Tag: Stock Portfolio

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Minority Stock Positions

Berkshire Hathaway Dives into Diageo: A New Addition to the Portfolio

(BRK.A) (BRK.B)

Berkshire Hathaway, the conglomerate led by Warren Buffett, has added Diageo plc to its ever-expanding portfolio. Diageo, a renowned liquor purveyor, boasts a vast array of over 200 brands, with a global presence in more than 180 countries.

In a recent filing with the U.S. Securities and Exchange Commission (SEC), Berkshire disclosed its acquisition of 227,750 shares of Diageo. This investment represents a relatively modest 0.04% ownership stake in the company, but it signifies Berkshire’s interest in the liquor giant.

Diageo, a name synonymous with top-quality beverages, offers a stellar lineup of best-selling brands, including the iconic Johnnie Walker Scotch whisky, Tanqueray gin, Smirnoff vodka, Guinness stout, and Baileys cream liqueur. These brands have long been favorites among consumers and have played a significant role in establishing Diageo as a leading player in the spirits industry.

Notably, Diageo has set ambitious goals for the future. Currently holding a 4.7% share of the global Total Beverage Alcohol (TBA) market, the company has its sights set on increasing that value share to an impressive 6% by the year 2030. This aspiration reflects Diageo’s commitment to growth and innovation within the dynamic world of beverages.

Moreover, Diageo recently announced a share buy-back program, demonstrating their dedication to creating value for their shareholders. This program aims to return up to $1.0 billion of capital to investors and is scheduled to be completed before June 26, 2024. The buy-back follows the successful completion of Diageo’s return of capital program during the second half of fiscal 2023, in which £0.5 billion of capital was returned to shareholders.

© 2023 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Minority Stock Positions

Surprising Turn of Events: Berkshire Hathaway’s Top Performer in 2023 is a Digital Financial Platform

(BRK.A), (BRK.B)

Berkshire Hathaway, the renowned conglomerate helmed by legendary investor Warren Buffett, is not typically associated with high-tech investments. However, this year’s top-performing stock in Berkshire’s portfolio might raise a few eyebrows. It’s none other than NU Holdings, one of the world’s largest digital financial services platforms.

Based in São Paulo, Brazil, NU has rapidly risen to become one of the globe’s premier digital financial service providers. Remarkably, it ranks as the fifth-largest financial institution in Latin America, boasting an impressive number of customers. This unforeseen success in NU is a testament to the changing landscape of finance and technology’s growing role in the industry.

During the second quarter of 2023, NU experienced an impressive surge in its customer base. The platform added a staggering 4.6 million new customers, a testament to its widespread appeal and competitive offerings. In a year-over-year comparison, NU saw strong growth of 18.4 million customers, reaching an overall total of 83.7 million customers worldwide by June 30th, 2023. This surge represents a remarkable 28% growth when compared to the previous year.

What makes this story even more intriguing is Berkshire Hathaway’s substantial stake in NU. The conglomerate owns a substantial 107,118,784 shares of the company, valued at approximately $845 million. This strategic investment is a clear indicator of Berkshire’s confidence in the future of digital financial services.

NU Holdings’ place in Berkshire Hathaway’s portfolio emphasizes the changing dynamics of the financial sector. Traditional investment giants are recognizing the potential of innovative digital platforms, which have demonstrated tremendous growth and resilience in today’s fast-paced, technology-driven world. As the global economy continues to evolve, such investments may become an increasingly common occurrence, surprising investors and industry experts alike.

© 2023 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Minority Stock Positions

Berkshire Boosts Stakes in Japanese Trading Houses

(BRK.A), (BRK.B)

Berkshire Hathaway’s subsidiary, National Indemnity Company, has announced an increase in its ownership stake in five prominent Japanese trading companies. The companies in question – Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo – hold significant positions in Japan’s economic landscape. Berkshire Hathaway’s investments in these companies are currently the only publicly traded holdings it possesses in Japan, and their combined value surpasses that of any other publicly traded stocks owned by the company outside of the United States.

Berkshire Hathaway’s ownership interest in each of the five companies now averages more than 8.5%, excluding treasury stock shares. This disclosure aligns with how Berkshire Hathaway reports its ownership in publicly traded U.S. companies. The conglomerate intends to maintain its Japanese investments for the long term. While the company might consider increasing its holdings in these companies, it has set a self-imposed limit of 9.9% ownership. Warren Buffett, the CEO of Berkshire Hathaway, has assured that any additional purchases beyond this threshold will only occur with the explicit approval of the investee’s board of directors.

Earlier this year, Mr. Buffett, accompanied by Gregory E. Abel, Berkshire’s Vice Chairman for Non-Insurance Operations, visited Japan to meet with the CEOs of the five companies. The discussions were fruitful, leaving both Mr. Buffett and Mr. Abel extremely pleased with the progress made. Their vision for the future may involve gradually increasing Berkshire Hathaway’s stake in each of these companies to 9.9% ownership, if prices warrant it.

Berkshire Hathaway continues to demonstrate its long-term commitment to the Japanese market and its confidence in the potential of these esteemed trading companies.

© 2023 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Minority Stock Positions

Berkshire Hathaway Sells Last of Its P&G Shares

(BRK.A), (BRK.B)

Berkshire Hathaway has sold the last of its stake in consumer goods corporation Procter & Gamble.

As of September 30, 2022, Berkshire still held 315,400 shares of the company, but that position has now been sold.

The sale was reported by NASDAQ in their change of institutional ownership of PG stock as of 9/30/2022.  

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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BYD

BYD’s July EV Sales Up 183% Over 2021

(BRK.A), (BRK.B)

In July 2022, Berkshire Hathaway-backed BYD sold a total of 162,530 new energy vehicles, which includes 162,214 new energy passenger vehicles.

The sales represent a 183% YOY increase from July 2021.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares for $232 million. It’s an investment that has paid off handsomely. Berkshire’s original investment of $232 million had grown in value to $7.69 billion as of December 31, 2021.

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and BYD, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Stock Portfolio

Berkshire Hathaway Closing in on 20% Stake in Occidental Petroleum

(BRK.A), (BRK.B)

A dip in the price of Occidental Petroleum had Warren Buffett adding more purchases of OXY shares on July 11, 12 and 13. The move comes as crude oil prices have dipped 9 percent this week.

In its latest Form 4 filing, Berkshire spent roughly $250 million for 4.3 million shares of OXY stock at prices ranging from $56.9406 to $59.8491 per share.

After these purchases, Berkshire holds 179,741,891 shares of OXY common stock.

The purchases raise Berkshire’s stake to 19.2%, which has it at the cusp of a 20% stake that would see Occidental Petroleum’s earnings added to Berkshire’s earnings. Currently, only the dividends are added to Berkshire’s financials.

In addition to its stake in OXY common stock, Berkshire also holds 100,000 series A preferred stock shares and warrants that Berkshire can exercise for roughly 84M shares of common stock at $59.624 per share.

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Minority Stock Positions Stock Portfolio

Berkshire Hathaway Adds to Its Occidental Petroleum Stake

(BRK.A), (BRK.B)

A dip in the price of Occidental Petroleum has Warren Buffett resuming his purchases of OXY shares on May 10 and 11.

In its latest Form 4 filing Berkshire made the following purchases:

Common Stock 05/10/2022 716,355 $57.3161
Common Stock 05/02/2022 185,419 $57.3386

After these purchases, Berkshire holds 143,162,392  shares of OXY common stock.

In addition to its over 15% stake in OXY common stock, Berkshire also holds 200,000 series A preferred stock shares and warrants that Berkshire for roughly 84M shares of common stock at $59.624 per share.

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Minority Stock Positions Stock Portfolio

Berkshire Hathaway Adds to Its Occidental Petroleum Stake

(BRK.A), (BRK.B)

Warren Buffett’s jump into oil and gas producers, which has seen him take huge stakes in Occidental Petroleum and Chevron, continued this week with $350 million of additional purchases of OXY shares on May 2 and 3.

In its latest Form 4 filing Berkshire Hathaway made the following purchases:

Common Stock 05/02/2022 736,516 $55.9957
Common Stock 05/02/2022 2,510,957 $56.7255
Common Stock 05/02/2022 1,918,019 $57.562
Common Stock 05/02/2022 701,626 $58.3745
Common Stock 05/03/2022 20,500 $57.7843

After these purchases, Berkshire Hathaway holds 142,260,618 of OXY common stock.

In addition to its stake in OXY common stock, Berkshire also holds 100,000 series A preferred stock shares and warrants that Berkshire can exercise for roughly 84M shares of common stock at $59.624 per share.

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Minority Stock Positions Stock Portfolio

Berkshire Hathaway Bullish on Chevron

(BRK.A), (BRK.B)

In addition to taking a fourteen percent stake in Occidental Petroleum, Berkshire Hathaway has made a dramatic increase to its stake in Chevron in the first quarter of 2022.

Berkshire’s $4.5 billion position in Chevron on December 31,2021, has more than quintupled to $25.9 billion as of March 31, 2022. The move makes Chevron Berkshire’s fourth largest holding behind only its stakes in Apple, Bank of America and American Express.

The position, which was revealed in Berkshire’s latest filing, comes as the oil and gas giant quadrupled its earnings in the first quarter of 2022, its highest quarterly profit in the past ten years.

Chevron’s stock has rocketed up 31.37 year-to-date and its dividend is yielding 3.63%.

Chevron’s $308 billion market capitalization makes it an easy opportunity for Berkshire to put a large portion of its cash position to work.

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Minority Stock Positions Stock Portfolio

BYD UK and ADL Receive 195 Bus Order For London

(BRK.A), (BRK.B)

Berkshire Hathaway-backed BYD’s subsidiary BYD UK and their joint venture partner Alexander Dennis Limited (ADL) will deliver the UK’s largest ever electric bus order. The order has been placed by RATP Dev London, one of Transport for London (TfL)’s principal bus operators, for a total of 195 single and double deck vehicles.

With this order, RATP Dev London confirms its commitment to supporting TfL’s electrification plan for London’s bus network, a key objective of the Mayor’s Transport Strategy for 2018, under which all TfL buses will be zero emissions by 2037, with all of London’s transport becoming emissions free by 2037.

Deliveries of RATP Dev London’s latest BYD ADL fleet will begin in the summer. 68 BYD ADL Enviro200EV single decks – including 21 compact 33-foot models – and 127 BYD ADL Enviro400EV double decks will be based at RATP Dev London’s Fulwell, Harrow and Shepherd’s Bush depots to serve routes in the west of the capital. The buses will join 36 existing BYD ADL single decks in service since 2018 and 29 BYD ADL double decks delivered last year. Feedback from RATP Dev London on these in-service vehicles has been very positive, with the double deck BYD ADL Enviro400EV in particular delivering exceptional reliability on 24-hour route operations.

BYD is a global leader in batteries, energy management and electric mobility. ADL is a subsidiary of leading independent global bus manufacturer NFI Group Inc. (NFI).

Catherine Chardon, Managing Director of RATP Dev London, said, “Electrification is a critical part of our business and partnership with Transport for London (TfL). We launched our two first 100% electric routes less than two years ago, as well as London’s first fully electric 24-hour double-decker bus route last year. By the beginning of 2022, we will operate 15 zero emission routes and have five of our garages converted to electric. This agreement will help RATP Dev London position itself as the leading electric bus services provider in the city. We are proud to work hand in hand with TfL to help London achieve its sustainability goals.”

BYD UK Managing Director, Frank Thorpe, said, “Naturally, this is a hugely significant moment in the development of the BYD brand in the UK. Public transport in the capital often provides the blueprint for other towns and cities and the fact that a major operator like RATP Dev is making such a substantial commitment to eMobility will, I believe, resonate with Local Authorities across the UK. The increasing electrification of routes by TfL operators is delivering long-term productivity to their fleets and real environmental benefits for Londoners.”

Paul Davies, ADL President & Managing Director, said: “RATP Dev London’s record order is a resounding vote of confidence in our British-built electric buses and ADL’s proven ability to tailor these to authorities and operators’ requirements. These buses will build on our pioneering work in support of Transport for London’s Bus Safety Standard with a focus on safety for drivers, passengers and other road users.”

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares for $232 million. It’s an investment that has paid off handsomely. Berkshire’s original investment of $232 million had grown in value to $5.897 billion as of December 31, 2020.

© 2021 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and BYD, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.