What Warren Buffett bought and sold in Q3
Buffett-led Berkshire bought about 60 million shares of Taiwan Semiconductor worth more than $4.1 billion, according to Berkshire’s latest 13F report filed late Monday, tracked by www.whawwisdom.com.
In October, Taiwan Semi, also known as TSMC, the world’s largest contract chip manufacturer, delivered a strong third quarter, despite weakness in the chip sector. TSM stock rose 9.6% to 80.89 on stock market todayextended last week’s rally above the 50-day moving average.
Besides Taiwan Semi, Berkshire Hathaway opened a position at Louisiana Pacific (LPX) and Jefferies Financial Group (JEF) in the Q3 bear market. Berkshire bought 5.8 million shares of Louisiana Pacific, a maker of engineered wood building products, for nearly $297 million. It bought about 433,000 shares of Jefferies Financial Group, a global investment banking and capital markets firm, for $12.8 million.
LPX stock spiked 9.7% to 64.54 on Tuesday, breaking above the 200-day moving average. JEF shares rose 2.9% to 37.91 on Tuesday.
During the third quarter, Berkshire increased its existing shares in several stocks: in Random oil and gas (OXY) increased by 22%; global supreme (PARA) increased by 16%; RH (RH), formerly Recovery Hardware, up 8%; Celtic language (CE) increased by 6%; and letter V (CVX) equal 2%. This group purchased an additional 35.8 million shares of OXY, 12.8 million shares of PARA and 3.9 million shares of CVX.
While leaving Store Capital last quarter, Berkshire reduced its current holdings in several stocks: in Bancorp USA (USB) equals 55%; Bank of New York Mellon (bk) increased by 14%; Activating blizzard (ATVI) increased by 12%; common engine (GM) increase by 5%; and grocery (KR) increased by 4%.
On September 15, Store Capital, a real estate investment trust or REIT, announced that it will be joined by GIC, a global institutional investor and Oak Street-owned fund, acquired in an all-cash deal valued at $14 billion.
The Berkshire’s third quarter earnings report 5 disclosed that Buffett was a net buy of stocks, including OXY stock, during the volatile third quarter. But investors have been waiting for the 13F filing, which arrives Monday after the market closes, to learn more about the stocks Buffett bought and sold last quarter.
The S&P 500 ended the third quarter in bear market territory for the second straight quarter.
Top Berkshire Hathaway Stocks
During the third quarter, Berkshire held some of the top stocks in Warren Buffett’s Dow-Heavy Portfolio stable, according to 13F filing late Monday.
The group’s top shares held by market value are Apple (AAPL), with shares worth a whopping $123.66 billion at the end of September. But american bank (NORTH) is the #1 stock by number of shares held, with AAPL stock at #2 by that metric. Add Doa, American Express (AXP), Coca-Cola (KO) and Kraft Heinz (DIFFERENT) counted in Buffett’s largest holdings by number of shares.
A smaller but notable organization is Amazon (AMZN). Berkshire maintained the positions in each of these shares for the previous quarter.
Warren Buffett has a long track record of beating the market with his picks. The head of Berkshire has earned a reputation as a buy-and-hold investor, holding stocks for years or even decades. For example, the company has held AAPL stock since Q1 2016 and KO stock since Q1 2001.
Investors keep an eye on Berkshire’s 13F filing to see where the investing legend is putting his money in the stock market. A new stock purchase by Warren Buffett can send that company’s stock soaring.
In the third quarter, Warren Buffett’s stock purchases exceeded stock sales by $3.7 billion, including $2 billion invested in OXY stock. Berkshire Hathaway also bought back $1.05 billion of its own stock.
Amid the volatility of the third quarter, Berkshire recorded a loss of $10.5 billion on equity investments. Meanwhile, its cash hoard grew from $105.4 billion at the end of June to $109 billion at the end of September.
So far in 2022, Berkshire has ramped up its investment activity. Notably, it increased its energy bets after Russia’s invasion of Ukraine on February 24, disrupting global oil and gas supplies. In 2021, Berkshire Hathaway mainly plays defensively when the stock market goes higher.
Class B shares of Berkshire stock rose 1.4% to 313.07 on stock market today. Apple shares rose 3.2% to 153.02.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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