Warren Buffett (Berkshire Hathaway) Stock Portfolio – Update 2013 Q3

Warren Buffett’s Berkshire Hathaway stock holdings for Q3 2013 was filed on 11/14/2013. There was a lot buying activity during the third quarter of 2013, with a new holding in Exxon Mobile. Increases were made to Bank of New York Mellon, DaVita Healthcare Partners, Suncor Energy, US Bancorp, and Versign. Stakes in Conoco Phillips, Directv, Glaxosmithkline, and Sanofi were reduced. The filing is for the quarter ended of 9/30/2013:

 

Berkshire’s New Stock Holdings:

Exxon Mobile Corporation [XOM]

– A new stake was initiated the energy giant.
– According to an amended SEC filing, a total of 31,244,109 shares of Exxon was purchased. On 9/30/2013, the total of Berkshire’s holding had a market value of approximately $2.82 billion ($2,822,906,000).

 

Berkshire’s Stock Additions:

Bank of New York Mellon Corp. [BK]

– Berkshire increased its holding in Bank of New York Mellon by 8,807 shares (0.04%) up from 24,644,029 shares, bringing its total to 24,652,836 shares. On 9/30/2013, the total of Berkshire’s holding had a market value of approximately $744.27 million ($744,269,000). Berkshire’s stake was worth $1.98 billion ($1,978,783,081) at close ($56.30) on 11/8/2013.
– During Q2 2013, Berkshire’s stake increased 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.

 

DaVita Inc [DVA]

Berkshire doubled its holding in DaVita by 16,472,924 shares (110.01%) up from 14,973,906 shares, bringing its total to 31,446,830 shares. On 9/30/2013, the total of Berkshire’s holding had a market value of approximately $1.79 billion ($1,789,325,000). However, an SEC filing on 11/8/2013 showed Berkshire bought more DaVita and added 3,700,294 shares (11.7%) between 11/6/2013 – 11/8/2013, up from 31,446,830 shares to a total of 35,147,124 shares.

– During Q1 2013, its holding of the dialysis services company was increased for the 6th consecutive quarter since its initial purchase and added 1,365,971 shares (10.04%) up from 13,607,935 share, bringing the total to 14,973,906 shares. On 3/31/2013, the total value of Berkshire’s holding in DaVita was approximately $1.77 billion ($1,775,756,000).
– DaVita has been one of the more interesting holdings as it had continued to add after the first quarter According to the SEC Filing, between 7/2/2013 – 7/3/2013 it had added in multiple transactions 639,200 shares at prices ranging from $113.42 to $114.41, bringing its total to 15,613,106 shares as of 7/26/2013.
– On 5/7/2013 Berkshire signed a Standstill Agreement not to propose a merger (to increase its stake to 25%) without consent from DaVita board, if Berkshire owns more than 15%. Berkshire owned 14% of the healthcare company at the time. The agreement was a bit unusual for Berkshire, which makes one consider the possibility of a takeover. As I’ve mentioned before, DaVita was a long time favorite of Ted Weschler prior to joining Berkshire. Weschler was instrumental in helping Buffett more recently acquire the newspapers, and was the one who signed the DaVita agreement. This looks like the precursor move for him to help Buffett unload the elephant gun in a friendly takeover!
– During Q4 2012 Berkshire increased its stake in DaVita significantly by 3,410,366 shares (33.44%) up from 10,197,569 shares, bringing the total to 13,607,935. Berkshire added shares multiple times between the end of Q4 2012 and the end of Q1 2013
– In Q3 2012 Berkshire added 897,569 shares (9.65%) up from 9,300,000 shares, bringing the total to 10,197,569. After the third quarter, the company continued to buy 2,095,484 more shares (20.5%), bringing its total to 12,293,053 shares as of 11/26/2012.
– In Q2 2012 the company purchased 3,300,000 shares (55%), from 6,000,000 to a total of 9,300,000 shares.
– In Q1 2012 Berkshire more than doubled its stake by adding 3,315,500 shares (124%), from its original 2,684,500 to a total of 6,000,000 shares.
– DaVita Inc, was a new holding in Q4 2011.

Suncor Energy [SU]

– Berkshire increased its holding in Suncor by 240,500 shares (1.35%) up from 17,769,457 shares, bringing its total to 18,009,957 shares. On 9/30/2013, the total of Berkshire’s holding had a market value of approximately $644.4 million ($644,396,000).

– During Q2 2013, the integrated energy company was a new stake. 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.

US Bancorp [USB]
Berkshire increased its holding in USB for the third consecutive quarter by 840,200 shares (1.07%) up from 78,277,301 shares, bringing its total to 79,117,501 shares. On 9/30/2013, the total of Berkshire’s holding had a market value of approximately $2.89 billion ($2,894,119,000).
– During Q2 2013, its holding in US Bancorp was increased 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 again increased its holding in Verisign for a third consecutive quarter by 64,100 shares (0.59%) up from 10,897,420 shares, bringing its total to 10,961,520 shares. On 9/30/2013, the total of Berkshire’s holding had a market value of approximately $557.83 million ($557,832,000).
– In Q2 2013, its holding was increased 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.

 

 

Berkshire’s Stock Reductions:

ConocoPhillips [COP]

– Berkshire decreased its holding in ConocoPhillips by -10,594,641 shares (-43.92%) down from 24,123,911 shares, bringing its total to 13,529,270 shares. On 9/30/2013, the total of Berkshire’s holding had a market value of approximately $940.42 million ($940,419,000).

 

DIRECTV [DTV]

– Berkshire decreased its holding in DIRECTV by -760,700 shares (-2.04%) down from 37,275,400 shares, bringing its total to 36,514,700 shares. On 9/30/2013, the total of Berkshire’s holding had a market value of approximately $2.18 billion ($2,182,848,000).
– During Q1 2013, its holdings of DIRECTV was increased for the sixth consecutive quarter, 3,237,900 shares (9.51%) up from 34,037,500 shares, bringing its total to 37,275,400 shares. On 3/31/2013, the total value of Berkshire’s holdings in the digital television provider was approximately $2.1 billion ($2,109,415,000).
Q4 2012 4,481,900 shares were added (15.16%) up from 29,555,600 shares.
– In the third quarter (Q3 2012) 1,134,900 shares were added (3.99%) up from 28,420,700 shares to 29,555,600 shares.
– In Q2 2012 5,421,100 shares were added (23.6%) up from 22,999,600 shares to 28,420,700 shares.
– In the first quarter (Q1 2012), Berkshire added 2,651,200 shares (13%) from 20,348,400 shares, bringing its Q1 2012 total to 22,999,600 shares. During Q4 2011 Berkshire quadrupled its stake by adding 16,099,000 shares (378.85%) up from its original 4,249,400 shares, with a Q4 2011 total of 20,348,400 shares.
– DTV was a new holding in Q3 2011.

 

GlaxoSmithKline PLC [GSK]

– Berkshire decreased its holding in GSK by -1,130,202 shares (-76.57%) down from 1,476,021 shares, bringing its total to 345,819 shares. On 9/30/2013, the total of Berkshire’s holding had a market value of approximately $17.35 million ($17,350,000).

 

Sanofi [SNY]

– Berkshire decreased its holding in the French drug maker near a 5 year high, by -157,800 shares (-3.88%) down from 4,063,675 shares, bringing its total to 3,905,875 shares. On 9/30/2013, the total of Berkshire’s holding had a market value of approximately $197.75 million ($197,754,000).

 

Berkshire’s Stock Sell Offs:

None.

 

Media General Inc. [MEG]

– According to a SEC filing on 11/13/2013, Berkshire’s 4,646,220 Class A common shares of Media General were reclassified into 4,235,978 of Voting Common Stock and 410,242 of Non-Voting Stock.
– In Q3 2012, a new stake in the newspaper company was completed through World Media Enterprises (Berkshire’s subsidiary) on 6/25/2012. The deal involved 63 daily & weekly newspapers, cash, a loan agreement, and a 19.9% stake in Media General. See Warren Buffett’s Newspaper Purchases for details.
– A total of 4,646,220 Class A shares of Media General were acquired in the deal during the third of 2012, and was worth approximately $24 million ($24,067,000) as of 9/30/2012.

 

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, SNY 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 11/14/2013 SEC filing which discloses Berkshire Hathaway stock holdings here:
http://www.sec.gov/Archives/edgar/data/1067983/000095012313009777/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, Sanofi 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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