Warren Buffett stock dealings during the first quarter of 2021, based on Berkshire Hathaway’s 13F filed on May 17, 2021, for the period ended March 31, 2021, could provide investors with a heads up.

But before we dive into Warren Buffett stock dealings, investors will need to keep in mind that not all the legendary value investor’s stock picks are his. Smaller positions are handled by middle-ranking fund managers of Warren Buffett’s Berkshire Hathaway, such as Ted Weschler and Todd Combs.

“Warren Buffett stock dealings during the first quarter of 2021, based on Berkshire Hathaway’s 13F filed on May 17, 2021, for the period ended March 31, 2021, could provide investors with a heads up”

WEALTH TRAINING COMPANY

The crux of Warren Buffett stock dealings during the first quarter of 2021 is that the billionaire’s Berkshire Hathaway fund reduced its stock exposure across an array of sectors from auto, oil and gas, pharmaceuticals, and banks

For example, Warren Buffett stock dealings included a reduced stake in US Bancorp (USB) the US’s fifth-largest bank by assets and America’s biggest regional bank.

Warren Buffett’s Berkshire Hathaway fund reduced its holding in US Bancorp (USB) by 1.1% or or 1.5 million shares, in the first quarter of 2021. The fund currently holds 129,687,084 (-1.1% from Q4 2020) in USB with a value of stake at $7.2 billion.

US Bancorp is the oldest Buffett stock in the Berkshire Hathaway portfolio; the Oracle of Omaha initiated his position in the first quarter of 2006. 

Warren Buffett is notoriously muted about U.S. Bancorp, and rarely changes his holding in the stock. However, the Berkshire Hathaway fund’s reduction it by 1.1% in the first quarter of 2021 followed a trimming of 0.6%, or a mere 823,834 shares, in Q4 2020.

“Warren Buffett’s Berkshire Hathaway fund reduced its holding in US Bancorp (USB) by 1.1% or or 1.5 million shares, in the first quarter of 2021”

WEALTH TRAINING COMPANY

Warren Buffett stock dealings also revealed a reduced stake in General Motors (GM) to 67,000,000 (-7.6% from Q4 2020)

The value of the Stake in GM is $3.8 billion. 

Warren Buffett took a stake in the US automaker, GM in early 2012. And over the past few years, he became even more bullish, upping Berkshire Hathaway’s holdings in 2018, 2019, and as recently as Q3 2020.

Warren Buffett stock dealings, which entailed a reduction in holdings in a large domestic auto raises a question that a number of auto investors have been pondering over for some time; has demand for autos reached a peak? The need to travel to work is reduced in a digitalized world. Moreover, the electrification of smart autonomous vehicles could mean families need only one car. 

So, Warren Buffett decided to not only slow down his purchases in GM but reduce it by 7.6%, or 5.5 million shares, in the first three months of 2021. That follows a cut of 9%, or 7.5 million shares, during the final quarter of 2020.

“On valuation, GM shares appear favorably valued based on most standard valuation metrics” – Wealth Training Company

GM stock price has appreciated by150% over the past 52 weeks, so maybe Warren Buffett fund managers thought it was time to take a little more off the top of a profitable investment – even if analysts still like the valuation and potential for a resumption of income. 

“On valuation, GM shares appear favorably valued based on most standard valuation metrics” writes Argus Research analyst Bill Selesky, who rates GM at Buy. “We also expect the company to soon reinstate its dividend”.

Warren Buffett stock dealings in the first quarter of 2021 also show a reduced stake in several pharmaceutical companies

Berkshire Hathaway cut its position by more than 10%, or 2.7 million shares in ABBV now account for 0.9% of Berkshire’s equity portfolio, down from 1.0% at the end of Q4.

ABBV is a pharma giant best known for blockbuster drugs such as Humira and Imbruvica, but analysts are also optimistic about the potential for Rinvoq and Skyrizi, which treat rheumatoid arthritis and plaque psoriasis. 

Warren Buffett stock dealings also revealed a reduced stake in Merk

The pharmaceutical giant is a relatively new addition to the Berkshire Hathaway portfolio and a component of the Dow Jones Industrial Average. The fund’s Shares held in Merk is 17,882,388 (-37.7% from Q4 2020), which represents a $1.4 billion stake.

But one of Warren Buffett stock dealings with the largest reduction was Chevron.

Berkshire jettisoned a little more than half of the position in Q1 2020, unloading 24.8 million shares in Chevron CVX to bring the position down to 23.7 million. Chevron makes up 0.9% of the portfolio and is still in a top-15 position. But Berkshire does drop from being the firm’s fifth-biggest shareholder to No. 10. 

“The mass electrification of transport could be powered by nuclear fuels” – Wealth Training Company

Warren Buffett’s Berkshire Hathaway stake currently amounts to $2.5 billion, and his significant reduction in Chevron underscores the movement away from fossil fuel energies

The mass electrification of transport could be powered by nuclear fuels. 

Bill Gates and Warren Buffett have moved to launch the primary Natrium nuclear reactor mission on the location of a former coal energy plant.

Warren Buffett stock dealings could point to some early profit taking

Although the Funds reduced stake in Chevron could also suggest the funds movement away from fossil fuel energies.

The alternative energy favored by Warren Buffett appears to be nuclear fuel

Investors tend to closely watch Warren Buffett stock dealings for signs of investor trend changes and investment ideas.

Warren Buffett is considered a value investing legend with impressive track record. Berkshire Hathaway (brk.a) total return is 2404748% vs S&P 500 return 15000% from 1964 to 2017. Birkshire has generated 21% market return whereas S&P 500 return was 10% during this time period.  

Investors can check the entire Warren Buffett stock dealings here.