Warren Buffett (Berkshire Hathaway) Stock Portfolio – Update 2014 Q1


Warren Buffett’s Berkshire Hathaway stock holdings for Q1 2014 was filed on 5/15/2014. There less activity overall during the first quarter of 2014, with a new holding in Verizon and the Class C shares of Liberty Global PLC (via Class A stock dividend distribution). Increases were made to DaVita, IBM, Liberty Global (Class A shares), US Bancorp, Verisign, and WalMart. Stakes in Directv, General Motors, Phillips 66, and Starz were reduced. No stakes were eliminated. The filing is for the quarter ended of 3/31/2014:

Berkshire’s New Stock Holdings:

Liberty Global PLC (Class C Shares) [LBTYK]

– Berkshire initiated a new stake in Liberty Global PLC’s Class C Shares, with 7,346,967 shares. On 3/31/2014, the total of Berkshire’s holding had a market value of approximately $299.1 million ($299,095,000). In January, Liberty Global distributed one Class C share per every Class A share held [http://www.libertyglobal.com/ir-dividend-2014-q-a.html]. Berkshire increased it’s existing stake in the Class A shares to a total of 7,346,967 shares during the quarter, and therefore received an equal amount of Class C shares.
– Liberty Global PLC, was a new holding in Q4 2013. An initial stake of 2,948,284 shares was purchased. On 12/31/2013, the total of Berkshire’s holding had a market value of approximately $262.4 million ($262,397,000).

 

Verizon Communications [VZ]

– Berkshire initiated a stake in Verizon Communications buying 11,022,742 shares, bringing its total to 11,022,743 shares. On 3/31/2014, the total of Berkshire’s holding had a market value of approximately $524.35 million ($524,352,000).

 

Berkshire’s Stock Additions:

DaVita Inc [DVA]

– Berkshire increased its stake in DVA by 1,159,858 shares (3.18%) up from 36,461,294 shares, bringing its total to 37,621,152 shares. On 3/31/2014, the total of Berkshire’s holding had a market value of approximately $2.59 billion ($2,590,216,000). This has been the eighth time in nine quarters that it had purchased shares of DVA.
– During Q4 2013 Berkshire added 1,314,170 shares (3.74%) increasing it’s stake from 35,147,124 shares (since the SEC filing on 11/8/2013), bringing its total to 36,461,294 shares. On 12/31/2013, the total of Berkshire’s holding had a market value of approximately $2.31 billion ($2,310,552,000).
– During Q3 2013 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.
– 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.

 

International Business Machines [IBM]

– Berkshire increased its stake in IBM by 233,100 shares (.34%) up from 68,121,984 shares, bringing its total to 68,355,084 shares. On 3/31/2014, the total of Berkshire’s holding had a market value of approximately $13.16 billion ($13,157,670,000).
– Last year during Q1 2013, Buffett increased Berkshire’s holdings of International Business Machines for the sixth consecutive quarter, adding 6,500 shares (0.01%) up from 68,115,484 shares, bringing its total to 68,121,984 shares. On 3/31/2013, the total value of Berkshire’s holdings in IBM was approximately $14.5 billion ($14,530,420,000).
– During the previous quarter Q4 2012 597,588 shares were added (0.88%) up from 67,517,896 shares, bringing its total to 68,115,484 shares.
– In Q3 2012 Buffett added 872,500 shares (1.3%) up from 66,645,396 shares to 67,517,896 shares.
– In Q2 2012 Buffett added shares for the third consecutive quarter with 2,237,596 more shares (3.5%) up from 64,395,700 shares.
– During Q1 2012 Berkshire added 489,769 shares (1%), from 63,905,931 shares, bringing its total to 64,395,700 shares.
– Buffett increased Berkshire’s holdings of IBM in Q4 2011, to an approximate 5.5% ownership of the company, approximately $12 billion ($11,751,023,000) stake by 12/31/2011.

 

Liberty Global PLC [LBTYA]

– Berkshire increased its stake in Liberty Global PLC Class A Shares) by 4,398,683 shares (149.19%) up from 2,948,285 shares, bringing its total to 7,346,968 shares. On 3/31/2014, the total of Berkshire’s holding had a market value of approximately $305.63 million ($305,634,000).
– During Q4 2013 a new stake was made in the international cable company, purchasing 2,948,284 shares. On 12/31/2013, the total of Berkshire’s holding had a market value of approximately $262.4 million ($262,397,000).

 

US Bancorp [USB]

– Berkshire increased its stake in USB for the fifth consecutive quarter by 705,796 shares (.89%) up from 79,320,901 shares, bringing its total to 80,026,697 shares. On 3/31/2014, the total of Berkshire’s holding had a market value of approximately $3.43 billion ($3,429,944,000).
– During Q4 2013 Berkshire increased its holding in the bank by 203,400 shares (.26%) up from 79,117,501 shares, bringing its total to 79,320,901 shares. On 12/31/2013, the total of Berkshire’s holding had a market value of approximately $3.2 billion ($3,204,565,000).
– During Q3 2013 Berkshire increased its stake 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 increased its stake in Verisign by 724,134 shares (6.61%) up from 10,961,520 shares, bringing its total to 11,685,654 shares. On 3/31/2014, the total of Berkshire’s holding had a market value of approximately $629.97 million ($629,974,000).
– During Q3 2013, its holding in Verisign was increased 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.

 

Wal-Mart Stores Inc [WMT]

– Berkshire increased its stake in Walmart by 8,568,679 shares (17.32%) up from 49,483,733 shares, bringing its total to 58,052,412 shares. On 3/31/2014, the total of Berkshire’s holding had a market value of approximately $4.44 billion ($4,436,946,000).
– During Q4 2013, Berkshire added 236,498 shares (.48%) up from 49,247,235 shares, bringing its total to 49,483,733 shares. On 12/31/2013, the total of Berkshire’s holding had a market value of approximately $3.89 billion ($3,893,875,000).
– During Q1 2013, Berkshire added 1,746,053 shares (3.68%) up from 47,501,182 shares, bringing its total to 49,247,235 shares.
– During Q4 2012 the company added 793,040 shares (1.69%) up from 46,708,142 shares, bringing its total to 47,501,182 shares.
– In Q1 2012 Berkshire increased its stake by 7,671,000 shares (20%) from 39,037,142 shares to 46,708,142 shares.

 

Berkshire’s Stock Reductions:

DIRECTV [DTV]

– Berkshire decreased its stake in DIRECTV by -2,000,000 shares (-5.48%) down from 36,514,700 shares, bringing its total to 34,514,700 shares. On 3/31/2014, the total of Berkshire’s holding had a market value of approximately $2.64 billion ($2,637,614,000).
– During Q3 2013, Berkshire reduced its holding 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.

 

General Motors Company [GM]

– Berkshire decreased its stake in General Motors by -10,000,000 shares (-25.%) down from 40,000,000 shares, bringing its total to 30,000,000 shares. On 3/31/2014, the total of Berkshire’s holding had a market value of approximately $1.03 billion ($1,032,600,000).
– During Q2 2013, Berkshire added 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).

 

Phillips 66 [PSX]

– Berkshire decreased its stake in Phillips 66 by -17,422,615 shares (-64.14%) down from 27,163,918 shares, bringing its total to 9,741,303 shares. On 3/31/2014, the total of Berkshire’s holding had a market value of approximately $750.66 million ($750,664,000).
– In Q2 2012, Phillips 66 was a new stake. A total of 27,163,918 shares was initiated during the quarter, and was worth approximately $902 million ($902,928,000) as of 6/30/2012.

 

Starz Inc [STRZA]

– Berkshire decreased its stake in Starz by -2,622,340 shares (-57.74%) down from 4,541,881 shares, bringing its total to 1,919,541 shares. On 3/31/2014, the total of Berkshire’s holding had a market value of approximately $61.96 million ($61,963,000).
During Q3 2013, Berkshire decreased its stake by -1,080,459 shares (-19.22%) down from 5,622,340 shares, bringing its total to 4,541,881 shares. On 12/31/2013, the total of Berkshire’s holding had a market value of approximately $132.8 million ($132,804,000).
– During Q1 2013, Starz was a new holding and entry in the SEC filing. Starz was a spin-off from the existing holding in Liberty Media Corporation, and was not a new purchase. Both Liberty Media and Starz began trading as separate companies on 1/14/2013.

 

 

Berkshire’s Stock Sell Offs:

– No stock sell offs this quarter

 

Other:

Mastercard Inc [MA]

– Although Berkshire did not increase its stake in Mastercard it’s number of shares increased to 3,645,000 shares from 405,000 shares, due to the 10:1 stock split in late January 2014. It’s total number of shares was 4,050,000 shares. On 3/31/2014, the total of Berkshire’s holding had a market value of approximately $302.54 million ($302,535,000).

 

 

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 5/15/2014 SEC filing which discloses Berkshire Hathaway stock holdings here:
http://www.sec.gov/Archives/edgar/data/1067983/000095012314006252/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. 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 all but two of these and learned to invest like Buffett):

DREAM BIG – Cristiane Correa

Business Adventures – John Brooks

The Snowball: Warren Buffett and the Business of Life – Alice Schroeder

Poor Charlie’s Almanack – Peter D Kaufman

The Intelligent Investor – Benjamin Graham

Thanks and Happy Investing! – The Investment Blogger © 2014

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