Tuesday, November 16, 2010

Berkshire Hathaway 3rd Quarter 2010 13F-HR

Berkshire Hathaway's (BRKa) 3rd Quarter 2010 13F-HR was released yesterday.

Equities Purchased
Buffett continues to build on his 2nd largest position, Wells Fargo (WFC), adding 5% to Berkshire's already sizable stake. The total value of that position now stands at $ 9.3 billion (~18% of equity portfolio).

He also increased Berkshire's holdings of Johnson and Johnson (JNJ). The stake was increased 3% bringing the total value of the JNJ position to $ 2.7 billion (~5% of equity portfolio). Currently, JNJ is Berkshire's 6th largest position. Buffett continues re-building the position after selling some of it off to make room for the Burlington Northern Santa Fe acquisition.

The only entirely new position is a very small one in BNY Mellon (BK) worth ~$ 55 million at current prices (barely more than .1% impact to the portfolio).

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

Equities Sold
Buffett sold all shares of the following stocks:
  • Home Depot (HD)
  • CarMax (KMX)
  • Iron Mountain (IRM)
  • Republic Services (RSG)
  • NRG Energy (NRG)
In addition, Berkshire reduced exposure to the following:
  • Comcast (CMCSK) - Cut stake by 98%
  • Ingersoll-Rand (IR) - Cut stake by 89%
  • Nike (NKE) - Cut stake by 52%
  • Nalco (NLC) - Cut stake by 33%
  • Fiserv (FISV) - Cut stake by 11%
  • Moody's (MCO) - Cut stake by 6%
  • Procter & Gamble (PG) - Cut stake by 2%
The shares sold in each of the above stocks represented less than one percent impact on the entire equity portfolio value. Other than P&G, none of these remaining positions represent a significant portion of the Berkshire Hathaway equity portfolio (MCO is 1.5%, all others less than 1%).

Portfolio Summary
At the end of 3Q, the equity portfolio* was made up of 41% consumer goods, 39% financials, 7% consumer services, and 6% healthcare. The remainder is primarily spread across miscellaneous industrials and energy. Top five holdings:
  1. Coca-Cola (KO) = $ 12.6 billion (approx. 25% of the portfolio)
  2. Wells Fargo (WFC) = $ 9.3 billion (18%)
  3. American Express (AXP) = $ 6.5 billion (13%)
  4. Procter and Gamble (PG) = $ 4.9 billion (9%)
  5. Kraft (KFT) = $ 3.3 billion (6%)
These top 5 represent approximately 71% of the equity portfolio value at yesterday's prices.

Adam

Long positions in BRKb, KO, WFC, AXP, PG, KFT, and MCO.

* 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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