For investors, it may be possible to have a mouthful of gravy to follow an investment mogul like Buffett to learn about his announced quarterly positions.
Jiancang
Although Buffett and his investors did not establish new positions in the second quarter, they increased their holdings of nine existing investments.
Of the nine companies Buffett increased his holdings, the most eye-catching, of course, is Apple Inc, because Buffett has always been cautious about technology stocks, but nowApple Inc became the largest stock in Berkshire Hathaway.In additionApple Inc's market capitalization exceeded 1 trillion, Buffett made a crazy profit of 5.8 billion US dollars in one month.It has attracted the attention of many investors.
Another thing that attracted the attention of investors was that Buffett invested nearly $1.2 billion in three banks (U.S. Bancorp, Bank of New York Mellon and Goldman Sachs Group). Berkshire Hathaway bought Goldman Sachs Group shares after the collapse of Lehman Brothers in 2008, a sign of Buffett's confidence in investment banking. Buffett thinks U.S. Bancorp and Bank of New York Mellon are the two best banks in the United States. But the banking sector has not performed well this year, with Goldman Sachs Group's share price down nearly 10 per cent so far this year.
Buffett has always been bitter about airlines. Buffett had a heavy position in US Airways in 1989 (the company was formally incorporated into American Airlines in 2015, making it the largest airline in the United States and the world). At that time, Buffett spent a huge amount of $360 million on US Airways preferred stock, but as soon as it entered the market, the stock began to fall, and by 1995, the net worth of the investment had fallen to $89.5 million.
At this point, Buffett is not optimistic about aviation stocks. Although Buffett's construction of Delta Airlines and Southwest Airlines surprised market participants, it also makes sense to a certain extent: the US aviation industry is sitting on the world's largest civil aviation market, accounting for about 1/3 of the global share. The top three airlines in the world are all located in the United States, and these two airlines are in the top three in terms of passenger volume and mileage. At the same time, the period of substantial expansion of capital expenditure in the US aviation industry has passed, and then it has entered a "mature and stable period". The tight monopoly market and the consequent high ticket prices will bring it a steady stream of cash flow.
As for General Motors Co, although the stock price trend of General Motors Co is not very good in recent years, due to the steady rise in global car sales, and General Motors Co is far ahead in hybrid power, it is considered by market participants to be good in the short term.
Teva Pharmaceuticals, which Buffett likes, is a famous multinational pharmaceutical company in the world, which is committed to generic drugs, drug research and development and production. It is one of the top 20 pharmaceutical companies in the world and the largest generic pharmaceutical company in the world. Teva Pharmaceuticals has a considerable market share in the United States, and one out of every six prescription drugs is Teva.
Close the position
Another thing worth watching is Wells Fargo & Co, who was Buffett's number one stock and had a "good heart". Despite Wells Fargo & Co's scandal of opening an open account in 2016, Buffett did not sell a lot of money and said Wells Fargo & Co is still an attractive long-term investment.
In response, Buffett said, "these buying and selling decisions do not reflect our investment management's view of the relevant stocks, but abide by the principle of holding no more than 10% of the shares." "for several companies closing positions, the most noteworthy is Philip 66, Buffett also announced that it will hold for a long time, and now the substantial reduction does have a big impact on the market.
It is true that Charter Communications Inc, who was sold by Buffett, has not performed satisfactorily in recent years, with the share price falling nearly 30 per cent from a peak of $396.64 to a low of $250.1 so far this year.
Source: Futu Securities