Key Morningstar Metrics for Berkshire Hathaway
Berkshire Hathaway Inventory Holdings Replace
Berkshire Hathaway BRK.A / BRK.B reported just a few modifications in its 13F fairness funding portfolio for the second quarter, together with updating traders about a number of holdings that they’ve constructed up over the previous two quarters.
Why it issues: Primarily based on our estimates, web gross sales got here in at round $2.6 billion (composed of $7.0 billion of estimated gross sales and $4.5 billion of estimated purchases). Whereas this diverse from the insurer’s reported web gross sales of $3.0 billion ($6.9 billion/$3.9 billion) in its latest 10-Q, the 13F solely contains US reportable securities.
- Among the many important modifications made throughout the June quarter was the sale of a further 20.0 million shares of Apple AAPL for an estimated $4.3 billion, in addition to the sale of one other 26.3 million shares of Financial institution of America for an estimated $1.2 billion. Berkshire has been promoting Apple because the begin of September 2023, and Financial institution of America BAC because the starting of July 2024. At this level, the corporate has decreased its Apple stake by 69%, locking in an estimated achieve of $99.6 billion. It has decreased its Financial institution of America stake by 41%, reserving an estimated realized achieve of $12.1 billion.
- The insurer additionally put new cash to work in UnitedHealth Group UNH, buying 5.0 million shares for an estimated $2.1 billion. Shares of UnitedHealth Group declined 40% throughout the second quarter and have fallen one other 13% because the begin of the third quarter, on rising medical prices, disappointing earnings, and investigations into its billing practices. Different new cash purchases included Lamar Promoting LAMR (1.2 million shares for an estimated $138 million) and Allegion (0.8 million shares for an estimated $107 million). Berkshire additionally revealed three thriller shares—D.R. Horton DHI, Lennar LEN, and Nucor NUE (which was additionally a brand new cash buy throughout the second quarter)—that it had been investing in because the begin of the yr, having obtained permission from the SEC to maintain these purchases hidden whereas it constructed up its stakes.
Berkshire’s Thriller Inventory Purchases
Wanting extra carefully on the three thriller shares, D.R. Horton is a reputation that Berkshire held briefly throughout 2023, buying 6.0 million shares for an estimated $660 million within the second quarter after which promoting all of them for an estimated $775 million within the fourth quarter. This time round, it appears to be like just like the insurer picked up 1.5 million shares for an estimated $203 million within the first quarter after which bought off 27,000 shares for an estimated $3.3 million.
Lennar is one other identify that Berkshire has acquired beforehand, choosing up 0.2 million shares for an estimated $15 million within the second quarter of 2023. Nonetheless, on this case, the insurer retained the holdings. Beginning within the first quarter of 2025, although, Berkshire acquired a further 1.8 million shares for an estimated $222 million after which augmented this with the acquisition of 5.3 million shares within the second quarter for an estimated $575 million.
As for Nucor, this was a brand new cash buy for the agency, with Berkshire buying 5.8 million shares for an estimated $740 million within the first quarter of 2024 after which including one other 0.9 million shares for an estimated $100 million within the second quarter. Nucor has been navigating a dynamic metal market this yr (aided by tariffs on imported metal), with an elevated deal with strategic investments and operational enhancements.
Editor’s Word: This evaluation was initially printed as a inventory word by Morningstar Fairness Analysis.
The creator or authors don’t personal shares in any securities talked about on this article.
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