Berkshire Hathaway Exits Citigroup, Cuts Bank of America Stake by 48.66%

Warren Buffett's Berkshire Hathaway has made significant adjustments to its portfolio, with a notable focus on reducing its exposure to banking stocks. The company's 13F report for the first quarter, ending March 31, revealed that Berkshire Hathaway has completely exited its position in Citigroup, selling off 14.63 million shares, and has reduced its stake in Bank of America by 48.66 million shares. Additionally, Berkshire Hathaway has maintained its significant holding in Apple, with 300 million shares unchanged. On the buying side, the company has increased its stake in the alcohol company Constellation Brands by 6.38 million shares, a 113.5% increase, and has added 760,000 shares to its position in Occidental Petroleum. Berkshire Hathaway also increased its holdings in Pool Corporation by 860,000 shares. Notably, the company did not initiate any new positions in the first quarter.

Federal Reserve Chairman Jerome Powell addressed the significant changes in inflation and interest rate prospects post-2020 pandemic during his speech at the second Thomas Laubach Research Conference. Powell highlighted that future inflation may be more volatile, and the U.S. could be entering a period of more frequent and prolonged supply shocks, posing significant challenges for the economy and central banks.

In contrast, foreign investors have been increasing their holdings in Chinese assets. Soros Capital Management LLC, led by the son of George Soros, has reallocated its portfolio to include more Chinese assets, with significant positions in FXI, Yum China, and Alibaba. Tiger Global Management also made notable adjustments, exiting positions in Qualcomm and Arm, while increasing its holdings in Pinduoduo by 1.78 million shares, NVIDIA by 1.28 million shares, and Taiwan Semiconductor Manufacturing Company by 600,000 shares. Tiger Global also initiated a new position in the online real estate company Zillow with 5.21 million shares.

Hillhouse Capital's HHLR, another prominent investment firm, has also increased its exposure to Chinese assets. By the end of the first quarter, HHLR's top ten holdings included Pinduoduo, Alibaba, Futu Holdings, BeiGene, NetEase, Ke Holdings, Legend Biotech, JD.com, Vipshop, and WNS HLDGS LTD, with nine out of the ten being Chinese companies. This strategic move reflects a growing trend among foreign investors to capitalize on the opportunities presented by the Chinese market.