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Berkshire Sold Close to $10 Billion Worth of Stocks During Q4

Taiwan Semiconductor, U.S. Bancorp, and Bank of New York Mellon stock accounted for most of the reductions in the company’s portfolio.

Greggory Warren, CFA 16 February, 2023 | 4:28AM
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Berkshire Hathaway

Wide-moat Berkshire Hathaway BRK.B reported a relatively busy fourth quarter for its equity investment portfolio, with net sales (exclusive of purchases) coming in at an estimated $9.7 billion based on the insurer’s 13-F filing (as well as a similar filing for New England Asset Management, which managed $5.4 billion of equities for Berkshire at the end of December).

The biggest reductions on an absolute basis from the combined portfolios came from sales of Taiwan Semiconductor TSM (with Berkshire eliminating 51.8 million shares, or 86% of its holdings, for an estimated $3.7 billion), U.S. Bancorp USB (86.1 million shares, or 91% of its holdings, for an estimated $3.6 billion), and Bank of New York Mellon BK (37.4 million shares, or 60% of its holdings, for an estimated $1.6 billion).

Other activity included the trimming of stakes in Activision Blizzard ATVI (7.4 million shares for an estimated $560 million), Chevron (2.4 million shares for an estimated $390 million), and McKesson MCK (0.3 million shares for an estimated $120 million). Berkshire and NEAM raised another estimated $180 million reducing stakes in more than 40 smaller holdings, while the elimination of stakes in more than 60 other small holdings raised another $20 million.

Missing from the filings is Berkshire’s sale of shares in BYD Company BYDDY, the Chinese electric car maker. Since August of last year, the insurer has sold off more than one third of the 20.5% stake it has held since 2008, with the sale of another 4.2. million shares earlier this month, lowering its stake in BYD to around 12%.

Around $415 million of the proceeds generated during the fourth quarter were directed to stock purchases focused primarily on enhancing stakes in existing stock and ETF holdings. There were, however, three new money purchases during the period: KeyCorp KEY (0.3 million shares for an estimated $5 million), AT&T T (0.3 million shares for an estimated $5 million), and Alphabet Class A GOOGL (17,100 shares for an estimated $1.6 million).

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Activision Blizzard Inc79.34 USD0.44Rating
Alphabet Inc Class A101.22 USD-0.39Rating
Bank of New York Mellon Corp43.27 USD1.62Rating
Berkshire Hathaway Inc Class B301.06 USD2.57Rating
BYD Co Ltd ADR51.31 USD-0.37
KeyCorp11.67 USD1.21Rating
McKesson Corp345.25 USD1.74Rating
Taiwan Semiconductor Manufacturing Co Ltd ADR90.04 USD0.64Rating
U.S. Bancorp34.45 USD4.55Rating

About Author

Greggory Warren, CFA

Greggory Warren, CFA  Greggory Warren, CFA, is a financial services sector strategist for Morningstar.

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