- Warren Buffett’s Berkshire Hathaway invested in Floor & Decor and Royalty Pharma last quarter.
- The investor’s company left Merck and cut its shares in AbbVie and Bristol-Myers Squibb.
- Berkshire also trimmed its positions in Visa, Mastercard and Charter Communications.
Warren Buffett’s Berkshire Hathaway built small shares in Floor & Decor and Royalty Pharma in the third quarter, regulatory applications revealed Monday. The famous investor’s company also took a knife to several pharmaceutical and financial holdings during the period.
Berkshire – which owns dozens of companies, including See’s Candies and Geico, and has multi-billion stakes in Apple, Coca-Cola and other public companies – revealed a $ 98 million position in Floor & Decor and a $ 475 million stake in Royalty Pharma pr. 30th of September.
Buffett’s firm also left Merck and cut its AbbVie and Bristol-Myers Squibb positions last quarter, despite first being established a few quarters ago. In addition, it trimmed its Visa, Mastercard, Charter Communications and Marsh & McLennan holdings, among others.
Berkshire’s limited adjustments to its portfolio were announced in last quarter’s earnings. They showed that the conglomerate spent $ 1.4 billion on shares and sold $ 3.4 billion worth during the period, meaning it sold net $ 2 billion in shares during the period.
It may seem like a lot, but Berkshire has a stock portfolio of around $ 300 billion. In addition, the company boasted $ 149 billion in cash and short-term investments at the end of September.
Buffett has for years longed to spend a portion of Berkshire’s cash on a large stake in a public company or an acquisition the size of an elephant. However, he has struggled to find good deals with stocks close to record highs, and private equity firms and SPACs are pushing up corporate prices.
In the absence of good deals, Buffett has plowed billions of dollars into stock buybacks. In fact, his company is on track to repurchase its own shares for a record $ 25 billion this year.
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