Berkshire Hathaway
For close to six decades, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) Chief Executive Officer Warren Buffett has been outperforming Wall Street’s major stock indexes in terms of returns. Since the mid-1960s (when Buffett took charge as Berkshire CEO), the wide-ranging S&P 500 has generated a total return, including dividends paid, of approximately 33,700%. Contrasted with Berkshire Hathaway’s Class A shares (BRK.A), which have surged by about 5,075,000% under the warmly named “Oracle of Omaha.”
Following the Oracle’s lead has been a lucrative journey for many years, made simple thanks to Form 13F filings with the Securities and Exchange Commission. A 13F is a mandated quarterly filing for institutional investors with at least $100 million in assets under management, presenting an in-depth snapshot of their recent purchases, sales, and holdings.
Berkshire Hathaway Chief Executive Officer Warren Buffett. Image source: The Motley Fool.
Between Berkshire’s most recent 13F disclosure and the firm’s yearly earnings report, it’s evident that Warren Buffett intends to divest from two prominent companies within Berkshire Hathaway’s $368 billion investment portfolio. Simultaneously, there are two tried-and-tested companies that the Oracle of Omaha cannot seem to stop acquiring.
Warren Buffett and his team are probably offloading two notable company holdings
One of Buffett’s essential investment characteristics is his element of predictability. Whenever he perceives a company as a valuable investment opportunity, he and his team typically accumulate a stake in that company over numerous quarters and retain that position for years or even decades.
The converse is also factual. If he, along with his investment associates Ted Weschler and Todd Combs, loses faith in a company, they promptly reduce their holdings over a few quarters. This is what appears to be happening currently with two equities that seem to be on the verge of exiting Berkshire Hathaway’s investment portfolio: Media firm Paramount Global (NASDAQ: PARA) and personal-computing and printing-solutions specialist HP (NYSE: HPQ).
Continuation of the story
The disposal of over 30.4 million shares of Paramount Global by Buffett’s company in the quarter ending in December is a clear indicator that the remaining 63.3 million shares held will be divested at some point in the…
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