Tuesday, May 8, 2012

Berkshire Hathaway: Net Buyer of Equities in 1st Quarter of 2012

From Berkshire Hathaway's (BRKalatest 10-Q:

1Q 2012
Purchases of equity securities: $ 3.424 billion
Sales of equity securities:          $  834 million
Net = 2.590 billion

This is a substantial jump compared to a year ago.

1Q 2011
Purchases of equity securities: $ 834 million
Sales of equity securities:           $  9 million
Net = $ 825 million

Warren Buffett said yesterday on CNBC that they were buying two U.S. stocks and revealed both were issues that Berkshire already owns.

There were also some hints during the interview that Procter & Gamble (PG), a top five holding at the end of the 4th quarter 2011, may be one of the stocks being sold.

We should have a better idea specifically what Buffett and his two investment managers were buying when the 13F-HR is released later this month.

While the 1st quarter of 2011 wasn't an active quarter in terms of buying equities, the rest of the year certainly was.

More than $ 15.66 billion of equities was purchased while just $ 1.52 billion was sold. These numbers do not include the $ 5 billion investment in Bank of America preferred shares or the Lubrizol acquisition.

Based on some of Buffett's recent comments, it seems likely he'll continue to be fairly active.