Warren Buffett portfolio tweaks confirm that the legendary value investor, known also as the Oracle of Omaha, has put some of his 150 billion cash mountain accumulated in 2021 to work in 2022.
Indeed the latest 13F filing from Warren Buffett’s Berkshire Hathaway shows $3.8 billion in net stock purchases in the second quarter.
So Warren Buffett portfolio tweaks underscore Berkshire Hathaway’s two consecutive net purchases in the first half of 2022.
The largest net purchase was made in the first quarter of 2022 when Warren Buffett’s fund reportedly bought $41 billion.
“The largest net purchase was made in the first quarter of 2022 when Warren Buffett’s fund reportedly bought $41 billion”
WEALTH TRAINING COMPANY
Warren Buffett portfolio tweaks indicate that the Oracle of Omaha was a net buyer in the first half market carnage of 2022 to the tune of $44.8 US dollars
But don’t be surprised about Warren Buffett going on a buying spree while most investors were panic-selling in the least publicized crash of 2022, which wiped nine trillion dollars off assets across the asset risk spectrum.
While investors were fretting about no place to hide as the bubble of everything popped, Warren Buffett was not hiding, he was buying.
Warren Buffett has a saying about the stock market and investing in general: “Be fearful when others are greedy and greedy when others are fearful.”
Warren Buffett’s buying spree in the first half of 2022 entailed fewer buybacks of Berkshire Hathaway’s stock compared with other periods.
Warren Buffett portfolio tweaks included an increased shareholding in Occidental Petroleum adding 1,597, 604 more shares to the fund from the last quarter.
“While investors were fretting about no place to hide as the bubble of everything popped, Warren Buffett was not hiding, he was buying”
WEALTH TRAINING COMPANY
So is Warren Buffett of the view that higher oil prices are likely to remain?
If the Oracle thought oil prices would collapse to new lows, then his recent filing would show a sizable reduction in the oil company. Instead, we see the contrary.
The post-unipolar world of heightened geopolitical uncertainties is likely to support energy and commodity prices.
“Warren Buffett’s Berkshire exited two companies, Verizon Communications, and Royal Pharma” – Wealth Training Company
Here are a few more Warren Buffett portfolio tweaks that could provide investors and traders with insight into what Warren Buffett is thinking
Warren Buffett’s Berkshire exited two companies, Verizon Communications, and Royal Pharma.
The former is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average. The company offers voice, data, and video services and solutions on its award-winning networks and platforms.
Royal Pharma is a Pharmaceutical Manufacturing company.
Warren Buffett portfolio tweaks included adding holdings in top position Apple (a very modest 0.4%).
Some bearish views on Apple are based on the company exhausting its innovation. Apple has brought nothing new to the market for more than two years.
The accumulation of oil companies’ stocks in Warren Buffett portfolio tweaks is a significant feature in the recent filings
For example, Warren Buffett’s Berkshire added Chevron (1.4%), including Occidental Petroleum (16.3%), as we noted above.
Warren Buffett fund also holds Activision Blizzard (a merger arb which increased by 6.4% to $5.3BN in Q2).
Warren Buffett portfolio tweaks, which entailed further adding to his fund’s holdings included Paramount Global (13.75%). Ally Financial (234.5%) as well as Celanese, McKesson, and Markel.
“Apple remains Berkshire’s largest holding, representing 41% of total disclosed assets” – Wealth Training Company
With the economy in a recession, it is perplexing why Buffett’s greatest addition is Ally Financial.
Financial is usually avoided in a recession, with investors favoring more recession-proof stocks.
Ally Financial is a bank holding company organized in Delaware and headquartered in Detroit, Michigan. The company provides financial services, including car finance, online banking via a direct bank, corporate lending, vehicle insurance, mortgage loans, and an electronic trading platform to trade financial assets.
Warren Buffett portfolio tweaks which entailed the fund decreasing its stakes include U.S. Bancorp (-5.2%), General Motors (-14.8%) Kroger (-9.6%), and Store Capital (-53%)
Despite the latest Warren Buffett portfolio tweaks, the fund remains heavily exposed to Apple stocks
Apple remains Berkshire’s largest holding, representing 41% of total disclosed assets.
What is also interesting is that Warren Buffett’s Berkshire
Disclosed just over $300BN in long, US positions as of June 30, which is a notable decline from the $363BN as of March 31.
Overall, what we can deduce from Warren Buffett portfolio tweaks, is the billionaire investor has added to his net position during the crash of 2022
An indication that the worst is over?
Full details of all Berkshire Q2 moves can be found in the table here.
