Please ensure Javascript is enabled for purposes of website accessibility

Why Verizon Stock Climbed Today

By Evan Niu, CFA - Feb 17, 2021 at 1:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Oracle of Omaha has accumulated a meaningful stake in the telecommunications juggernaut.

What happened

Shares of Verizon Communications (VZ -0.49%) climbed by as much as 5% on Wednesday after Berkshire Hathaway (BRK.A 1.28%) (BRK.B 1.25%) disclosed a new stake in the company. Warren Buffett's investment holding company filed its quarterly form 13F report showing that it now holds over 146.7 million shares. At 12:45 p.m. EST today, shares were up 4.6%.

So what

A few months ago, when Berkshire Hathaway filed its last 13F, it noted that the regulatory filing omitted some confidential information after getting permission from the Securities and Exchange Commission. The agency can allow institutional investors to file confidentially if the disclosure has the potential to move the market and the investor is still in the process of accumulating a position.

Hans Vestberg discussing 5G on stage

Verizon CEO Hans Vestberg. Image source: Verizon.

Buffett is one of the most widely followed investors in the world, so the market often closely watches his activities, particularly when it comes to newly established positions. The confidential filing triggered considerable speculation in recent months, and investors now know that the telecommunications company was one of the picks.

Now what

Berkshire Hathaway has also now filed an amended 13F for the third quarter, unveiling all of the confidential information. In addition to Verizon, Buffett was also buying stakes in oil giant Chevron and consulting firm Marsh & McLennan during the third quarter. Berkshire Hathaway was holding 58.3 million Verizon shares at the end of the third quarter, meaning that the company bought around 88.4 million shares during the fourth quarter.

Verizon largely fits the type of value stock that Buffett prefers. Big Red trades at low valuations while also paying a generous 4.6% dividend yield funded by consistent cash flows.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Verizon Communications Inc. Stock Quote
Verizon Communications Inc.
$50.99 (-0.49%) $0.25
Berkshire Hathaway Inc. Stock Quote
Berkshire Hathaway Inc.
$468,805.04 (1.28%) $5,915.04
Berkshire Hathaway Inc. Stock Quote
Berkshire Hathaway Inc.
$312.50 (1.25%) $3.86
Chevron Corporation Stock Quote
Chevron Corporation
$176.59 (0.67%) $1.18
Marsh & McLennan Companies, Inc. Stock Quote
Marsh & McLennan Companies, Inc.
$157.09 (3.02%) $4.60

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.