Warren Buffett went wild with Berkshire Hathaway’s ( BRK.B , $309.29) checkbook during the first quarter, scooping up equities at his fastest pace since the Great Financial Crisis.

True, it took an epically bad start to the year for stocks and the worst inflation in four decades to lure Berkshire’s chairman and chief executive back into the market.

But he’s back, and in a big way.

The Berkshire Hathaway equity portfolio scooped up $41.5 billion in net stock purchases in the first quarter. That’s the most cash Buffett has splurged on equities in a quarter since 2008.

Contrast that with last year, when Berkshire was a net seller of equities in all four quarters of 2021.

In addition to spending another $3.2 billion buying back BRK.B shares and acquiring insurer Alleghany outright for $11.6 billion , Buffett and his lieutenants Ted Weschler and Todd Combs found plenty of other ways to make a serious dent in the conglomerate’s cash pile.

Among the more notable moves, Buffett deployed serious financial resources into the energy sector in Q1, taking advantage of both rising oil prices and crude’s properties as an inflation hedge. Elsewhere, Apple’s ( AAPL ) Q1 stock skid prompted Buffett to add about $600 million to Berkshire’s top holding.

And, of course, we all remember that Buffett bought a commanding 11.4% stake in PC and printer maker HP ( HPQ ).

We know what the greatest long-term investor of all time has been up to because the U.S. Securities and Exchange Commission requires investment managers with at least $100 million in assets to file a Form 13F quarterly report disclosing changes in share ownership. These documents add an important level of transparency to the stock market and give Buffett-ologists a bead on what the Berkshire chief is thinking.

When Buffett initiates a stake in some company, or adds to an existing one, investors read into that as a vote of confidence. But if he pares his holdings in a stock, it can spark investors to rethink their own investments.

Here’s the scorecard for what Warren Buffett was buying and selling during the first quarter of 2022, based on Berkshire Hathaway’s 13F filed on May 16, 2022, for the period ended March 31, 2022. You can check out the entire list of Buffett stocks here , or continue reading if you’re most interested in Buffett’s most recent transactions.

And remember: Not all “Warren Buffett stocks” are actually his picks. Some of Berkshire Hathaway’s positions are handled by portfolio co-managers Weschler and Combs.

Current share prices are as of May 16, 2022. Holdings data is as of March 31, 2022. Sources: Berkshire Hathaway’s SEC Form 13F filed May 16, 2022, for the reporting period ended March 31, 2022; and WhaleWisdom. Kroger

Action: Reduced stake

Shares held: 57,985,263 (-5% from Q4 2021)

Value of stake: $3,326,615,000

Warren Buffett once again reduced Berkshire Hathaway’s exposure to one of his more recent favorite stock picks in Q1. The holding company shed 3.4 million shares, or 5% of its stake, in supermarket operator Kroger ( KR , $53.20).

The move followed another slight reduction in Q4, when Berkshire pared the stake by 350,000 shares, or less than 0.01%.

Kroger operates roughly 2,750 retail food stores operating under such banners as Dillons, Ralphs, Harris Teeter and its namesake brand, as well as 1,585 gas stations and even 170 jewelry stores under banners including Fred Meyer Jewelers and Littman Jewelers.Buffett first bought the consumer staples play in the fourth quarter of 2019 and quickly built on the position over the following two years. Shares are up by 120% on a total return basis since Oct. 1, 2019, vs. a total return of 43% for the S&P 500.More impressively, KR generated a total return of 27% for the year-to-date through March 31 – a period during which the broader market’s total return came to -4.6%.Perhaps Buffett was content to take a little off the top of what has been a winning position in an otherwise dismal year for equities.The KR position now accounts for 0.8% of Berkshire’s portfolio value, down from 0.9% at the end of 2021. Store Capital Action: Reduced stake Shares held: 14,754,811 (-39% from Q4 2021) Value of stake: $431,283,000 Berkshire slashed its position in Store Capital ( STOR , $27.35) by 39%, or 9.7 million shares in Q1.The position, which Berkshire initiated in the summer of 2017, was always something of an unusual one. Real estate investment trusts (REITs) – a way to invest in real estate without owning the actual assets – have never been big […]

source 15 Stocks Warren Buffett Is Buying (And 7 He’s Selling)

editor Stocks , , ,

Leave a Reply