During the third quarter, the stock market came roaring back, and Warren Buffett engaged himself by adding and selling a number of stakes in Berkshire Hathaway’s (BRK.B) portfolio.
The most remarkable theme of the 3 months ended September 30 was the continuing saga of Berkshire’s decreasing bank stocks. Buffett has been cutting the holding company’s rank in banks for multiple quarters, but he really made them double down in Q3. The selling was just the trimming of a position, in just about every other case, although Buffett did dump one stock in its entirety.
As always, the most interesting, is what Warren Buffett was buying. With the COVID-19 pandemic grabbing the world, perhaps it should not come as a surprise that Berkshire Hathaway added a handful of pharmaceutical stocks to its portfolio. Buffett also picked up a telecommunications company and a rare initial public offering (IPO).
We know what the considerable long-term investor of all time has been up to because the U.S. Securities.And Exchange Commission requires all investment managers with more than $100 million in assets to file a Form 13F quarterly to disclose any changes in share ownership. To the stock market, these filings add an important level of transparency and give Buffett-ologists a chance to get a bead on what he’s thinking.
Investors read into that as a vote of confidence,when Buffett starts a new stake in some company, or adds to an existing one. But it can spark investors to rethink their own investmentsif he cuts off his holdings in a stock.
Here’s the list of what Warren Buffett was buying and selling during the third quarter of 2020, based on the most recent 13F that the company filed on Nov. 16. And get this: Not all “Warren Buffett stocks” are actually his selections. Some smaller positions are believed to be handled by lieutenantsTodd Combs and Ted Weschler.