FRI, AUG 19, 2022
Berkshire triples stake in 'under-the-radar' lender
The biggest addition to Berkshire Hathaway's stock portfolio in the second quarter (that we didn't already know about) is Ally Financial.
The company's 13F filing with the SEC on Monday shows that it more than tripled its holding to 30 million shares, currently valued at just over $1 billion. Based on its June 30 price, that is an addition of around $700 million in value.
CNBC Pro notes Berkshire now holds a nearly 10% stake in what it calls an "under-the-radar" U.S. auto and home lender, making Berkshire its second biggest sharesholder after BlackRock, according to InsiderScore.
The stock surged between 2020 and 2021 due to soaring pandemic demand for new and used cars, but is down almost 26% year-to-date, making it less expensive compared to competitors, and potentially more appealing to (I assume) one of Berkshire's portfolio managers.
Ally Financial executives ring the opening bell to celebrate its IPO at the NYSE in 2014. REUTERS/Brendan McDermid
Among the other big increases in the list below, we already knew about Berkshire's Occidental buys. Due to the size of the stake, it has to file within days of new purchases. (The most recent filing on August 8 puts the holding at 188 million shares currently valued at around $12.5 billion.)
The increases for Chevron and Apple are relatively small compared to the large size of the holdings, and were inferred from the value of those holdings as listed in the previous week's 10-Q.
The HP stake was disclosed in early April. The increase is entirely due to the addition of around 16 million shares to New England Asset Management's portfolio, which is reported separately from Berkshire's holdings. (NEAM was part of Berkshire's 1998 acquisition of General Re.)
The quarter's reductions, including the complete elimination of Verizon and Royalty Pharma, are all fairly small by Berkshire standards, coming in at around $300 million or less.
Here's the complete list:
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BERKSHIRE'S TOP U.S. STOCK HOLDINGS - Aug. 19, 2022
Berkshire's top holdings of disclosed publicly-traded U.S. stocks by market value, based on today's closing prices.
Holdings are as of June 30, 2022 as reported in Berkshire Hathaway’s 13F filing on August 15, 2022, except for Apple, Bank of America, Chevron, and U.S. Bancorp, which also include shares held as of June 30, 2022 as disclosed in New England Asset Management’s 13F filing on August 15, 2022, and except for Occidental Petroleum, which is as of August 8, 2022.
In addition to U.S. stocks, shares held as of December 31, 2021 of China's BYD, as listed in Buffett's 2021 letter to shareholders, are included. The price of those shares in U.S. trading is used to approximate the current market value of the position. The value of the stake as a percentage of the company's market value is fixed at what was listed as of December 31, 2021 in the letter.
The full list of holdings and current market values is available from CNBC.com's Berkshire Hathaway Portfolio Tracker.
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