Getty Images / Bill Pugliano
Warren Buffett’s Berkshire Hathaway revealed its US stock portfolio as of June 30 on Monday.
Berkshire boosted its Apple, Chevron, and Occidental Petroleum stakes, and tweaked its bank bets.
Here’s a closer look at the three key moves it made in the second quarter.
Warren Buffett’s Berkshire Hathaway released a quarterly portfolio update on Monday, revealing its US stockholdings as of June 30. The famed investor’s conglomerate bolstered its biggest position, ramped up its energy wagers, and tweaked its financial bets in the period.
Another bite of Apple
Apple shares traded as low as $129 in June, nearly 30% below their peak of $183 at the start of this year. Buffett and his team likely saw the stock as a bargain, given they snapped up nearly 4 million more shares of the iPhone maker in the second quarter, raising their stake to 895 million shares or 5.6%.
Berkshire counts Apple as its number-one holding, accounting for over 40% of the conglomerate’s $300 billion stock portfolio. The position has jumped in value from $122 billion to $155 billion in the past six weeks alone, thanks to Apple’s stock price rebounding by 27% in that period.
In recent years, Buffett has trumpeted Apple as a “family jewel” and “probably the best business” he knows. Berkshire spent about $36 billion building its stake in the tech giant between 2016 and 2018, meaning it has more than quadrupled his money on paper in a few short years.
Drill, baby, drill
Berkshire has shoveled upwards of $25 billion into Chevron and Occidental Petroleum this year. The aggressive buying suggests Buffett and his team are bullish on fossil fuels, and happy to capitalize on the surge in energy prices this year, which has been fueled by Russia’s invasion of Ukraine disrupting global energy supplies.
Buffett’s company revealed it bought about 2.3 million Chevron shares last quarter, after ramping up its position in the oil major from 38 million shares to 158 million in the first quarter. Chevron’s stock price has surged 31% this year, helping to lift the value of the enlarged position to around $25 billion today.
Berkshire listed 159 million Occidental shares in its portfolio at the end of June. However, filings show that Buffett’s company has increased its stake to 188 million shares since then, giving it 20% ownership of the oil-and-gas explorer and producer.
It’s worth noting that Berkshire also owns $10 billion of Occidental preferred stock, and holds warrants allowing it to buy 83.9 million common shares at a fixed cost of $5 billion. It received both in exchange for financing Occidental’s takeover of Anadarko Petroleum in 2019.
Banking on the banks
Berkshire has revamped its bank holdings over the past two years. It exited sizeable positions in JPMorgan, Wells Fargo, and Goldman Sachs, boosted its massive stake in Bank of America, and established a nearly $3 billion position in Citigroup in the first quarter.
Buffett and his team continued to tweak their financial bets last quarter. They more than tripled their Ally Financial holdings to 30 million shares, worth $1.1 billion at the bank’s current stock price. On the other hand, they trimmed their US Bancorp wager by 5% to around 120 million shares, worth $5.9 billion today.
It’s unclear why Berkshire has swapped out some banks for others, as Buffett hasn’t explained the changes publicly. Still, it’s clear that he continues to see financial stocks as a key segment of Berkshire’s stock portfolio.
Here’s a pie chart showing the key stocks in Berkshire’s portfolio at the end of June, and how much they were worth at that time:
Markets Insider/SEC filings