Warren Buffett and his team have made great changes to their investment strategy during the quarter ending December 31, signifying that they remain in continuous search of attractive opportunities in a flourishing market.
Towards the end of December, Berkshire Hathaway, the investment organization of Warren Buffett, brought down its stake in Bank of America to a mere 680 million shares, according to a filing with the regulatory body.
As a result of this decline, Berkshire’s figure dropped from over 13% to under 9%. The value of this once-prominent holding, second only to Apple, fell from about 41 billion dollars to less than 30 billion dollars.
Also, Buffett, together with his investment managers Todd Combs and Ted Weschler, trimmed their stakes in other banking stocks. The sell-down saw 74% of their Citigroup shares disappear, along with 18% of Capital One investment and 54% of Nu Holdings.
They also sold off parts of the investments in Charter Communications, Louisiana-Pacific, and T-Mobile US. In the most shocking move, the Berkshire team completely divested from Ulta Beauty, a position they acquired in the second quarter of last year.
They repaid their positions in both the SPDR S&P 500 ETF Trust and the Vanguard S&P 500 ETF, both of which were initiated a few years ago.
Berkshire has more bad news but also some good news. Buffett and his team created a new investment worth $ 1.2 billion in Constellation Brands company producing Corona and Modelo beers plus other alcoholic beverages.
They also grew their stake in Domino’s Pizza up by 86% and Pool Corp, up by 48 % after establishing positions during the previous quarter. They further increased their investments in Occidental Petroleum, Verisign, and SiriusXM.
It can be expected that with numerous cuts, overall value should end at over $267 billion in U.S. stock portfolios under Berkshire.
Business Journalist
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