Warren Buffett’s Berkshire Hathaway (BRKB) bought shares of Taiwan Semiconductor (TSM) for the first time during the third-quarter bear market, while dumping store capital (STOR) entirely.
What Warren Buffett Bought, Sold In Q3
Buffett-led Berkshire picked up roughly 60 million shares of Taiwan Semiconductor worth more than $4.1 billion, according to Berkshire’s latest 13F filed late Monday, as tracked by whalewisdom.com.
In October, Taiwan Semi, also known as TSMC, the world’s largest contract chipmaker, delivered a beat-and-raise for the third quarter, defying weakness in the chip sector. TSM stock popped 6.2% in late Monday trading.
Besides Taiwan Semi, Berkshire Hathaway opened positions in Louisiana Pacific (LPX) and Jefferies Financial Group (JEF) during the Q3 bear market. It bought 5.8 million shares of LPX stock worth nearly $297 million and roughly 433,000 shares of JEF stock worth nearly $13 million.
LPX stock soared 9.8% in late trading. JEF punched up 5.3% late Monday.
During the quarter, Berkshire’s existing stakes grew into several stocks: in Occidental Petroleum (OXY) by 22%; Paramount Global (PARA) by 16%; Celanese (CE) by 6%; RH (RH), formerly Restoration Hardware, by 8%; other chevrons (CVX) by 2%. The conglomerate bought more than 35.8 million more shares of OXY stock and more than 12.7 million shares of PARA stock.
While exiting Store Capital last quarter, Berkshire reduced existing holdings in several stocks: in U.S. Bancorp (USB) by 55%; Bank of New York Mellon (BK) by 14%; Activision Blizzard (ATVI) by 12%; General Motors (GM) by 5%; other Kroger (KR) by 4%.
The Q3 Berkshire earnings report on Nov. 5 had already revealed that Buffett was a net buyer of stocks, including Occidental Petroleum (OXY), during a volatile Q3. But investors awaited the 13F filing, which arrived Monday after the market close, to learn more about which stocks Buffett bought and sold last quarter.
The S&P 500 index ended Q3 in bear market territory for a second consecutive quarter.
Top Berkshire Hathaway Stock Holdings
In Q3, Berkshire kept several top holdings in Warren Buffett’s Dow stocks-heavy portfolio steady, according to the 13F filing late Monday.
The conglomerate’s top stock holding by market value is Apple (AAPL). but Bank of America (BAC) is the No. 1 stock by number of shares held. In addition, American Express (AXP), Coke (KO) and Kraft Heinz (KHC) count among Buffett’s biggest stock holdings.
A smaller but notable holding is Amazon (AMZN). Berkshire maintained positions in each of these holdings last quarter.
Warren Buffett has a long-term track record of beating the market with his picks. The Berkshire chief has earned a reputation as a buy-and-hold investor, holding stocks for years or even decades. The company has held AAPL stock since Q1 2016 and KO stock since Q1 2001, for example.
Investors track Berkshire’s 13F filings to see where the investing legend is putting his money to work in the stock market. A new Warren Buffett stock buy can send shares of that company soaring.
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In Q3, Warren Buffett’s stock purchases exceeded stock sales by $3.7 billion, including $2 billion invested in OXY stock. Berkshire Hathaway also repurchased $1.05 billion of its own shares.
Amid Q3 volatility, Berkshire recorded a $10.5 billion loss on equity investments. Meanwhile, its cash hoard grew from $105.4 billion at the end of June to $109 billion at the end of September.
Thus far in 2022, Berkshire has picked up the pace of investment activity. It notably raised its energy bet following the Feb. 24 Russian invasion of Ukraine, which disrupted global oil and gas supplies. In 2021, Berkshire Hathaway mostly played defense as the stock market marched higher.
B-class shares of Berkshire stock dipped 0.3% on the stock market today. Apple stock fell 0.95%.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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