Berkshire Hathaway Inc. (BRK.A)(BRK.B), the multibillion-dollar conglomerate run by Warren Buffett (Trades, Portfolio), disclosed its equity portfolio for the second quarter of 2023 on Monday.
With a cash pile of around $150 billion to spend on stocks at the end of June, the renowned guru and his two portfolio managers, Ted Weschler and Todd Combs,dedicated a lot of cash to scaling up the investment in Occidental Petroleum Corp. (OXY). It now owns 25.33% of the company’s outstanding shares.
Other notable buys for the quarter that were reported in the 13F filing included new positions in homebuilders D.R. Horton Inc. (DHI, Financial), NVR Inc. (NVR, Financial) and Lennar Corp. (LEN.B, Financial) as well as an increased bet on Capital One Financial Corp. (COF, Financial).
As for the sell side, Berkshire divested of the McKesson Corp. (MCK, Financial), Marsh & McLennan Companies Inc. (MMC, Financial) and Vitesse Energy Inc. (VTS, Financial) holdings. He also trimmed the investments in Activision Blizzard Inc. (ATVI, Financial), Chevron Corp. (CVX, Financial), General Motors Co. (GM, Financial), Globe Life Inc. (GL, Financial) and Celanese Corp. (CE, Financial).
Investors should be aware 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but they can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.
Berkshire’s five largest holdings, accounting for over half of the equity portfolio, are Apple Inc. (AAPL, Financial), Bank of America Corp. (BAC, Financial), American Express Co. (AXP, Financial), Coca-Cola Co. (KO, Financial) and Chevron.
The guru’s $348.19 billion equity portfolio consisted of 49 stocks as of June 30.
Occidental Petroleum
As previously disclosed, Buffett increased his Occidental Petroleum (OXY) stake by 5.87% during the second quarter, buying 12.42million shares. The transaction had an impact of 0.21% on the equity portfolio. The stock traded for an average price of $60.03 per share during the quarter.
The position currently occupies 3.78% of the equity portfolio and is now his sixth-largest holding at 224.13 million shares. He has gained approximately 21.16% on the investment so far.
The Houston-based oil and gas producer has a $57.66 billion market cap; its shares were trading around $65.18 on Monday with a price-earnings ratio of 11.07, a price-book ratio of 2.81 and a price-sales ratio of 2.03.
The GF Value Line suggests the stock is modestly overvalued currently based on historical ratios, past financial performance and analysts’ future earnings projections.
D.R. Horton
The guru invested in 5.97 million shares of D.R. Horton (DHI, Financial), allocating 0.21% of the equity portfolio to the stake. Shares traded for an average price of $109.16 each during the quarter.
The Arlington, Texas-based homebuilder has a market cap of $41.71 billion; its shares were trading around $123.28 on Monday with a price-earnings ratio of 8.77, a price-book ratio of 1.93 and a price-sales ratio of 1.23.
According to the GF Value Line, the stock is fairly valued currently.
NVR
The investor picked up 11,112 shares of NVR (NVR, Financial), dedicating 0.02% of the equity portfolio to the position. During the quarter, the stock traded for an average per-share price of $5,816.26.
The homebuilder, which is headquartered in Reston, Virginia, has a $20.10 billion market cap; its shares were trading around $$6,158.70 on Monday with a price-earnings ratio of 13.15, a price-book ratio of 4.83 and a price-sales ratio of 2.12.
Based on the GF Value Line, the stock appears to be fairly valued.
Lennar
Buffett entered a 152,572-share holding in Lennar (LEN.B, Financial). The Class B stock traded for an average price of $98.59 per share during the quarter.
The Miami-based home construction company has a $35.38 billion market cap; its Class B shares were trading around $112.75 on Monday with a price-earnings ratio of 7.70, a price-book ratio of 1.44 and a price-sales ratio of 1.05.
The GF Value Line suggests the stock is fairly valued currently.
Capital One Financial
The Oracle of Omaha increased the Capital One Financial (COF, Financial) stake by 25.69%, buying 2.55 million shares. The transaction impacted the equity portfolio by 0.08%. Shares traded for an average price of $100.06 each during the quarter.
Buffett now holds a total of 12.47 million shares, which occupy 5.56% of the equity portfolio. GuruFocus estimates he has gained 5.24% on the investment to date.
Headquartered in McLean, Virginia, the bank holding company has a market cap of $41.64 billion; its shares were trading around $109.16 on Monday with a price-earnings ratio of 8.36, a price-book ratio of 0.76 and a price-sales ratio of 1.17.
According to the GF Value Line, the stock is modestly undervalued currently.
Activision Blizzard
The investor curbed the Activision Blizzard (ATVI, Financial) stake by 70.35%, selling 34.78 million shares. The transaction had an impact of -0.91% on the equity portfolio. During the quarter, the stock traded for an average per-share price of $81.
He now holds 14.65 million shares, accounting for 0.35% of the equity portfolio. GuruFocus data shows Buffett has gained 8.20% on the investment thus far.
The video game developer, which is based in Santa Monica, California, has a $71.43 billion market cap; its shares were trading around $90.79 on Monday with a price-earnings ratio of 33.26, a price-book ratio of 3.43 and a price-sales ratio of 8.26.
Based on the GF Value Line, the stock appears to be fairly valued currently.
Chevron
With an impact of -0.47% on the equity portfolio, Buffett trimmed the Chevron (CVX, Financial) stake by 7.01%, selling 9.28 million shares. The stock traded for an average price of $160.37 per share during the quarter.
He now holds 123.12 million shares total, which represent 5.56% of the equity portfolio. GuruFocus says he has gained 23.89% on the investment so far, which is his fifth-largest holding.
The energy giant headquartered in San Ramon, California has a market cap of $312.90 billion; its shares were trading around $164.03 on Monday with a price-earnings ratio of 10.40, a price-book ratio of 1.94 and a price-sales ratio of 1.47.
The GF Value Line suggests the stock is fairly valued currently.
McKesson
The guru sold his remaining 2.28 million shares of McKesson (MCK, Financial), impacting the equity portfolio by -0.25%. Shares traded for an average price of $383.91 each during the quarter.
GuruFocus found he gained an estimated 37.30% on the investment over its lifetime.
The Irving, Texas-based health care company has a $59.09 billion market cap; its shares were trading around $438 on Monday with a price-earnings ratio of 16.34and a price-sales ratio of 0.22.
According to the GF Value Line, the stock is modestly overvalued.
Marsh & McLennan
Buffett divested of his 404,911-share investment in Marsh & McLennan (MMC, Financial), which impacted the equity portfolio by -0.02%. During the quarter, the stock traded for an average per-share price of $177.28.
GuruFocus data shows he gained around 36.51% on the investment.
The insurance company, which is headquartered in New York, has a market cap of $94.94 billion; its shares were trading around $192.20 on Monday with a price-earnings ratio of 29.34, a price-book ratio of 7.94 and a price-sales ratio of 4.46.
Based on the GF Value Line, the stock appears to be fairly valued.
See the rest of Buffett’s portfolio here.
