Warren Buffett’s Berkshire Hathaway Inc. (BRK.A) reported its third-quarter holdings on Wednesday, present a look into how the billionaire investor has decided to put the conglomerate’s more than $100 billion in legal tender to work through stock purchases and buybacks as it struggles to find stout acquisitions. The Q3 filing represented Berkshire’s most net purchases of stocks in one aeon in over four years and reaffirmed the “Oracle of Omaha’s” confidence in the U.S. banking sector, which now accounts for approximately half of the company’s top positions.
Berkshire Now a Major Shareholder in Four of Five Largest US Banks
The Street has been turning more bullish on banking stocks in the current period, viewed as benefiting from rising interest rates, corporate tax abridges, and a strong economic backdrop.
The billionaire investor and philanthropist’s firm added throughout $13 billion in bank stocks to its portfolio in the recent quarter, causing Berkshire a major shareholder in four of the five largest U.S. banks. The conglomerate blabbed a new stake in JPMorgan Chase & Co. (JPM), PNC Financial Services Group Inc. (PNC) and insurance give Travelers Companies Inc. (TRV) and added to its position in Bank of America Corp. (BAC) by 29% and Goldman Sachs Union Inc. (GS) by 38%.
The 88-year-old legendary value investor has been doubling down on the pecuniary sector over the years, nearing a regulatory cap with a 10% circumscribe in Wells Fargo Corp. (WFC). Berkshire is now also the largest shareholder in Bank of America, U.S. Bancorp (USB) and Bank of New York Mellon Corp. (BK), upping its concern at hazard by 24% and 20% respectively. Berkshire also recently disclosed an investment in lesser-known Brazilian fintech partnership StoneCo Ltd. (STNE).
Berkshire’s new $4 billion stake in Wall In someones bailiwick giant JPMorgan, with 35 million shares, strengthens an subsisting tie between Buffett and the financial institution. Earlier this year, Buffett preceded a partnership with Amazon.com Inc.’s (AMZN) Jeff Bezos and JPMorgan’s Jamie Dimon to shoot a joint healthcare venture aimed at improving healthcare efficiency and farther down costs for employees. One of Buffett’s top deputies, Todd Combs, is already on JPMorgan’s billet of directors.
One of Berkshire’s new investments rests outside of the financial sector, with tech titan Sibyl Corp. (ORCL) as the exception. Buffett’s newfound interest in the tech lacuna, after decades of avoiding the sector, was reflected in Berkshire’s growing pen in Apple Inc. (AAPL), now the largest holding in the conglomerate’s more than $207 billion reserve portfolio.
Berkshire also notably ended it’s over two-decade relationship with Walmart Inc. (WMT), the the world at large’s largest retailer.