In data from its most recent 13-F filing, Warren Buffett’s Berkshire Hathaway (BRK/A) portfolio showed significant additions to its positions in Bank of America (BAC), US Bancorp (USB), Amazon (AMZN), and Redhat (RHT) which was acquired earlier this year. With these additions, the portfolio is still very overweight financial stocks, which is 45.4% of the portfolio, and technology which makes up for another 26.5% of the total portfolio thanks to a large position in Apple (AAPL). As shown below, Buffett’s position in AAPL is the largest single holding of the portfolio at 23.7%. The next highest is BAC at nearly half of that and a number of other financials stocks also take up 1% or more of the portfolio. The consumer staples and discretionary sectors also make up sizeable portions of the holdings at 15.2% and 7%, respectively. While several holdings were added on to, the company trimmed its position in Charter Communications (CHTR) and closed out of its position in USG (USG) which was acquired earlier this year. CHTR still is one of the larger holdings in the portfolio at around 1% in spite of this cut.
In the table below, we show each of the portfolio’s holdings as well as the percentage of the total portfolio value the stock takes up, its price, and both YTD and QTD performance. As shown, YTD the portfolio has done pretty well with only eight stocks down. But Q3 has been a tough quarter as more than half have fallen. The worst of which has been Teva Pharmaceuticals (TEVA) which is down 26.54%; tacking on to its 56.03% YTD decline. Fortunately TEVA was only 0.19% of the portfolio as of the end of Q2. American Airlines (AAL), Kraft Heinz (KHC), and M&T Bank (MTB) are all also down over 10% this quarter. While not quite as bad as TEVA, KHC’s 41.08% decline this year is also notable. Each of the aforementioned stocks that the company increased their position size on also has fallen in Q3. With a heavyweight in the sector, the performance of the portfolio’s financial stocks has been somewhat mixed. Moody’s (MCO) has been the second best performing stock behind StoneCo (SNTE) with its 53.35% YTD gain, and while this quarter it has continued to do well rising just under 10%, every other financial stock is down this quarter. On the bright side, there are more stocks that are up over 10% than those that have fallen 10%. Given the surge in real estate, the best of these has been STORE Capital (STOR) which has risen 15%. STOR is the only real estate stock in the portfolio. United Parcel Services (UPS), Restaurant Brands International (QSR), VeriSign (VRSN), Costco (COST), and Procter & Gamble (PG) are also all up double digits.
We created a custom portfolio of Buffett’s holdings so that members can use our tools to keep track of these stocks. In terms of longer-term trends as well as overbought and oversold levels, as shown in our Trend Analyzer below, the portfolio’s holdings are a bit all over the place. An equal share of the portfolio’s stocks (19) are in uptrends and trending sideways. The remaining nine stocks are in long term downtrends. After recent mean reversion, a majority are now sitting in neutral territory while there are also more that are overbought than oversold. Only Costco (COST) and STORE Capital (STOR) are currently at any sort of extreme levels (both overbought at more than 2 standard deviations above their 50-days). Start a two-week free trial to Bespoke Premium to use our Custom Portfolios tool where you can easily monitor portfolios like Buffett’s.