Berkshire Hathaway Trims HP Stake and Exits Bet on General Motors
Berkshire Hathaway Inc., the conglomerate led by Warren Buffett, trimmed its stake in HP Inc. and exited its bet on General Motors Co. in the third quarter.
Berkshire Hathaway’s Third Quarter
Berkshire Hathaway reported its holdings in a regulatory filing on Monday, November 15th. The filing showed that Berkshire Hathaway reduced its stake in HP by about 8.2 million shares, leaving it with about 43.2 million shares. The filing also showed that Berkshire Hathaway sold its entire stake in General Motors, which had been worth about $800 million at the end of the second quarter.
Berkshire Hathaway’s Investment Strategy
Berkshire Hathaway is known for its long-term investment strategy, which has been successful for decades. Buffett has said that he prefers to invest in companies that have strong competitive advantages and are run by competent management teams.
Berkshire Hathaway’s Recent Investments
Berkshire Hathaway has been making some big investments in recent years. In 2019, it invested $10 billion in Occidental Petroleum Corp. and $4 billion in Bank of America Corp. In 2020, it invested $6 billion in Barrick Gold Corp. and $2.1 billion in Snowflake Inc.
Berkshire Hathaway’s Portfolio
Berkshire Hathaway’s portfolio is currently worth about $250 billion. Its largest holdings are Apple Inc., Bank of America, and Coca-Cola Co. It also owns stakes in American Express Co., Wells Fargo & Co., and U.S. Bancorp.
Berkshire Hathaway’s Performance
Berkshire Hathaway’s stock has outperformed the S&P 500 index over the past five years. The stock is up about 20% since the beginning of 2020, while the S&P 500 is up about 15%.
Conclusion
Berkshire Hathaway is a long-term investor that has been successful for decades. In the third quarter, it trimmed its stake in HP and exited its bet on General Motors. It has also made some big investments in recent years, including in Occidental Petroleum, Bank of America, Barrick Gold, and Snowflake. Its portfolio is currently worth about $250 billion, and its stock has outperformed the S&P 500 index over the past five years.