Warren Buffet’s Berkshire Hathaway stock updates for the second quarter of 2008:
NRG [NRG Energy]
– 3,238,100 shares were purchased. The N.J. based power wholesaler owns 49 power plants with a total capacity of 24,120 megawatts. It is involved in construction & operation of power generation facilities, the transacting in and trading of fuel and transportation services, and the trading of energy, capacity and related products in the United States and international markets.
– Again added to the French drug & vaccine maker for another straight quarter. 317,200 shares were added bringing the total to 3,903,933 shares. No surprise here as this company has been the cheapest it has been in years just from the P/E metric alone, among other metrics & valuations.
– Again added to the climate control and industrial technology company. 4,700,000 shares were purchased, brining the total to 5,636,600 shares. Its P/E is a very low 3.56.
Buffet did not increase his holdings of WFC or USB during this quarter. It could be that the price declines of his current additions were more attractive, or that his positions in the banks are large enough. It could also be that his positions in other areas/industries need to be bolstered. Likely it is a combination of all these points and other things.
– Major reduction in shares of the company to 13,845,000 from 35,563,200. Berkshire may have taken advantage large stock price increase due to the take over deal with Belgian brewer InBev SA.
– Contrary to many news reports his holdings in Trane Inc has not been eliminated. This is because on December 17 2007, Ingersoll-Rand (IR) announced that the Company had executed a definitive agreement to acquire Trane Inc. IR’s second quarter profit increased 26% with help from the Trane Inc deal.
Berkshire also received permission to conceal the status of its investment in the oil giant Conoco Phillips for this quarter. Berkshire could have either sold off or added significantly to its investment. Berkshire held 17,508,700 shares of the company at the end of the first quarter.
You can view the official SEC filing (June 30 2008) which discloses Berkshire Hathaway stock holdings here:
Warren Buffet’s teacher/mentor Benjamin Graham’s classic book The Intelligent Investor is available online from Amazon.ca/com. I have placed a link to the specific version/edition that I recommend. There are a few editions out, but this one has the Introduction and Appendix written by Warren Buffet (informative extra commentary). Chapters/Indigo is sold out at the moment but I added a link to the audiobook. However, I find having it in textual format is better for referencing. This book is a must read for followers of Warren Buffet, and the best investment book I ever read.
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