Warren Buffett (Berkshire Hathaway) Stock Portfolio – Update 2010 Q3



Warren Buffett’s Berkshire Hathaway stock holdings for Q3 2010 was filed on 11/15/2010.  There has been a lot stock activity, with a new stake in Bank of New York Mellon Corp., significant reductions of shares in Comcast, Nike, Nalco Holding, and complete eliminations of holdings in Carmax, Home Depot, Iron Mountain, NRG Energy, and Republic Services.

Warren Buffet’s Berkshire Hathaway (BRK.A / BRK.B) stock updates for the third quarter of 2010 (End of 9/30/2010):

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Berkshire’s New Stock Holdings:

Bank of New York Mellon Corp. [BK]

–  A new stake was purchased in the Bank of New York Mellon (BNY Mellon), which consists of two main banking operations.  One is the Bank of New York Mellon which is involved in institutional businesses (asset servicing, issuer services, treasury services, broker/dealer & advisor services, asset management).  The other is BNY Mellon,  National Association (BNY Mellon, N.A.), which operates its chartered bank and wealth management business.

– A total of 1,992,759 shares were purchased in the 3rd quarter and was worth about $52 million as of 9/30/2010.   Buffett has always invested heavily in financial services and banking, especially during difficult economic times.  Past investments include Salomon Brothers, US Bancorp, Goldman Sachs, Wells Fargo, M & T Bank, Sun Trust, etc.

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Berkshire’s Stock Additions:

Wells Fargo & Co.  [WFC]

– Berkshire increased its holdings in the bank by 16,320,460 shares (5.1%), which brings the total to  336,408,845 shares.  Within the last two years Buffett has been very open about WFC being his favorite bank and one of his favorite long time holdings.  On 9/30/2010  the value of its holdings in WFC was approximately $8.4 billion!

Johnson & Johnson [JNJ]

– This quarter, Berkshire added to the holdings of this health care and consumer products conglomerate, increasing its position by 3.16% to 42,624,563 shares.  Its value as of 9/30/2010 was $2.6 billion.

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Berkshire’s Stock Reductions:

Comcast Corp [CMCSK]

– During the quarter, Berkshire’s significantly reduced its stake in one of the country’s most well known and largest (market value) cable services company.  It slashed its stake by -98.44% from 12,000,000 shares to a minor 186,897.  During the previous quarter (Q2 2010) the market value of its holdings was  $197 million, compared to just $3.2 million this quarter with its small stake.

Fiserv Inc [FISV]

– Berkshire significantly reduced its holdings of Fiserv Inc. a provider of integrated information management and electronic commerce systems & services, by -11.1% from 4,400,000 shares to 3,910,800 shares.  Interestingly, this was a new holding last quarter (Q2 2010).  It was worth $210 million at the end of Q3 which is an increase of about $10 million or 4.76% over the market value last quarter.

Moody’s Corp. [MCO]

– Berkshire had been reducing its holdings in Moody’s continually since Q2 2009.  This quarter a reduction of -6.2% was made, from 30,783,876 to 28,873,756 shares.  The value of the holdings at the end of the quarter was $721 million.  See Berkshire article on reduction of Moody’s shares:

http://theinvestmentblog.net/2009/09/04/warren-buffett-berkshire-hathaway-sells-more-moodys-shares/

Nalco Holding Co. [NLC]

– Another major reduction was in Nalco Holding Co, selling off -32.87%.  This reduced Berkshire’s stake in the industrial integrated water treatment company from 9,150,000 to 6,142,300 shares.

Nike Inc. [NKE]

– In the third quarter Berkshire cut its holding in the worlds most famous and largest maker of athletic footwear, apparel, & equipment by more than half.  It reduced its stake by -52.32% to 3,642,929 shares down from 7,641,000 shares last quarter.  Its holdings in Nike were worth $292 million at 9/30/2010.  Nike has been a long time holding of Berkshire Hathaway.

Procter & Gamble Co. [PG]

– A slight reduction was made in the holdings of the consumer products conglomerate Procter & Gamble.  Berkshire reduced its holdings by -1.7%   from 78,071,036 to 76,766,036.

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Berkshire’s Stock Sell Offs:

Carmax Inc. [KMX]

– After reducing the used car retailer in Q2 2010, as well as consecutive quarters in 2009 (Q1, Q2, Q4),  Berkshire finally eliminated its stake.  It sold off its remaining 7,725,900 shares worth about  $153.7 million.

Home Depot Inc. [HD]

– Berkshire sold off its remaining 2,757,898 shares of the home improvement retailer.  Its stake was worth $77.4 million at the end of the quarter.  Interestingly, it still holds a small stake in Home Depot’s competitor Lowes Companies Inc.

Iron Mountain Inc. [IRM]

– During the quarter Berkshire sold off its $179.7 million stake (8,000,000) in the records management services provider.

NRG Energy, Inc. [NRG]

– Having reduced significant portions of the wholesale energy company in the past 2009, Berkshire had eliminated its remaining 6,000,000 shares worth about $127.3 million in the 3rd quarter.

Republic Services Inc. [RSG]

– A new stake was purchased in Republic Services Inc., last year (2009 Q3). In December 2008 the company, one of the largest solid waste service providers, merged with Allied Waste Industries.  Initially 3,625,000 shares were purchased, with a market value of $96.3M as of 9/30/2009.  The holding was small and only about 0.17% of the portfolio.  In the third quarter of 2010, Berkshire got rid of its 10,827,700 shares of the company, with a market value of $322 million as of 9/30/2010.

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SEC Filing:

You can view the 11/15/2010 SEC filing which discloses Berkshire Hathaway stock holdings here:

http://www.sec.gov/Archives/edgar/data/1067983/000095012310105654/v57789ce13fvhr.txt

The filing does not differentiate between investments Berkshire Hathaway makes and investments its subsidiaries make, or investments Warren Buffett himself makes as the chairman and chief executive of the company.  Buffet usually makes his stock investments for Berkshire Hathaway through his insurance arms (Berkshire Hathaway Life Insurance Co. of Nebraska, Columbia insurance Co, GEICO, National Indemnity Co, Wesco, etc.).

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Recommended Warren Buffett Related Books:

Although it is easy to follow and copy Warren Buffett’s stock moves (purchases/sales), we can only learn of his actions months after it has been done (SEC filing is always a bit later for Berkshire Hathaway).  We would never know for sure why the move was made or what other reasons were behind it.  Is it because he no longer likes something about the businesses?  Could it be a move to free up capital or reduce taxes?  Why buy/sell one company over another similar company?  What investment need does a purchase fill in his overall strategy for the company?

Buffett recommends investors who want to learn how he invests,  to read his past annual reports from the Berkshire Hathaway website.  He also suggests to read books that he specifically endorses and recommends.  The following is list of those few books (I’ve have read these myself and learned to invest like Buffett):

Thanks and Happy Investing!

Author: The Investment Blogger

I’m a private investor, who developed the “function-centric investing” paradigm. I am an investor who blogs a little here and there, rather than a blogger who invests a little here and there. I'm passionate about investing and sharing investment knowledge!

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