Tuesday, August 17, 2010

Berkshire Hathaway 2nd Quarter 2010 13F-HR

Berkshire Hathaway's (BRKa) 2nd Quarter 2010 13F-HR was released yesterday.

Currently, the equity portfolio is made up of 39.3% financials, 39.1% consumer goods, 7.3% consumer services, and 5.9% healthcare. The remainder is spread across miscellaneous industrials and energy. The top five holdings are:
  1. Coca-Cola (KO) = $ 11.2 billion (23.1% of the portfolio)
  2. Wells Fargo (WFC) = $ 8.2 billion (17.0%)
  3. American Express (AXP) = $ 6.3 billion (12.9%)
  4. Procter and Gamble (PG) = $ 4.7 billion (9.7%)
  5. Kraft (KFT) = $ 3.1 billion (6.4%)
The top 5 holdings remain the same as last quarter representing more than 2/3's of the ~$ 48 billion equity portfolio value*.

Here's a summary of changes made to the portfolio this past quarter.

Equities Sold
Buffett did not sell out of any positions entirely but made minor reductions in exposure to the following:
  • ConocoPhillips (COP) - Cut position by ~15%
  • M&T Bank (MTB) - Cut by 3.6%
  • Kraft (KFT) - Cut by 1.4%
  • Procter & Gamble (PG) - Cut by 1.3%
The selling of shares in each of the above represented no more than one half percent of the entire equity portfolio's value. The COP cut was the largest yet that stock still remains a top ten position.

Equities Purchased
The biggest purchase this quarter was by far Johnson and Johnson (JNJ). Approximately $ 1 billion of additional shares (a 2.2% impact on the portfolio) were purchased bringing the total value of the position to $ 2.4 billion. JNJ is now the 6th largest position. It appears Buffett is re-building the JNJ position after selling some of it off to make room for the Burlington Northern Santa Fe acquisition.

FISERV (FISV) was the largest entirely new position (~$ 200 million...still pretty small in this context with only a .43% impact on portfolio).

Very small incremental increases were also made to the following:
  • Becton Dickinson (BDX)
  • Sanofi Aventis (SNY)
  • Nalco (NLC)
  • Iron Mountain (IRM)
None of these 4 purchases was more than .02% of the equity portfolio's value.

Adam

Long positions in BRKb, KO, WFC, AXP, PG, KFT, COP, SNY, and JNJ.

* Berkshire Hathaway's holdings of ADRs are included in the 13F-HR. What is not included are the shares listed on exchanges outside of the United States (i.e. shares in BYD, POSCO, Sanofi, and Tesco).
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