Market Overview

Warren Buffett Pushing More Cash To Equities; 'Big 5' Stocks Still At The Top

Share:
Warren Buffett Pushing More Cash To Equities; 'Big 5' Stocks Still At The Top
Related AAPL
Most FAANG Stocks Are In Bear Territory — But Still A Good Bet For Long-Term Investors
Trade Concerns Continue To Push Stock Market Lower
Nasdaq Leads Positive Reversal; These 5 Growth Stocks Aim To Lead Next Uptrend (Investor's Business Daily)
Related AXP
Benzinga's Top Upgrades, Downgrades For November 29, 2018
Tug-of-War: Volatile October Continues As Bulls, Bears Duke It Out
Berkshire Hathaway: Are Warren Buffett & Co. Losing Their Midas Touch? (Seeking Alpha)

Warren Buffett’s Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) filed its 13F for the first quarter on Tuesday, revealing what changes it made to its portfolio during the period. The company’s equity portfolio increased from approximately $166 billion at the end of 2017 to $169 billion.

Morgan Stanley’s Kai Pan doubts the company will issue dividends and noted that Buffett doesn't see Berkshire’s current valuation as cause for a large buyback, both of which drive his expectation that more cash will be spent buying equity.

Pan also took at look at what positions were cut and raised, highlighting a few of the more notable changes.

Get access to Benzinga’s full hedge fund coverage by searching keyword “13F” in Benzinga Pro.

Buffett’s Big 5 Stay At The Top

Berkshire’s top five positions remained the same through Q1. The group includes Apple Inc. (NASDAQ: AAPL), American Express Company (NYSE: AXP), Bank of America Corp (NYSE: BAC), The Coca-Cola Co (NYSE: KO) and Wells Fargo & Co (NYSE: WFC). Each holding has a market value of more than $10 billion.

As announced by Buffett ahead of Berkshire’s annual shareholder meeting, the company increased its stake in Apple from 166 million shares to 240 million shares. Since then the stock has returned 11 percent, adding $4.4 billion to Berkshire’s portfolio.

Berkshire cut its stake in Wells Fargo by approximately 7.8 million shares, which as of Tuesday’s close had a market value of over $427 million. The company still owns over 450 millions shares valued at more than $24.6 billion.

The Oracle of Omaha maintained his positions in American Express, Bank of America and Coca-Cola.

Other Notable Picks

Pan took notice of two other buys by Berkshire: Teva Pharmaceutical Industries Ltd (NYSE: TEVA) and Monsanto Company (NYSE: MON). Berkshire’s stake in Monsanto increased by 62 percent, while it more than doubled the number of Teva shares it holds.

It should be noted Teva is still a relatively small part of Berkshire’s overall portfolio, at around $700 million.

The company also dissolved its stake in IBM (NYSE: IBM) and cut its holdings in Verisk Analytics, Inc. (NASDAQ: VRSK) and Phillips 66 (NYSE: PSX) by 82 percent and 43 percent, respectively.

Related Links:

This Day In Market History: Warren Buffett Takes Control Of Berkshire Hathaway

Munger: Berkshire Has Been 'Too Restrained' In Buying Apple's Stock

Latest Ratings for AAPL

DateFirmActionFromTo
Dec 2018CitigroupMaintainsBuyBuy
Dec 2018Morgan StanleyMaintainsOverweightOverweight
Dec 2018RosenblattMaintainsNeutral

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

Posted-In: 13F Kai PanAnalyst Color Hedge Funds Top Stories Analyst Ratings Trading Ideas General Best of Benzinga

 

Related Articles (AAPL + AXP)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
QRVOKeyBancDowngrades0.0
SWKSKeyBancDowngrades0.0
CMAB. Riley FBRDowngrades84.0
COFBairdUpgrades101.0
CORJefferiesDowngrades102.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Guggenheim Downgrades TripAdvisor To Sell, Cites OTA Efforts, Competition And Valuation

The Makings Of CNBC's Morgan Brennan: Anthropology, Entrepreneurship And 'Rent'