Want to invest like Buffett? Here are his 3 latest buys
Famed investor Warren Buffett recently added three new names to his holdings: Activision Blizzard, Liberty Media and Nu Holdings.
Warren Buffet’s Berkshire Hathaway has filed its latest trades with the SEC, giving investors an insight into how he is positioning his holdings post-COVID-19 lockdowns.
Based on Monday’s filing, which covers the fourth quarter of 2021, Berkshire Hathaway (BRK.B) is looking to buy stocks that fell off during the pandemic, while taking profits on some of his winners.
Berkshire Hathaway bought $4,488,055,000 worth of Chevron (CVX) shares, while selling nearly 80% of the shares it owns in AbbVie (ABBV) and Bristol-Myers Squibb (BMY). The fund also trimmed positions in payment services Visa (V) and Mastercard (MA).
All are trading near all-time highs at the moment.
Here are Buffett’s three new positions:
Activision Blizzard (ATVI)
In perhaps his greatest short-term win over the quarter, Buffett bought stocks in Activision Blizzard prior to Microsoft announcing it is purchasing the company.
This was a new position for the fund.
According to the release, Berkshire owns 14.66 million shares valued at $975 million in the video gaming company.
Just a couple of months after Buffett’s buy, Microsoft announced its acquisition of the Call of Duty and Crash Bandicoot maker which saw the shares rocket up 255 to $95 per share. It has since fallen to about $81.
Buffett’s fund could potentially cash in from this windfall, with shares in Activision Blizzard reaching a low of $56.40 as the company faced legal challenges.
Liberty Sirius XM Group (LSXMK)
Another stock Buffett’s fund bought into is Liberty Media.
Perhaps unloved during lockdowns because of its stake in Formula One, Sirius XM and the Atlanta Braves, shares fell to as low as $31 during the height of the pandemic.
Since then, the price has recovered to $53.
Removal of COVID-related restrictions could potentially help some of the company’s ventures moving forward.
Nu Holdings (NU)
Berkshire Hathaway also announced a new stake in early stage technology company Nu Holdings. As of the filing, the company now owns 107,118,784 shares in the tech startup. This was not a post-lockdown move, as it was made December 10.
The Brazil-based company, which is listed on the NYSE, offers services in five financial areas: spending, savings, investing, borrowing and insurance.
The $5 billion dividend play
Buffett also hasn’t forgotten about his investment favorites.
In a move that suggests Buffett believes his winners will keep on winning, he’s continuing to buy shares which have seen a notable increase in price over the past 12 months.
Most notably was his increase in Apple (AAPL) holdings. The fund holds more than 5% of Apple’s outstanding shares.
Overall he is expected to now make over $5 billion per year in dividends alone, with the the vast majority of it coming from his shares of Bank of America (BAC), Occidental Petroleum (OXY), Apple, Coca-Cola (KO), Kraft- Heinz (KHC) and Verizon (VZ) communications.
The market didn’t respond positively to the filing. Shares in BRK.B stock slipped 1.52% to $314.28, the third straight day of losses. It’s worth highlighting though, shares are only a few dollars below the all-time high set in January.
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