Warren Buffett (Berkshire Hathaway) Stock Portfolio – Update 2014 Q3

 

Warren Buffett’s Berkshire Hathaway stock holdings for Q3 2014 was filed on 11/14/2014. There was quite a bit of activity this past quarter with a new holdings in ESRX. There were additions made to CHTR, DTV, GM, IBM, MA, PCP, SU, TMK, VIAB, LBTYA, V, and WMT. Reductions were made to BK, COP, NOV, and PSX. The stake in DE was eliminated. The filing is for the quarter ended of 9/30/2014:

 

Berkshire’s New Stock Holdings:

– Berkshire initiated a new stake in Express Scripts Holding Co [ESRX] by buying 449,489 shares. On 9/30/2014, the total of Berkshire’s holding had a market value of approximately $31.75 million ($31,747,000).

 

* * *

Berkshire’s Stock Additions:

– Berkshire increased its stake in Charter Communications Inc [CHTR] by 2,641,083 shares (114.38%) up from 2,309,013 shares, bringing its total to 4,950,096 shares. On 9/30/2014, the total of Berkshire’s holding had a market value of approximately $749.3 million ($749,296,000).
– During Q2 2014, CHTR was a new holding. On 6/30/2014, the total of Berkshire’s holding had a market value of approximately $365.7 million ($365,701,000).

 

– Berkshire decreased its stake in DIRECTV [DTV] by 6,532,005 shares (27.83%) up from 23,467,995 shares, bringing its total to 30,000,000 shares. On 9/30/2014, the total of Berkshire’s holding had a market value of approximately $2.6 billion ($2,595,600,000).
– During Q2 2014, Berkshire decreased its stake by -11,046,705 shares (-32.01%) down from 34,514,700 shares, bringing its total to 23,467,995 shares. On 6/30/2014, the total of Berkshire’s holding had a market value of approximately $2. billion ($1,995,014,000).
– During Q1 2014, 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.

 

– Berkshire increased its stake in General Motors [GM] by 7,039,944 shares (21.36%) up from 32,960,056 shares, bringing its total to 40,000,000 shares. On 9/30/2014, the total of Berkshire’s holding had a market value of approximately $1.28 billion ($1,277,600,000).
– During Q2 2014, Berkshire increased its stake by 2,960,056 shares (9.87%) up from 30,000,000 shares, bringing its total to 32,960,056 shares. On 6/30/2014, the total of Berkshire’s holding had a market value of approximately $1.2 billion ($1,196,451,000).
– During Q1 2014, 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).

 

– Berkshire increased its stake in International Business Machines [IBM] by 304,034 shares (0.43%) up from 70,173,978 shares, bringing its total to 70,478,012 shares. On 9/30/2014, the total of Berkshire’s holding had a market value of approximately $13.38 billion ($13,378,840,000).
– During Q2 2014, Berkshire increased its stake by 1,818,894 shares (2.66%) up from 68,355,084 shares, bringing its total to 70,173,978 shares. On 6/30/2014, the total of Berkshire’s holding had a market value of approximately $12.72 billion ($12,720,437,000).
– During Q1 2014, 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.

 

– Berkshire increased its stake in Liberty Global PLC [LBTYA] (Class A shares) by 534,461 shares (5.42%) up from 9,866,546 shares, bringing its total to 10,401,007 shares. On 9/30/2014, the total of Berkshire’s holding of the international cable company had a market value of approximately $442.46 million ($442,459,000).
– On 9/30/2014, the total of Berkshire’s holding in Liberty Global PLC (Class A and C combined) had a market value of approximately $743.8 million ($743,795,000).
– During Q2 2014, Berkshire increased its stake in the Class A shares by 2,519,578 shares (34.29%) up from 7,346,968 shares, bringing its total to 9,866,546 shares. On 6/30/2014, the total of Berkshire’s holding had a market value of approximately $436.3 million ($436,299,000).
– During Q1 2014, Berkshire increased its stake in the 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 Q1 2014, Berkshire had also received a new stake in Liberty Global PLC (Class C Shares) [LBTYK], 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 2014, 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 (as mentioned above).
– 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).

 

– Berkshire increased its stake in Mastercard Inc [MA] by 665,400 shares (16.43%) up from 4,050,000 shares, bringing its total to 4,715,400 shares. On 9/30/2014, the total of Berkshire’s holding had a market value of approximately $348.56 million ($348,562,000).
– During Q1 2014, Berkshire’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).

 

– Berkshire increased its stake in Precision Castparts Corp. (PCP) [PCP] by 205,600 shares (10.96%) up from 1,876,622 shares, bringing its total to 2,082,222 shares. On 9/30/2014, the total of Berkshire’s holding had a market value of approximately $493.24 million ($493,237,000).
– During Q2 2014, Berkshire decreased its stake by -100,714 shares (-5.09%) down from 1,977,336 shares, bringing its total to 1,876,622 shares. On 6/30/2014, the total of Berkshire’s holding had a market value of approximately $473.66 million ($473,659,000).

 

– Berkshire increased its stake in Suncor Energy [SU] by 2,019,400 shares (12.27%) up from 16,458,330 shares, bringing its total to 18,477,730 shares. On 9/30/2014, the total of Berkshire’s holding had a market value of approximately $667.97 million ($667,970,000).
– During Q2 2014, Berkshire increased its holdings by 3,458,330 shares (26.6%) up from 13,000,000 shares, bringing its total to 16,458,330 shares. On 6/30/2014, the total of Berkshire’s holding had a market value of approximately $701.62 million ($701,619,000).

 

– Berkshire increased its stake in Torchmark Corp [TMK] by 2,117,909 shares (50.%) up from 4,235,818 shares, bringing its total to 6,353,727 shares. On 9/30/2014, the total of Berkshire’s holding had a market value of approximately $332.75 million ($332,745,000).

 

– Berkshire increased its stake in Viacom Inc [VIAB] by 101,000 shares (1.33%) up from 7,607,200 shares, bringing its total to 7,708,200 shares. On 9/30/2014, the total of Berkshire’s holding had a market value of approximately $593.07 million ($593,069,000).

 

– Berkshire increased its stake in Visa Inc [V] by 346,541 shares (19.25%) up from 1,799,749 shares, bringing its total to 2,146,290 shares. On 9/30/2014, the total of Berkshire’s holding had a market value of approximately $457.95 million ($457,954,000).
– During Q2 2014, Berkshire increased its holdings by 244,290 shares (15.71%) up from 1,555,459 shares, bringing its total to 1,799,749 shares. On 6/30/2014, the total of Berkshire’s holding had a market value of approximately $379.23 million ($379,225,000).

 

– Berkshire increased its stake in stake in Wal-Mart Stores Inc [WMT] by 1,588,034 shares (2.7%) up from 58,797,259 shares, bringing its total to 60,385,293 shares. On 9/30/2014, the total of Berkshire’s holding had a market value of approximately $4.62 billion ($4,617,663,000).
– During Q2 2014, Berkshire increased its holdings by 744,847 shares (1.28%) up from 58,052,412 shares, bringing its total to 58,797,259 shares. On 6/30/2014, the total of Berkshire’s holding had a market value of approximately $4.41 billion ($4,413,910,000).
– During Q1 2014, 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.

 

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Berkshire’s Stock Reductions:

– Berkshire decreased its stake in Bank of New York Mellon Corp. [BK] by -1,275,233 shares (-5.17%) down from 24,652,836 shares, bringing its total to 23,377,603 shares. On 9/30/2014, the total of Berkshire’s holding had a market value of approximately $905.41 million ($905,413,000).

 

– Berkshire decreased its stake in ConocoPhillips [COP] by -883,234 shares (-65.17%) down from 1,355,228 shares, bringing its total to 471,994 shares. On 9/30/2014, the total of Berkshire’s holding had a market value of approximately $36.12 million ($36,117,000).
– During Q2 2014, Berkshire decreased its stake by -9,724,730 shares (-87.77%) down from 11,079,958 shares, bringing its total to 1,355,228 shares. On 6/30/2014, the total of Berkshire’s holding had a market value of approximately $116.18 million ($116,184,000).

 

– Berkshire decreased its stake in National Oilwell Varco, Inc. [NOV] by -919,918 shares (-12.6%) down from 7,302,278 shares, bringing its total to 6,382,360 shares. On 9/30/2014, the total of Berkshire’s holding had a market value of approximately $485.7 million ($485,698,000).
– During Q2 2014, Berkshire’s decreased its stake by -1,577,722 shares (-17.77%) down from 8,880,000 shares, bringing its total to 7,302,278 shares. On 6/30/2014, the total of Berkshire’s holding had a market value of approximately $601.34 million ($601,342,000).

 

– Berkshire decreased its stake in Phillips 66 [PSX] by -293,400 shares (-4.52%) down from 6,495,800 shares, bringing its total to 6,202,400 shares. On 9/30/2014, the total of Berkshire’s holding had a market value of approximately $504.32 million ($504,317,000).
– During Q2 2014, Berkshire decreased its holdings by -3,245,503 shares (-33.32%) down from 9,741,303 shares, bringing its total to 6,495,800 shares. On 6/30/2014, the total of Berkshire’s holding had a market value of approximately $522.46 million ($522,457,000).

 

* * *

Berkshire’s Stock Sell Offs:

– Berkshire eliminated its stake in Deere & Company (John Deere) [DE] by selling all of its 3,978,767 shares (-100%).
– During Q3 2012, a new stake was initiated in the maker of agricultural and construction equipment & parts. A total of 3,978,767 shares of Deere & Company were purchased in the third quarter of 2012, and was worth approximately $328 million ($328,129,000) as of 9/30/2012.

 

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Other Updates:

– Although Berkshire did not increase it’s stake in DaVita Inc [DVA] during Q3 2014 period (ending 9/30/2014), an SEC filing on 11/12/2014 showed that Berkshire added to it several times shortly after the Q3 2014 filing was made, and purchased shares from 11/7/2014 – 11/10/2014. These shares will show up on the Q4 2014 filing. Between 11/7/2014 – 11/10/2014, Berkshire increased its stake in DaVita Inc by 944,418 shares (2.51%) up from 37,621,152 shares, bringing its total to 38,565,570 shares. On 11/14/2014, the total of Berkshire’s holding had a market value of approximately $2.92 billion ($2,917,871,026). This has been the ninth time in the last ten quarters that it had purchased shares of DVA.
– During Q1 2014, 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).
– 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.

 

– Berkshire received 8,000,000 Series C common of shares of Liberty Media Corp [LMCK] on July 7, 2014 for it’s 4,000,000 Series A shares held. On 9/30/2014, the total of Berkshire’s holding in the company had a market value of approximately $564.64 million ($564,640,000).
– “Liberty Media Corporation issued shares of its Series C common stock to holders of its Series A and Series B common stock by means of a dividend. Holders of Series A and Series B common stock as of 5:00 p.m. E.D.T. time on July 7, 2014, the record date for the dividend, received a dividend of two shares of Series C common stock for each share of Series A or Series B common stock held by them as of the record date.”
– During Q2 2014, Berkshire decreased its stake in Liberty Media Corp [LMCA] by -1,300,000 shares (-24.53%) down from 5,300,000 shares, bringing its total to 4,000,000 shares. On 6/30/2014, the total of Berkshire’s holding had a market value of approximately $546.72 million ($546,720,000).
– During Q4 2013, Berkshire decreased its holdings by -322,340 shares (-5.73%) down from 5,622,340 shares, bringing its total to 5,300,000 shares. On 12/31/2013, the total of Berkshire’s holding had a market value of approximately $775.35 million ($775,347,000).
– During Q1 2013, Starz Inc [STRZA] was a new holding and entry in the SEC filing. It 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. Subsequently, during Q1 2014, the holdings in Starz was eliminated. Berkshire sold off all 1,919,541 shares of STRZA, which had a market value of approximately $61.9 million ($61,963,000) in the preceding quarter (Q4 2013) .
– During Q4 2012 Berkshire increased its stake in LMCA by 122,340 shares (2.24%), bringing it up from 5,500,000 shares to a total of 5,622,340 shares
– In Q2 2012, Berkshire increased its stake by 2,500,000 shares (83%) from 3,000,000 shares to 5,500,000 shares.
– During Q1 2012 its was increased stake by 1,298,600 shares (76%).
– Liberty Media was a new holding in Q4 2011.

 

***

 

Buffett, Combs, Weschler:

– During the second quarter of 2012 Buffett announced that 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.
– 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 BK, 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 11/14/2014 SEC filing which discloses Berkshire Hathaway stock holdings here:
http://www.sec.gov/Archives/edgar/data/1067983/000095012314012218/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] and DVA, 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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