Warren Buffett (Berkshire Hathaway) Stock Portfolio – Update 2013 Q1

Berkshire Hathaway Report 08

Warren Buffett’s Berkshire Hathaway stock holdings for Q1 2013 was filed on 5/15/2013. There was a lot activity during the first quarter of 2013, with new holdings in Chicago Bridge & Iron Company, and Starz Inc spin-off.  Increases were made to DaVita, DIRECTV, IBM, National Oilwell Varco, US Bancorp, Versign, Wabco Holdings, Walmart, and Wells Fargo.  Stakes in Archer Daniels Midland, General Dynamics were eliminated. Bank of New York Mellon, Kraft Foods Group, and Mondelez.  The filing is for the quarter ended of 3/31/2013:

 

Berkshire’s New Stock Holdings:

Chicago Bridge & Iron Company [CBI]

- A new stake was initiated in the engineering procurement & construction giant.
- A total of 6,508,600 shares of Chicago Bridge & Iron Company were purchased during the quarter, and was worth approximately $404 million ($404,185,000) as of 3/31/2013.

 

Starz Inc [STRZA] Spin-Off From Liberty Media Corp [LMCA]

- A new holding and entry in the SEC filing, Starz was a spin-off from the existing holding in Liberty Media Corporation, and was not a new purchase.
- A total of 5,622,340 shares of the media company was worth approximately $124 million ($124,535,000) as of 3/31/2013.
- Both Liberty Media and Starz began trading as separate companies on 1/14/2013.
- During Q4 2012 Berkshire increased its stake by 122,340  shares (2.24%), bringing it up from 5,500,000 shares to a total of 5,622,340 shares
- In Q2 2012, Berkshire increased its stake by 2,500,000 shares (83%) from 3,000,000 shares to 5,500,000 shares.
- During Q1 2012 its was increased stake by 1,298,600 shares (76%).
- Liberty Media was a new holding in Q4 2011.

 

 

Berkshire’s Stock Additions:

DaVita Inc [DVA]

- Berkshire increased its holding of the dialysis services company for the 6th consecutive quarter since its initial purchase and added 1,365,971 shares (10.04%) up from 13,607,935 share, bringing the total to 14,973,906 shares.  On 3/31/2013, the total value of Berkshire’s holding in DaVita was approximately $1.77 billion ($1,775,756,000).
- DaVita has been one of the more interesting holdings as it had continued to add after the first quarter  According to the SEC Filing, between 7/2/2013 – 7/3/2013 it had added in multiple transactions 639,200 shares at prices ranging from $113.42 to $114.41, bringing its total to 15,613,106 shares as of 7/26/2013.
- On 5/7/2013 Berkshire signed a Standstill Agreement not to propose a merger (to increase its stake to 25%) without consent from DaVita board, if Berkshire owns more than 15%.  Berkshire owned 14% of the healthcare company at the time.  The agreement was a bit unusual for Berkshire, which makes one consider the possibility of a takeover.  As I’ve mentioned before, DaVita was a long time favorite of Ted Weschler prior to joining Berkshire.  Weschler was instrumental in helping Buffett more recently acquire the newspapers, and was the one who signed the DaVita agreement.  This looks like the precursor move for him to help Buffett unload the elephant gun in a friendly takeover!
- During the previous quarter Q4 2012 Berkshire increased its stake in DaVita significantly by 3,410,366 shares (33.44%) up from 10,197,569 shares, bringing the total to 13,607,935.  Berkshire added shares multiple times between the end of Q4 2012 and the end of Q1 2013
- In Q3 2012 Berkshire added 897,569 shares (9.65%) up from 9,300,000 shares, bringing the total to 10,197,569.  After the third quarter, the company continued to buy 2,095,484 more shares (20.5%), bringing its total to 12,293,053 shares as of 11/26/2012.
- In Q2 2012 the company purchased 3,300,000 shares (55%), from 6,000,000 to a total of 9,300,000 shares.
- In Q1 2012 Berkshire more than doubled its stake by adding 3,315,500 shares (124%), from its original 2,684,500 to a total of 6,000,000 shares.
- DaVita Inc, was a new holding in Q4 2011.

 

DIRECTV [DTV]

- Berkshire increased its holdings of DIRECTV for the sixth consecutive quarter, 3,237,900 shares (9.51%) up from 34,037,500 shares, bringing its total to 37,275,400 shares. On 3/31/2013, the total value of Berkshire’s holdings in the digital television provider was approximately $2.1 billion ($2,109,415,000).
- During the previous quarter Q4 2012 4,481,900 shares were added (15.16%) up from 29,555,600 shares.
- In the third quarter (Q3 2012) 1,134,900 shares were added (3.99%) up from 28,420,700 shares to 29,555,600 shares.
- In Q2 2012 5,421,100 shares were added (23.6%) up from 22,999,600 shares to 28,420,700 shares.
- In the first quarter (Q1 2012), Berkshire added 2,651,200 shares (13%) from 20,348,400 shares, bringing its Q1 2012 total to 22,999,600 shares. During Q4 2011 Berkshire quadrupled its stake by adding 16,099,000 shares (378.85%) up from its original 4,249,400 shares, with a Q4 2011 total of 20,348,400 shares.
- DTV was a new holding in Q3 2011.

 

International Business Machines [IBM]

- For the sixth consecutive quarter, Buffett increased Berkshire’s holdings of International Business Machines, adding 6,500 shares (0.01%) up from 68,115,484 shares, bringing its total to 68,121,984 shares. On 3/31/2013, the total value of Berkshire’s holdings in IBM was approximately $14.5 billion ($14,530,420,000).
- During the previous quarter Q4 2012 597,588 shares were added (0.88%) up from 67,517,896 shares, bringing its total to 68,115,484 shares.
- In Q3 2012 Buffett added 872,500 shares (1.3%) up from 66,645,396 shares to 67,517,896 shares.
- In Q2 2012 Buffett added shares for the third consecutive quarter with 2,237,596 more shares (3.5%) up from 64,395,700 shares.
- During Q1 2012 Berkshire added 489,769 shares (1%), from 63,905,931 shares, bringing its total to 64,395,700 shares.
- Buffett increased Berkshire’s holdings of IBM in Q4 2011, to an approximate 5.5% ownership of the company, approximately $12 billion ($11,751,023,000) stake by 12/31/2011.

 

National Oilwell Varco, Inc. [NOV]

- Berkshire increased its stake in National Oilwell Varco, adding2,189,500 shares (41.35%) up from 5,294,800 shares, bringing its total to 7,484,300 shares. On 3/31/2013, the total value of Berkshire’s holding in the maker of equipment & components used in the oil & gas industry, had a market value of approximately $529 million ($529,514,000). .
- During the previous quarter Q4 2012 1,108,000 shares (26.46%) were added up from 4,186,800 shares, bringing its total to 5,294,800 shares.
- In Q3 2012 Berkshire nearly doubled its stake by adding 1,345,600 shares (47.36%) up from 2,841,200 to 4,186,800 shares.
- The holding was a new stake in the second quarter (Q2 2012).

 

US Bancorp [USB]

- Berkshire increased its stake in the regional bank, adding 193,500 shares (0.32%) up from 1,956,791 shares, bringing its total to 2,085,274 shares. On 3/31/2013, the total value of Berkshire’s holding had a market value of approximately $2 billion($2,085,274,000).
- During the previous quarter Q4 2012 added 728,435 shares (58.32%) up from 1,248,901 shares, bringing its total to 1,977,336 shares.
- In Q3 2012, Berkshire again reduced its holdings in US Bank slightly for the third consecutive quarter by 4,736,112 shares (-7.17%), down from 66,000,713 shares, bringing the total to 61,264,601 shares. On 9/30/2012, the company’s holdings in the bank was worth approximately $2.1 billion ($2,101,375,000).
- During Q2 2012 Berkshire reduced its holdings in USB by 3,038,613 shares (-4.4%), down from 69,039,326 shares, bringing the total to 66,000,713 shares.
- During Q1 2012 it reduced its stake by 100 shares (-0.0001%), down from 69,039,426 shares, to a total of 69,039,326 shares.
 

VeriSign Inc [VRSN]

- Berkshire increased its stake in the internet infrastructure services company, adding 4,488,400 shares (121.78%) up from 3,685,700 shares, bringing its total to 8,174,100 shares.  On 3/31/2013, the total of Berkshire’s holding had a market value of approximately $386 million ($386,389,000).
- VeriSign was a new holding in the previous quarter Q4 2012.

 

WABCO Holdings Inc. [WBC]

- Berkshire increased its stake in the manufacturer of electronic, mechanical, and mechatronic components for the automotive industry (truck, trailer, bus, car), adding 4,400 shares (0.11%) up from 4,071,925 shares, bringing its total to 4,076,325 shares.  On 3/31/2013, the total of Berkshire’s holding had a market value of approximately $287 million ($287,748,000).
- During the previous quarter Q4 2012 added 2,472,861 shares (154.64%) up from 1,599,064 shares, bringing its total to 4,071,925 shares.
- The holding was a new stake in the third quarter of 2012 (Q3 2012).  A initial stake of 1,599,064 shares was worth approximately $92 million ($92,235,000) as of 9/30/2012.

 

Wal-Mart Stores Inc [WMT]

- Berkshire increased its the discount retailer, adding 1,746,053 shares (3.68%) up from 47,501,182 shares, bringing its total to 49,247,235 shares.  On 3/31/2013, the total of Berkshire’s holding had a market value of approximately $3.685 billion ($3,685,170,000).
- During the previous quarter Q4 2012 the company added 793,040 shares (1.69%) up from 46,708,142 shares, bringing its total to 47,501,182 shares.
- In Q1 2012 Berkshire increased its stake by 7,671,000 shares (20%) from 39,037,142 shares to 46,708,142 shares.

 

Wells Fargo & Co. [WFC]

- Buffett increased Berkshire’s holding in the bank for the eighth consecutive quarter, and the 13th time in 4 years.  During the first quarter another 18,312,462 shares (4.16%) were added up from 439,857,861 shares, bringing its total to 458,170,323 shares.  On 3/31/2013, the total of Berkshire’s holding had a market value of approximately  $16.9 billion ($16,947,720,000).
- During the previous quarter Q4 2012 another 17,308,316 shares (4.09%) were purchased, bringing the total number of shares from 422,549,545 to 439,857,861 shares.  Berkshire’s stake in Wells Fargo had a market value of approximately $15 billion ($15,034,342,000).
- During the previous quarter (Q3 2012) Buffett added 11,504,300 shares (2.79%) bringing the total number of shares from 411,045,245 to 422,549,545 shares.
- During the second quarter (Q2 2012) Buffett increased Berkshire’s holding by another 16,710,317 shares (4.2%) from 394,334,928 to 411,045,245 shares.
- During the first quarter (Q1 2012) Berkshire’s stake in WFC increased by 10,631,300 shares (3%) from 383,703,628 shares to a total of 394,334,928 shares.
- Buffett had previously added to his favorite bank during Q4 2011 (22,333,820 shares, 6.18%), Q3 0211 (9,042,200 shares, 2.56%), the Q2 2011 (9,703,683 shares, 2.83%), Q4 2010 (6,215,080 shares, 1.8%), as well as during the 3rd quarter of 2010, and 3 out of 4 quarters in 2009.

 

 

Berkshire’s Stock Reductions:

Bank of New York Mellon Corp. [BK

- Berkshire decreased its holding in the bank by -694,800 shares (-3.54%) down from 19,633,915 shares, bringing its total to 18,939,115 shares.  On 3/31/2013, the total of Berkshire’s holding had a market value of approximately $530 million ($530,106,000).
- During the previous quarter Q4 2012 another 914,400 shares (4.88%) were up from 18,719,515, bringing the total to 19,633,915 shares. On 9/30/2012, the company’s stake in the bank had a market value of approximately $444 million ($444,119,000).
- During the previous quarter (Q2 2012) it had doubled its shares adding 13,112,049 (233.8%) to a total of 18,719,515 shares.
- During the first quarter (Q1 2012) it had doubled its shares to 3,813,551 (213%) from 1,793,915, to a total of 5,607,466 shares.  The bank was a new holding in Q3 2010.

 

Kraft Foods Group Inc. [KRFT

- Berkshire decreased its holding in the grocery manufacturer selling -66,653 shares (-3.99%) down from 1,668,714 shares, bringing its total to 1,602,061 shares.  On 3/31/2013, the total of Berkshire’s holding had a market value of approximately  $82.5 million ($82,554,000).
- During the previous quarter Q4 2012 Berkshire reduced its holding in Kraft Foods Inc by 8,486,069 shares (-83.56%), down from 30,464,350 shares, bringing the total to just 1,668,714 shares.  On 12/31/2012, the company’s holdings in the Kraft grocery business was worth approximately $75 million ($75,877,000).
- Following the spinoff of Kraft Foods Group Inc [KRFT] (North American grocery business) from Mondelez International Inc [MDLZ] (candy & snacks business) formerly Kraft Foods Inc [KFT], Berkshire would have received 10,154,783 of the new Kraft Foods Group Inc shares and 30,464,350 of Mondelez International Inc.

 

Mondelez International Inc [MDLZ]

- Berkshire reduced its stake in the global snacks giant selling -5,787,700 shares (-45.079%) down from 12,840,450 shares, bringing its total to 7,052,750 shares.  On 3/31/2013, the total of Berkshire’s holding had a market value of approximately  $215.9 million ($215,919,000).
- During the previous quarter Q4 2012 Berkshire reduced its stake in Mondelez by 17,623,900 shares (-57.85%), down from 30,464,350 shares, bringing the total to 12,840,450 shares.
- During the third quarter of 2012 (Q3 2012) Berkshire did not sell or reduce its holdings in the new Kraft Foods Group or Mondelez International Inc [MDLZ], as the spin-off did not yet take place during the reporting period.
- In Q2 2012 Berkshire reduced its holdings in Kraft (for the 5th consecutive quarter), selling 19,190,775 shares (-24.6%), reducing its holding from 78,017,165 shares, bringing the total to 58,826,390 shares.
- In Q1 2012 (by 9,017,548 shares, -10%), Q4 2011 (by 2,711,995 shares, -3.02%), Q3 2011 (by 9,720,916 shares, -9.77%), and Q2 2011 (by 5,746,960 shares, -5.46%).

 

Berkshire’s Stock Sell Offs:

Bank of New York Mellon Corp. [BK]

- Berkshire again increased its stake in the bank by adding 914,400 shares (4.88%) up from 18,719,515, bringing the total to 19,633,915 shares. On 9/30/2012, the company’s stake in the bank had a market value of approximately $444 million ($444,119,000).
- During the previous quarter (Q2 2012) it had doubled its shares adding 13,112,049 (233.8%) to a total of 18,719,515 shares.
- During the first quarter (Q1 2012) it had doubled its shares to 3,813,551 (213%) from 1,793,915, to a total of 5,607,466 shares.  The bank was a new holding in Q3 2010.

 

Archer Daniels Midland Company [ADM]

- Berkshire eliminated its stake in the agricultural manufacturing giant selling off a total of 5,956,600 shares.
- ADM was a new holding in the previous quarter Q4 2012 and was worth approximately $163 million ($163,151,000) as of 12/31/2012.

 

General Dynamics Corp [GD]

- Berkshire eliminated its stake in the U.S. defense contractor selling off a total of 3,877,122 shares.

 

 

Buffett, Combs, Weschler:

- During the second quarter of the year Buffett said Weschler and Combs would oversee about $4 billion each, nearly double the amount Buffett previously said at the company’s annual meeting earlier in the reporting year (May 5 2012).  Buffett though, is still responsible for the larger investments (IBM, WFC) and likely the older holdings (IR, GE, JNJ, PG, USB, UPS, VRSK).
- Stake increases in DaVita were likely Ted Weshcler’s, as he previous held it prior to joining Berkshire.  This is one of the more interesting holdings as Berkshire continued to add to DVA continuously ever since it became a holding.  The holding has now become worth over $1.67 billion alone.
- CVS, Dollar General, DIRECTV, and Visa were already in the Berkshire portfolio before Weschler, and it is likely Todd Combs had made those stock moves. Some were also previous investments held by Combs as well.
- The size of BK, DE, GM, PCP, WBC, NOV, and VIAB stakes suggest they are either Combs or Weschler’s picks.
- It has been revealed that Weschler was also responsible for putting together the newspaper deals.

- As I mentioned in previous summaries, it is likely that the long time holdings of JNJ, KRFT/MDLZ, PG, or USB were not bad investments and does not mean Buffett doesn’t like the businesses anymore (had mentioned in Q2 2012 that he thinks they are strong businesses), but perhaps that they have already appreciated significantly over the years, and likely selling them to provide capital to Combs & Weschler as well has to himself in order to allocate towards better opportunities.

 

SEC Filing:

You can view the 2/14/2013 SEC filing which discloses Berkshire Hathaway stock holdings here:
http://www.sec.gov/Archives/edgar/data/1067983/000119312513060317/d481559d13fhr.txt

The filing does not differentiate between investments that are made by Berkshire Hathaway, its subsidiaries, Todd Combs, Ted Weschler, or Warren Buffett himself (as the chairman and chief executive of the company).  Buffett 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 Financial, etc.).

 

Full Disclosure:

I am long Berkshire Hathaway [BRK.A /BRK.B], DaVita, Wells Fargo, Kraft, Mondelez.  I do not plan on acquiring or selling shares, of any of the companies mentioned within this post, within the next 3 trading days.

 

Recommended Warren Buffett Related Books:

Although its easy to follow and copy Warren Buffett’s stock moves (buys/sells), we only learn of his actions months after it has been done (SEC filing is always later). We would never know for sure why the move was made or what other reasons were behind it.

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

All of the above books are also featured in my Amazon.com and Amazon.ca Associates Store.

Thanks and Happy Investing! – The Investment Blogger © 2013

Author: The Investment Blogger

I’m a private investor based out of Canada, and 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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