Warren Buffett’s Berkshire Hathaway: Major Moves in the Latest Quarter

Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) has recently submitted its 13F form, revealing the company’s latest investment positions. This document allows investors to track the stocks that Berkshire has been buying and selling, providing insights into Buffett’s investment strategies. Many investors often follow Berkshire’s lead, eager to replicate the moves of this legendary investor.

Buffett’s Longstanding Affection for Bank Stocks

Buffett has a well-documented affinity for bank stocks, which are frequently represented in Berkshire’s portfolio. One of his most significant holdings is in Bank of America (NYSE: BAC), the second-largest bank in the United States by assets. Investing in Bank of America is seen as a strategic way to capitalize on the long-term growth and success of the American economy. Buffett often encourages investors to “bet on America.” However, in a surprising turn of events last quarter, Berkshire Hathaway sold off more than 117 million shares of Bank of America stock.

Despite this reduction, Berkshire still retains approximately a 9% stake in Bank of America, making it the company’s third-largest holding, following Apple and American Express. This reduction is particularly noteworthy, as it may not solely reflect Buffett’s outlook on Bank of America but could also indicate a broader strategy to decrease Berkshire’s exposure to the banking sector as a whole.

Significant Reductions in Other Bank Stocks

Following the sale of Bank of America shares, the next largest move for Berkshire was the reduction of over 46 million shares of Nu Holdings (NYSE: NU), a company that provides digital banking services. Nu Holdings boasts an impressive customer base of 114 million across various markets, including Mexico, Brazil, and Colombia. The company has demonstrated rapid growth, reporting a remarkable 58% revenue increase in 2024. After the stock sale, Berkshire still holds more than 40 million shares of Nu Holdings, but this position accounts for just 0.1% of its overall portfolio.

Another notable reduction was in Citigroup (NYSE: C), a major player in the banking sector. Citigroup has been undergoing restructuring efforts in recent years to enhance its financial performance, including job cuts this year. Buffett’s decision to sell shares of Citigroup may suggest a lack of optimism regarding the bank’s turnaround or could simply be part of a broader strategy to reduce exposure to bank stocks. Following the sale, Berkshire now holds less than 15 million shares of Citigroup, which represents one of the more drastic reductions made during the past quarter. Citigroup currently constitutes 0.4% of Berkshire’s overall portfolio.

Buffett’s Bullish Stance on Sirius XM

In contrast to the reductions in bank stocks, one position that Buffett remains optimistic about is Sirius XM (NASDAQ: SIRI). This broadcasting company saw the largest increase in Berkshire’s portfolio last quarter, with an addition of over 12 million shares. Sirius XM generates revenue primarily through subscriptions to its satellite radio service. With minimal competition in the market, the company has a robust business model that likely appeals to Buffett. Additionally, Sirius XM has consistently reported operating profits in each of the past four quarters, making it a solid investment choice. Currently, Sirius XM represents 1% of Berkshire’s overall portfolio.

Conclusion: A Strategic Shift for Berkshire Hathaway

In summary, Warren Buffett’s Berkshire Hathaway has made significant moves in the latest quarter, including substantial reductions in key bank stocks and a bullish stance on Sirius XM. These strategic decisions reflect Buffett’s ongoing efforts to navigate the ever-changing landscape of the stock market. Investors will undoubtedly be watching closely to see how these moves impact Berkshire’s overall performance in the coming months. For more detailed insights, you can read the original article here.