Berkshire Hathaway, under the leadership of Warren Buffett, has made significant adjustments to its portfolio, as outlined in the company's 13F filing for the second quarter of the year. These moves reflect Buffett's continued focus on diversification, strategic bets on certain sectors, and a cautious approach to others.
Buffett made headlines by initiating new positions in two companies, signaling his interest in broadening Berkshire Hathaway’s exposure to different sectors. The firm purchased 1.04 million shares in Heico Corporation (HEIA), marking its entry into the aerospace industry, and acquired 0.69 million shares in Ulta Beauty (ULTA), a prominent player in the retail space. The Ulta Beauty investment, though relatively modest at around $260 million, indicates Buffett’s confidence in the strength and growth potential of the beauty sector.
One of the standout moves this quarter was Berkshire Hathaway’s substantial increase in its holdings of Sirius XM Holdings (SIRI). The company’s stake jumped from 36.68 million shares to a staggering 132.88 million shares, reflecting a strong belief in the future prospects of the satellite radio company. This expanded position was valued at approximately $376 million by the end of the quarter.
Additionally, Buffett increased Berkshire’s investments in Occidental Petroleum (OXY), Liberty Media Corporation Series A and C (LSXMA, LSXMK), and Chubb Limited (CB), underscoring his long-term commitment to the energy, media, and insurance sectors.
Buffett's long-standing investment philosophy was evident in his decision to maintain significant positions in several cornerstone companies. Berkshire Hathaway continues to hold substantial shares in Bank of America (BAC), Coca-Cola (KO), Kraft Heinz (KHC), American Express (AXP), Citigroup (C), DaVita (DVA), and Moody’s (MCO). These holdings demonstrate Buffett’s confidence in the enduring value of these established companies.
In a surprising move, Buffett decided to completely exit Berkshire Hathaway’s positions in Paramount Global (PARA) and Snowflake Inc. (SNOW). This decision reflects a reassessment of these companies' future prospects. The exit from Paramount Global is particularly notable, as Buffett had previously acknowledged that his investment in the company did not pan out as expected. The sale of Snowflake shares suggests a shift in his outlook on the data warehousing sector.
Buffett’s decision to significantly reduce Berkshire Hathaway’s stake in Apple Inc. (AAPL) from 789.37 million shares to 400 million was another key development. While part of this reduction had been previously disclosed, the scale of the cut indicates a more cautious stance on what has been one of his most prominent investments. Additionally, Berkshire trimmed its positions in Chevron (CVX), Capital One (COF), Floor & Decor (FND), Louisiana-Pacific Corporation (LPX), and T-Mobile US (TMUS).
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