Warren Buffett Sells Shares In Two Banks & Increases Bet On Bank Of America

In its filings to the Securities and Exchange Commission made on Monday, Berkshire Hathaway provided a detailed update of the company’s quarterly holdings.

The report suggests that Berkshire Hathaway has recommitted to its favorite bank, Bank Of America, and also that the company has decided on two other banks as a part of the changes that are made in the stock portfolio of the company.

Regarded as one the greatest and most successful investors, many people who wish to make an investment closely follow the moves of Warren Buffett, who is the current chairperson of Berkshire Hathaway.

The major reason behind this trend is the impressive and successful investment record that Buffet has over the years.

Warren Buffett

The report submitted to the Securities and Exchange Commission by Berkshire Hathaway suggests that the investment company has decided to make an increase in the investment made by the company in the shares of Bank of America to around $179.4 million at the same time, deciding to drop their long-standing investments in US Bancorp and also the Bank of New York Mellon.

Warren Buffett has eliminated a number of other investments that his company had made in other banks but even amid these, the company continued to extend its support to Bank of America.

Recently, there were different reports that stated that Berkshire has also picked up its shares of Capital One stock. The overall value of the stocks picked up by the company is estimated to be nearly $10 million. 

While the report submitted to the Securities and Exchange Commission talks about the different changes that had been made regarding the investments of Berkshire Hathaway, the report does not include the details about the person who made the changes and the investments.

As the report does not identify the person who made which investment, the one made by Buffet is unclear as of now. Chances are there that the changes could also be made by the other two investment managers of Berkshire Hathaway.

Normally, it is Warren Buffett who handles the company’s big investments that are valued at more than $1 billion. Even though he is the current chairman of the company, Buffet usually does not comment on the stock filings. 

It should also be noted that the report submitted by Berkshire does not mention one of the biggest investment moves made by the company in the recent year.

The company decided to sell more than half of its stake in the Chinese electric carmaker BYD, which according to reports has contributed millions in profit to Berkshire Hathaway. The report regarding the deals with the company is reported separately to the Hong Kong stock exchange.

The last update shared by Berkshire Hathaway showed that the company held around 108 million shares of the electric car manufacturer BYD and the value of the shares held by Berkshire was estimated to be around $3.3 billion. 

Until August 2022, Berkshire held around 225 million shares of BYD that the company bought in 2008. Berkshire spent around $232 million on the purchase of these shares in 2008. 

Berkshire also surprised everyone through another big move of selling around 35 million shares of Chevron, which left the company with around 132.4 million shares remaining. The move of the company to sell the hares of the oil producer was revealed in the quarterly earning report of the company. 

Berkshire Hathaway made one of the biggest purchases of the company recently when it bought stocks of Occidental Petroleum. The purchase of the stocks has cost the company around a billion dollars.

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The company also bought another 17.4 million shares of Occidental Petroleum during the quarter and with the second purchase, the company now opens around 24% of the oil producers’ stocks, which is also around 211.7 million shares of the company.

It is interesting to note that Berkshire Hathaway also holds the warranty that will allow the company to buy around 83.9 million shares of Occidental Petroleum but during the annual shareholders meeting of Berkshire, Warren Buffett made it clear that he had no intention of buying the whole company. 

While looking at the eliminations made by Berkshire Hathaway in recent times, the one involving the chipmaker Taiwan Semiconductors is one of the most prominent ones. Berkshire bought around 60 million shares in the company last fall.

When asked about the sudden change in his decision, Buffet stated that the rethinking was based on geopolitical concerns regarding China. The biggest single investment of the company in Apple shares has also remained unchanged.

Currently, Berkshire owns around 915.6 million shares in Apple and along with this, the company also made a deal with HP, where another 16.5 million shares of the company were picked up by Berkshire which currently mounts up to around 121 million shares of the printmaker to Buffet and his company. 

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