quarter of 2021 saw a ~25% reduction at prices between ~$60 and ~$94. shares are currently at $11.79.

Note: Berkshire has a 4.1% stake in Stoneco. In October 2018, WSJ reported that Berkshire had invested ~$300 million each in two fintechs: India’s PayTM and Brazil’s Stoneco. The investment in Paytm was made in August 2018, while the purchase of Stne followed its IPO in October 2018.

swamp & mclennan (mmc) – mmc is a small 0.02% holding of the portfolio established in Q3 2020 at prices between ~$107 and ~$119. there was a ~25% share increase in Q4 2020 at prices between ~$103 and ~$119. that was followed by a similar increase the next quarter to prices between ~$108 and ~$122. the second quarter of 2021 saw a complete turnaround: ~20% selling at prices between ~$122 and ~$142. that was followed by a reduction of about a third the next quarter to prices between ~$139 and ~$161. participation was nearly wiped out in Q4 2021 at prices between ~$151 and ~$174. the stock is now at ~$173.

globe life (gl), johnson & Johnson (JNJ), Lila Libertad Group (Lila) (Lilak), MasterCard Inc. (ma), mondelez international (mdlz), procter & gamble (pg), spdr s&p 500 trust etf (spy), united parcel service (ups), vanguard s&p 500 etf (voo), and visa inc . (v): These small positions (less than ~1% of the portfolio each) were flat this quarter. Berkshire’s ownership interest in global life is ~6%.

The following spreadsheet highlights the changes in holdings of Berkshire Hathaway 13F shares in the second quarter of 2022:

Warren Buffett - Berkshire Hathaway

Warren Buffett – Berkshire Hathaway’s Q2 2022 13F Report Q/Q Comparison (John Vincent (author))

source: john vincent. data constructed from berkshire hathaway 13f filings for Q1 2022 and Q2 2022.

See also: Pros & Cons of a Direct Listing vs. an IPO | ClickIPO

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