Buffett Reduces Apple Holdings by 10 Million Shares: Why the Sudden Move?
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On Wednesday (February 14), Eastern Time, Berkshire Hathaway, led by the 'Oracle of Omaha' Warren Buffett, submitted its latest 13F filing to the SEC.
Overall, according to data platform WhaleWisdom, as of the end of December last year, Berkshire's U.S. stock holdings totaled approximately $347 billion, an increase of about $34 billion from the previous quarter's $313 billion. The top ten holdings accounted for 92.92%, with Apple making up 50.19%.
Additionally, in the fourth quarter of last year, Buffett increased holdings in three U.S. stocks, reduced holdings in three, and completely exited four stocks, with no new additions.
It's important to note that the 13F filing only requires funds to disclose long positions in U.S. stocks, so it doesn't fully reflect the fund's overall operations.
According to the latest data, apart from Apple and Chevron, there were no significant changes in the top ten holdings: Berkshire Hathaway reduced its Apple holdings by 10 million shares in Q4 and increased its Chevron holdings by 16 million shares. In previous quarters, Buffett had been reducing his stake in this energy giant.
The top ten holdings in Q4 were: Apple, Bank of America, American Express, Coca-Cola, Chevron, Occidental Petroleum, Kraft Heinz, Moody's, DaVita Healthcare, and Citigroup.
Furthermore, while reducing its stake in Apple, Berkshire Hathaway also cut its holdings in Paramount Global and HP by 32% and approximately 77%, respectively. The latter, due to a significant reduction of about 80 million shares, dropped out of the 'TOP 10.' These moves have led investors to speculate about a potential major new investment by Buffett.
It's reported that Berkshire has received SEC permission for the second consecutive quarter to temporarily keep one or more of its stock holdings confidential. It occasionally requests such treatment when making large investments, including multibillion-dollar stakes in Chevron, ExxonMobil, IBM, and Verizon Communications.
This is because investors often try to mimic Berkshire's moves, reflecting Buffett's reputation as one of the world's greatest investors. Berkshire doesn't want investors to buy heavily into its stocks before the acquisition is complete.
In its third-quarter report released last November, Berkshire hinted that its secret investment might involve a bank, financial company, or insurer, as it recently spent $1.2 billion on stocks in these sectors. However, it hasn't disclosed where the money went.
Finally, in terms of increased holdings, Berkshire Hathaway also added 30.6 million shares in SiriusXM, boosting its stake by over 316%.