Warren Buffett (Berkshire Hathaway) Stock Portfolio – Update 2013 Q2

Warren Buffett’s Berkshire Hathaway stock holdings for Q2 2013 was filed on 8/14/2013. There was a lot buying activity during the second quarter of 2013, with new holdings in DISH Network and Suncor Energy. Increases were made to Bank of New York Mellon, Chicago Bridge & Iron Company, General Motors, National Oilwell Varco, US Bancorp, Versign, and Wells Fargo. The stakes in Gannett was eliminated. Stakes in Kraft Foods Group, Moody’s, and Mondelez were reduced. The filing is for the quarter ended of 6/30/2013:

 

Berkshire’s New Stock Holdings:

Dish Network Corp [DISH]

– A new stake was initiated in the pay TV provider.
– A total of 547,312 shares of DISH were purchased during the quarter, and was worth approximately $23 million ($23,272,000) as of 6/30/2013.

 

Suncor Energy [SU]

– A new stake was initiated in the integrated energy company.
– A total of 17,769,457 shares of Suncor were purchased during the quarter, and was worth approximately $524 million ($524,021,000) as of 6/30/2013.

 

Berkshire’s Stock Additions:

Bank of New York Mellon Corp. [BK]

Berkshire increased its holding in Bank of New York Mellon by 5,704,914 shares (30.12%) up from 18,939,115 shares, bringing its total to 24,644,029 shares. On 6/30/2013, the total of Berkshire’s holding had a market value of approximately $691 million ($691,264,000).
– During Q1 2013, its stake was reduced in the bank by -694,800 shares (-3.54%) down from 19,633,915 shares, bringing its total to 18,939,115 shares. On 3/31/2013, the total of Berkshire’s holding had a market value of approximately $530 million ($530,106,000).
– During Q4 2012, Berkshire’s stake increased by 914,400 shares (4.88%) up from 18,719,515, bringing the total to 19,633,915 shares.
– During Q2 2012 it had doubled its shares adding 13,112,049 (233.8%) to a total of 18,719,515 shares.
– During Q1 2012 it had doubled its shares to 3,813,551 (213%) from 1,793,915, to a total of 5,607,466 shares. The bank was a new holding in Q3 2010.

 

Chicago Bridge & Iron Company [CBI]

– Berkshire increased its holding in Chicago Bridge & Iron by 3,042,155 shares (46.74%) up from 6,508,600 shares, bringing its total to 9,550,755 shares. On 6/30/2013, the total of Berkshire’s holding had a market value of approximately $570 million ($569,798,000).
– During the previous quarter Q1 2013, its stake was initiated in the engineering procurement & construction giant. A total of 6,508,600 shares were purchased and was worth approximately $404 million ($404,185,000) as of 3/31/2013.

General Motors Company [GM]

– Berkshire increased its holding in GM by 15,000,000 shares (60%) up from 25,000,000 shares, bringing its total to 40,000,000 shares. On 6/30/2013, the total of Berkshire’s holding had a market value of approximately $1.33 billion ($1,332,400,000).
– During Q4 2012 Berkshire increased its stake in the Detroit based global automotive manufacturer, adding 10,000,000 shares (66.67%) up from 15,000,000 shares, bringing its total to 25,000,000 shares. On 12/31/2012, the total value of Berkshire’s holding in GM was approximately $720 million ($720,750,000).
– During Q3 2012 Berkshire added 5,000,000 shares (50%) up from 10,000,000 shares to 15,000,000 shares. On 9/30/2012, the total value of Berkshire’s holding in GM was approximately $341 million ($341,250,000). A new stake was initiated in GM during the first quarter (Q1 2012).

 

National Oilwell Varco, Inc. [NOV]

– Berkshire increased its holding in National Oilwell Varco by 1,395,700 shares (18.65%) up from 7,484,300 shares, bringing its total to 8,880,000 shares. On 6/30/2013, the total of Berkshire’s holding had a market value of approximately $611.83 million ($611,832,000).
– During Q1 2013, added 2,189,500 shares (41.35%) up from 5,294,800 shares, bringing its total to 7,484,300 shares. On 3/31/2013, the total value of Berkshire’s holding in the maker of equipment & components used in the oil & gas industry, had a market value of approximately $529 million ($529,514,000).
– During Q4 2012 1,108,000 shares (26.46%) were added up from 4,186,800 shares, bringing its total to 5,294,800 shares.
– In Q3 2012 Berkshire nearly doubled its stake by adding 1,345,600 shares (47.36%) up from 2,841,200 to 4,186,800 shares.
– The holding was a new stake in Q2 2012.

 

US Bancorp [USB]

– Berkshire increased its holding in US Bancorp by 16,819,200 shares (27.37%) up from 61,458,101 shares, bringing its total to 78,277,301 shares. On 6/30/2013, the total of Berkshire’s holding had a market value of approximately $2.83 billion ($2,829,725,000).
– During Q1 2013, Berkshire increased its stake in the regional bank, adding 193,500 shares (0.32%) up from 1,956,791 shares, bringing its total to 2,085,274 shares. On 3/31/2013, the total value of Berkshire’s holding had a market value of approximately $2 billion($2,085,274,000).
– In Q3 2012, Berkshire again reduced its holdings in US Bank slightly for the third consecutive quarter by 4,736,112 shares (-7.17%), down from 66,000,713 shares, bringing the total to 61,264,601 shares. On 9/30/2012, the company’s holdings in the bank was worth approximately $2.1 billion ($2,101,375,000).
– During Q2 2012 Berkshire reduced its holdings in USB by 3,038,613 shares (-4.4%), down from 69,039,326 shares, bringing the total to 66,000,713 shares.
– During Q1 2012 it reduced its stake by 100 shares (-0.0001%), down from 69,039,426 shares, to a total of 69,039,326 shares.

VeriSign Inc [VRSN]

– Berkshire increased its holding in Verisign by 2,723,320 shares (33.32%) up from 8,174,100 shares, bringing its total to 10,897,420 shares. On 6/30/2013, the total of Berkshire’s holding had a market value of approximately $486.68 million ($486,679,000).
– During Q1 2013, Berkshire increased its stake in the internet infrastructure services company, adding 4,488,400 shares (121.78%) up from 3,685,700 shares, bringing its total to 8,174,100 shares. On 3/31/2013, the total of Berkshire’s holding had a market value of approximately $386 million ($386,389,000).
– VeriSign was a new holding in Q4 2012.

 

Wells Fargo & Co. [WFC]

Buffett increased Berkshire’s holding in Wells Fargo for the ninth consecutive quarter, and the 14th time in 4 years. During the second quarter the holdings rose by 4,961,300 shares (1.08%) up from 458,170,323 shares, bringing its total to 463,131,623 shares. On 6/30/2013, the total of Berkshire’s holding had a market value of approximately $19.11 billion ($19,113,442,000).
– During Q1 2013, another 18,312,462 shares (4.16%) were added up from 439,857,861 shares, bringing its total to 458,170,323 shares. On 3/31/2013, the total of Berkshire’s holding had a market value of approximately $16.9 billion ($16,947,720,000).
– During Q4 2012 another 17,308,316 shares (4.09%) were purchased, bringing the total number of shares from 422,549,545 to 439,857,861 shares. Berkshire’s stake in Wells Fargo had a market value of approximately $15 billion ($15,034,342,000).
– During Q3 2012 Buffett added 11,504,300 shares (2.79%) bringing the total number of shares from 411,045,245 to 422,549,545 shares.
– During Q2 2012 Buffett increased Berkshire’s holding by another 16,710,317 shares (4.2%) from 394,334,928 to 411,045,245 shares.
– During Q1 2012 Berkshire’s stake in WFC increased by 10,631,300 shares (3%) from 383,703,628 shares to a total of 394,334,928 shares.
– Buffett had previously added to his favorite bank during Q4 2011 (22,333,820 shares, 6.18%), Q3 0211 (9,042,200 shares, 2.56%), the Q2 2011 (9,703,683 shares, 2.83%), Q4 2010 (6,215,080 shares, 1.8%), as well as during the 3rd quarter of 2010, and 3 out of 4 quarters in 2009.

 

Berkshire’s Stock Reductions:

 

Kraft Foods Group Inc. [KRFT]

– Berkshire decreased its holding in Kraft Foods by -1,409,395 shares (-87.97%) down from 1,602,061 shares, bringing its total to 192,666 shares. On 6/30/2013, the total of Berkshire’s holding had a market value of approximately $10.76 million ($10,764,000).
– During Q1 2013,Berkshire decreased its holding in the grocery manufacturer selling -66,653 shares (-3.99%) down from 1,668,714 shares, bringing its total to 1,602,061 shares. On 3/31/2013, the total of Berkshire’s holding had a market value of approximately $82.5 million ($82,554,000).
– During Q4 2012 Berkshire reduced its holding in Kraft Foods Inc by 8,486,069 shares (-83.56%), down from 30,464,350 shares, bringing the total to just 1,668,714 shares. On 12/31/2012, the company’s holdings in the Kraft grocery business was worth approximately $75 million ($75,877,000).

– Following the spinoff of Kraft Foods Group Inc [KRFT] (North American grocery business) from Mondelez International Inc [MDLZ] (candy & snacks business) formerly Kraft Foods Inc [KFT], Berkshire would have received 10,154,783 of the new Kraft Foods Group Inc shares and 30,464,350 of Mondelez International Inc.

 

Mondelez International Inc [MDLZ]

– Berkshire decreased its holding in Mondelez by -6,474,750 shares (-91.8%) down from 7,052,750 shares, bringing its total to 578,000 shares. On 6/30/2013, the total of Berkshire’s holding had a market value of approximately $16.49 million ($16,490,000).
– During Q1 2013, Berkshire reduced its stake in the global snacks giant selling -5,787,700 shares (-45.079%) down from 12,840,450 shares, bringing its total to 7,052,750 shares. On 3/31/2013, the total of Berkshire’s holding had a market value of approximately $215.9 million ($215,919,000).
– During Q4 2012 Berkshire reduced its stake in Mondelez by 17,623,900 shares (-57.85%), down from 30,464,350 shares, bringing the total to 12,840,450 shares.
– During the third quarter of 2012 (Q3 2012) Berkshire did not sell or reduce its holdings in the new Kraft Foods Group or Mondelez International Inc [MDLZ], as the spin-off did not yet take place during the reporting period.
– In Q2 2012 Berkshire reduced its holdings in Kraft (for the 5th consecutive quarter), selling 19,190,775 shares (-24.6%), reducing its holding from 78,017,165 shares, bringing the total to 58,826,390 shares.
– In Q1 2012 (by 9,017,548 shares, -10%), Q4 2011 (by 2,711,995 shares, -3.02%), Q3 2011 (by 9,720,916 shares, -9.77%), and Q2 2011 (by 5,746,960 shares, -5.46%).

 

Moody’s Corp [MCO]

– Berkshire decreased its holding in Moody’s by -3,493,072 shares (-12.29%) down from 28,415,250 shares, bringing its total to 24,922,178 shares. On 6/30/2013, the total of Berkshire’s holding had a market value of approximately $1.52 billion ($1,518,508,000).

 

Berkshire’s Stock Sell Offs:

Gannett Inc [GCII]

‘- Berkshire eliminated its stake in Gannett selling off a total of 1,740,231 shares.

Buffett, Combs, Weschler:

– During the second quarter of 2012 Buffett said Weschler and Combs would oversee about $4 billion each, nearly double the amount Buffett previously said at the company’s 2012 annual meeting (May 5 2012). Buffett though, is still responsible for the larger investments (SU, IBM, WFC) and likely the older holdings (IR, GE, JNJ, PG, USB, UPS, VRSK).
– Stake increases in DaVita were likely Ted Weshcler’s, as he previous held it prior to joining Berkshire. This is one of the more interesting holdings as Berkshire continued to add to DVA continuously ever since it became a holding. The holding has now become worth over $1.67 billion alone.
– CVS, Dollar General, DIRECTV, and Visa were already in the Berkshire portfolio before Weschler, and it is likely Todd Combs had made those stock moves. Some were also previous investments held by Combs as well.
– The size of DISH, BK, DE, GM, PCP, WBC, NOV, and VIAB stakes suggest they are either Combs or Weschler’s picks.
– It has been revealed that Weschler was also responsible for putting together the newspaper deals.

– As I mentioned in previous summaries, it is likely that the long time holdings of JNJ, KRFT/MDLZ, PG, or USB were not bad investments and does not mean Buffett doesn’t like the businesses anymore (had mentioned in Q2 2012 that he thinks they are strong businesses), but perhaps that they have already appreciated significantly over the years, and likely selling them to provide capital to Combs & Weschler as well has to himself in order to allocate towards better opportunities.

 

SEC Filing:

You can view the 8/14/2013 SEC filing which discloses Berkshire Hathaway stock holdings here:
http://www.sec.gov/Archives/edgar/data/1067983/000095012313006925/xslForm13F_X01/form13fInfoTable.xml

The filing does not differentiate between investments that are made by Berkshire Hathaway, its subsidiaries, Todd Combs, Ted Weschler, or Warren Buffett himself (as the chairman and chief executive of the company). Buffett usually makes his stock investments for Berkshire Hathaway through his insurance arms (Berkshire Hathaway Life Insurance Co. of Nebraska, Columbia insurance Co, GEICO, National Indemnity Co, Wesco Financial, etc.).

 

Full Disclosure:

I am long Berkshire Hathaway [BRK.A /BRK.B], DaVita, Wells Fargo, Kraft, Mondelez. I do not plan on acquiring or selling shares, of any of the companies mentioned within this post, within the next 3 trading days.

 

Recommended Warren Buffett Related Books:

Although its easy to follow and copy Warren Buffett’s stock moves (buys/sells), we only learn of his actions months after it has been done (SEC filing is always later). We would never know for sure why the move was made or what other reasons were behind it.

Buffett recommends investors who want to learn how he invests, to read books that he specifically endorses and recommends, as well as past Berkshire Hathaway annual reports. The following is list of those few books (I’ve have read these myself and learned to invest like Buffett):

http://ws.amazon.com/widgets/q?ServiceVersion=20070822&MarketPlace=US&ID=V20070822/US/theinvblo-20/8001/ca839ced-a496-4810-859a-2b97d836041fAmazon.com Widgets

All of the above books are also featured in my Amazon.com and Amazon.ca Associates Store.

Thanks and Happy Investing! – The Investment Blogger © 2013

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