At Warren Buffett’s Berkshire Hathaway (BRKB) purchased shares of Taiwan semiconductor (TSM) for the first time during the third quarter bear market, while emptying Store capital (STOR) entirely.
What Warren Buffett Bought, Sold in the Third Quarter
Buffett-led Berkshire has acquired about 60 million shares of Taiwan Semiconductor worth more than $4.1 billion, according to Berkshire’s latest 13F filed Monday night, as tracked by whalewisdom.com.
In October, Taiwan Semi, also known as TSMC, the world’s largest contract chipmaker, achieved a beat-and-raise in the third quarter, defying weakness in the chip sector. TSM stock jumped 9.6% to 80.89 trading today, extending last week’s rally above the 50-day moving average.
Besides Taiwan Semi, Berkshire Hathaway opened positions in Louisiana Pacific (LPX) and Jefferies Financial Group (JEF) during the Q3 bear market. Berkshire bought 5.8 million shares of Louisiana Pacific, a maker of engineered wood building products, worth nearly $297 million. He bought about 433,000 shares of Jefferies Financial Group, a global investment banking and capital markets firm, worth $12.8 million.
LPX stock climbed 9.7% to 64.54 on Tuesday, topping the 200-day moving average. JEF shares rose 2.9% to 37.91 on Tuesday.
During the third quarter, Berkshire increased its existing holdings in several stocks: in western oil (OXY) 22%; World Paramount (PARA) by 16%; RH (RH), formerly Restoration Hardware, 8%; Celanese (EC) 6%; and Chevron (CVX) of 2%. The conglomerate purchased an additional 35.8 million shares of OXY stock, an additional 12.8 million shares of PARA stock and an additional 3.9 million shares of CVX stock.
Leaving Store Capital last quarter, Berkshire reduced its existing holdings in several stocks: in American bank (USB) 55%; Bank of New York Mellon (BK) 14%; ActivisionBlizzard (ATVI) by 12%; General Engines (MG) 5%; and Hooks (KR) of 4%.
On September 15, Store Capital, a real estate investment trust or REIT, announced that it was being acquired by GIC, a global institutional investor and Oak Street-owned fund, in an all-cash deal valued at $14. billions of dollars.
Berkshire’s third-quarter earnings report on Nov. 5 had already revealed that Buffett was a net buyer of stocks, including OXY stock, during a volatile third quarter. But investors had waited for the 13F filing, which arrived Monday after the market closed, to learn more about stocks Buffett bought and sold last quarter.
The S&P 500 index ended the third quarter in bearish territory for a second consecutive quarter.
Top Berkshire Hathaway Stocks
In the third quarter, Berkshire retained several large positions in Warren Buffett’s stock-heavy Dow portfolio, according to File 13F Monday night.
The main conglomerate stock by market value is Apple (AAPL), with a stake worth $123.66 billion at the end of September. But Bank of America (BAC) is the #1 stock by number of shares held, with AAPL stock at #2 by this metric. In addition, American Express (AXP), Coke (KO) and Kraft-Heinz (KHC) are among Buffett’s largest stock holdings by number of shares.
A smaller but notable holding is Amazon (AMZN). Berkshire maintained positions in each of these holdings last quarter.
Warren Buffett has long beaten the market with his picks. The Berkshire chief has earned a reputation as a long-term investor, holding stocks for years, if not decades. The company has held AAPL shares since Q1 2016 and KO shares since Q1 2001, for example.
Investors are following Berkshire’s 13F filings to see where the investing legend is putting his money to work in the stock market. A new purchase of Warren Buffett stock can send that company’s stock skyrocketing.
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In the third quarter, Warren Buffett’s stock purchases exceeded stock sales by $3.7 billion, including $2 billion invested in OXY stock. Berkshire Hathaway also repurchased $1.05 billion of its own stock.
Amid third-quarter volatility, Berkshire posted a $10.5 billion loss on equity investments. Meanwhile, its cash hoard has grown from $105.4 billion at the end of June to $109 billion at the end of September.
So far in 2022, Berkshire has accelerated the pace of investment activity. He notably raised his energy bet after the Russian invasion of Ukraine on February 24, which disrupted the world supply of oil and gas. In 2021, Berkshire Hathaway mostly played defense as the stock market rose.
Class B shares of Berkshire stocks gained 1.4% to 313.07 in the stock market today. Apple stock rose 3.2% to 153.02.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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