Berkshire Eastern time managed by Buffett released its latest form 13F, its position report for the second quarter of 2020, on Aug. 14.
As of the end of the second quarter, Apple Inc is still the largest heavy stock. Data displayBerkshireHold a positionApple Inc's historical average cost is estimated to be $149.26, with a total of 245 million shares. Apple Inc has earned a total of $76 billion for Berkshire.
During the reporting period, BerkshireOnly 1 new companyIncreased its holdings by 4.The companySeven stores were cleared.The company11 companies have reduced their holdings.For the company, the concentration of the top ten shareholdings is87.74%, a further increase over the first quarter (84.24%）。
Specifically, the main changes this time are:
There is only one new company in the second quarter, and the positions of the top five targets remain unchanged.
Berkshire bought 20.92 million shares in the second quarter$Barrick Gold (GOLD.US) $, valued at $563 million, accounting for 0.3% of Berkshire's position, with an estimated average cost of $26.94.
Barrick Gold, a Canadian company, is now the world's largest gold miner, up 46% this year. Companies have also benefited from a surge in the price of gold this year because of a surge in safe-haven demand.
As we all know, Buffett himself has not been very interested in gold, he believes that to do more gold is to do more fear. When people are scared, it's time to make money. The implication is that buying gold is better than buying stocks, because gold itself does not produce anything.
Just like Buffett once said that he would not touch technology stocks and finally chose to take a heavy position in Apple Inc, the law of "true fragrance" is always there, but he will be late.
In additionThe position of Berkshire's top five targets remains the same!It is worth noting that the fifth largest position in the first quarter was Wells Fargo & Co, which ranked seventh after being reduced.Kraft Heinz was promoted to the fifth largest position in the second quarter.
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The top five stocks of Berkshire in the second quarter are as follows:
Apple Inc, Bank of America Corporation, Coca-Cola Company, American Express Co and Kraft Heinz accounted for 44.18%, 10.85%, 8.83%, 7.13% and 5.13% of the total positions respectively, and the total position ratio of the top five major stocks was about 76.12% (Q1 = 69.2%).
Only two of the top five companies have risen so far this year, with Apple Inc up 57.6% and Kraft Heinz up 14.15%:
Buffett is still cautious, adding only four companies.
Although there was no frenzied bottoming, Berkshire increased its holdings of four companies in the second quarter:$Liberty SiriusXM Series C (LSXMK.US) $、$Kroger (KR.US) $、$STORE Capital Corp. (STOR.US) $、$Senke Energy (SU.US) $。
All four companies have a small share of Berkshire's positions, all less than 1% and 16th and later. The largest scale of this increase is$Liberty SiriusXM Series C (LSXMK.US) $The company is down 25% this year.
According to public information, Liberty Media Corporation is one of the six largest media groups in the world. Mainly engaged in media, communications and entertainment in North America through its subsidiaries.
Read more:What about Berkshire's purchase of the LSXMK it sold two months ago for about $65.66 million?
Berkshire has bought Kroger since Q4 in 2019 and increased its holdings in the first quarter, up 24% for the year.With the exception of Kroger, the other three companies in which Q2 Berkshire increased its positions closed down this year.
Kroger is the third largest retail group in the United States after Walmart Inc and The Home Depot Inc. Kroger has invested heavily to expand online business, upgrade stores, improve the quality of delivery, and actively compete with Walmart Inc supermarket and Amazon.Com Inc.
Buffett cut meat and cleared aviation stocks, seven companies were kicked out.
At Berkshire's shareholders' meeting in early May, Buffett said the future was blurred and that it was time to bet cautiously.
For two consecutive quarters this year, we have seen quite rare large-scale liquidations of Berkshire.
At the annual general meeting in early May, Buffett said he had liquidated all airline stocks, includingSouthwest Airlines (LUV.US) $、United Continental Airlines (UAL.US) $、$Delta Airlines (DAL.US) $、American Airlines (AAL.US) $. It is worth noting that Buffett increased his stake in Delta Airlines in February, saying that the epidemic did not affect judgment.
When we sell something, usually all of our shares, we will not reduce our positions.
Previously, aviation stocks were a major investment focus for Berkshire, which was the largest shareholder in Delta, the second largest shareholder in United Airlines and Southwest Airlines, and the third shareholder in American Airlines Group. In mid-March, Buffett also insisted that "airline shares will not be sold."
Buffett admitted at the meeting in May that he had misjudged aviation stocks and that it was now risky to invest.
In addition to cutting meat and clearing airline stocks, Berkshire also cleared financial giants.$Goldman Sachs Group (GS.US) $Canadian Food and Beverage Company$Restaurant Brands International (QSR.US) $, energy company$Western Oil (OXY.US) $。
Goldman Sachs Group suffered three consecutive quarters of reduction, and the Q1 position was cut by 84 per cent in 2020. Goldman Sachs Group dropped by 8.43% during the year.$Anshuo American Regional Bank ETF (IAT.US) $It fell by more than 28% during the year.
The financial sector was "abandoned" as its holdings of 11 companies were reduced.
Berkshire reduced its holdings in 11 companies in the second quarter, involving the financial and communications sectors, of which 8 companies belong to the financial sector.
JPMorgan Chase's position was slashed by 61%, from 57.7 million shares in the first quarter to 22.2 million shares, while Wells Fargo & Co, the seventh largest position, fell to 237.6 million shares from 333.2 million shares in the first quarter, a reduction of 26%.
It is worth mentioning that Berkshire reduced its holdings in the second quarter.$PNC Financial Services Group Inc (PNC.US) $The range is 41% to 5.35 million shares. Berkshire added only two companies in the first quarter of this year, and PNC Financial Services Group Inc is one of them.
Affected by the epidemic, the performance of bank stocks was affected, and the trend was weak during the year, or an important reason why Buffett was selling his once favorite financial sector one after another.
Summary
On the whole, the stock god is still cautious and did not sweep the goods significantly. For the future, Buffett said at the shareholders' meeting.
Maybe I'm a little biased. I don't believe predictions about what the market will be like tomorrow, next week, next month or next year. I know the United States will move forward over time, but I'm not sure. As far as the market is concerned, anything can happen. You can bet in the United States, but you must choose how to bet carefully. That's because anything can happen in the market.
-Buffett
Related readings:Figure 13F | Buffett is no longer greedy, 6 positions are reduced by 15, and Goldman Sachs Group's position is slashed by 84%.
Photo Source: whalewisdom
Author | debby