Berkshire Hathaway Reduces Apple, Bank of America Holdings, Adds to Healthcare, Steel, Real Estate

On August 15, Berkshire Hathaway released its latest quarterly holdings report, revealing significant changes in its portfolio. The report showed that Berkshire had reduced its holdings in Apple and Bank of America, while also unveiling several new investments in various sectors, including healthcare, steel, and real estate.

The new investments included significant positions in UnitedHealth Group, Nucor Corporation, Lennar Corporation, D.R. Horton, Lamar Advertising Company, and Alexion Pharmaceuticals. These new additions were part of a broader strategy to diversify the portfolio and include defensive stocks with potential for value recovery. The total market value of these new investments at the end of the second quarter was approximately 36.5 billion dollars.

The report also highlighted Berkshire's strategy of maintaining secrecy during the accumulation phase of its investments. This approach helps to avoid premature disclosure of investment targets, which could drive up stock prices and increase acquisition costs. For instance, Berkshire had previously kept its investments in AIG and Chevron confidential until they were officially disclosed.

In addition to the new investments, Berkshire reduced its holdings in Apple by 20 million shares, a decrease of approximately 6.67%. Despite this reduction, Apple remained the largest holding in Berkshire's portfolio. The company also decreased its stake in Bank of America by over 26.3 million shares, a reduction of about 4.17%. Other notable changes included the sale of shares in Charter Communications and T-Mobile US, as well as a reduction in its holdings of FWONK, a media company.

Berkshire also increased its stakes in several other companies, including Chevron, Constellation Brands, Pool Corporation, and HEICO Corporation. These moves reflect Berkshire's ongoing strategy of investing in companies with strong business models and competitive advantages, aligning with Buffett's "moat" investment philosophy.

The disclosure of these holdings provides valuable insights into Berkshire's investment strategy and its approach to managing a diversified portfolio. The company's focus on defensive stocks and its continued investment in established companies with strong fundamentals underscore its commitment to long-term value creation.