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THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

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Berkshire sheds General Motors and Procter & Gamble as it builds cash

Berkshire Hathaway logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) ... Berkshire Hathaway logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 10, 2023. REUTERS/Brendan McDermid
Berkshire Hathaway logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) ... Berkshire Hathaway logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 10, 2023. REUTERS/Brendan McDermid

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Berkshire Hathaway (BRKa.N) announced that it had reduced its interest in Amazon.com (AMZN.O) and sold its shares in General Motors (GM.N) and Procter & Gamble (PG.N), as the conglomerate owned by billionaire Warren Buffett increased its cash pile to a record $157.2 billion.

In a regulatory statement describing its U.S.-listed stock holdings as of September 30, Berkshire reported having no shares in GM and P&G after declaring equities of $848 million and $48 million in June, respectively. Additionally, Berkshire stated that it had reduced its Amazon investment by 5%.

Additionally, it would appear that Berkshire has sold its share in the specialty materials business Celanese (CE.N.), which was formerly valued at 621 million dollars.

One of the new positions was a stake in Atlanta Braves Holdings (BATRA.O) for $8 million. This company has indirect ownership over the Major League Baseball club and The Battery Atlanta, a mixed-use development next to the Braves’ Truist Park.

In July, Liberty Media, another of Berkshire’s investments, was dissolved, and the Braves were subsequently established as a separate entity.

The statement on Tuesday included specific information on the investments that comprised most of Berkshire’s equity portfolio as of September 30. This portfolio had a total value of $318.6 billion.

During the third quarter, Berkshire sold $7 billion worth of equities, including a portion of its significant investment in Chevron (CVX.N), and acquired just $1.7 billion worth of stocks. This was a negative time for Berkshire’s stock holdings, headed by Apple (AAPL.O), whose share price dropped by 12%.

The total value of the stocks that Berkshire sold in 2023 is $23.6 billion, more significant than the value it purchased. Due to the net sales, Berkshire now has a record cash investment, roughly equivalent to its $156.8 billion position in iPhone maker Apple (AAPL.O).

It is not clear from the filing which investments belong to Warren Buffett and which belong to his portfolio managers, Todd Combs and Ted Weschler, nor is it clear why the acquisitions were made. Because Buffett is widely regarded as one of the most successful investors in the world, he typically handles the company’s most significant investments. Other investors frequently attempt to profit from Berkshire’s business dealings.

To this purpose, Berkshire has decided not to disclose one or more of its assets, and the company has said that it has requested confidential treatment from the United States Securities and Exchange Commission. On occasion, Berkshire has asked for such treatment for significant investments, such as its shares worth multiple billions of dollars in IBM (IBM.N) and Exxon Mobil (XOM.N), over a decade ago. It does not appear that either is a current investment for Berkshire.

Additionally, Berkshire cut its stakes in the life insurance company Globe Life (GL.N) and completed its exit from video game producer Activision Blizzard, which Microsoft (MSFT.O) acquired last month. Both of these sales occurred during the third quarter.

Berkshire also sold off around two-thirds of its holdings in Markel Group (MKL.N), which is a significant development given that some investors in recent years have referred to the insurance and investment firm as a “mini-Berkshire.”

Buffett, who is now 93 years old, has been the CEO of Berkshire since 1965. His conglomerate controls dozens of enterprises, including the automobile insurance company Geico, the railroad BNSF, the energy and industrial industries, and consumer brands such as Benjamin Moore, Dairy Queen, Duracell, Fruit of the Loom, and See’s Candies. His company is also a train operator.


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