Berkshire Hathaway's
First the big bites
|
Company Name |
No. Shares Bought Q2 2010 |
% Share Increase vs. Q1 2010 |
Estimated $Purchase* |
Shares Held by Berkshire Hathaway 6/30/10 |
|---|---|---|---|---|
|
Johnson & Johnson |
17.4 million |
73% |
$1.1 billion |
41.3 million |
|
Fiserv |
4.4 million |
N/A – New Holding |
$219 million |
4.4 million |
Source: Company reports, Yahoo! Finance.
*Based on average daily close prices during Q2 2010.
While Buffett sold J&J shares as recently as last quarter, he apparently had a change of heart in the second quarter, doubling down on the company's shares. With a steady stream of product recalls, including infant's and children's versions of its marquee Tylenol brand, J&J has been under pressure, and its shares have underperformed both the S&P 500 and the Dow over the last year. The Oracle must see opportunity in this situation, and apparently so do many Fools, as the company sports a five-star CAPS rating.
Fiserv, a new holding for Berkshire, is an information technology and back-end services provider to the financial services industry. With 16,000 customers and a focus on essential but dull activities like check clearing, Fiserv enjoys the benefits of economies of scale and high customer switching costs, characteristics that both Buffett and Motley Fool Inside Value advisor Joe Magyer favor.
Small nibbles
In addition to its J&J and Fiserv purchases, Berkshire Hathaway added small amounts to four existing positions. A consistent buyer of Becton Dickinson and Iron Mountain, Berkshire bought more of both for the third straight quarter. Small additions were also made to its position in pharmaceuticals giant sanofi-aventis and Nalco, best known recently as the maker of chemicals used to disperse oil in the Gulf of Mexico following the BP spill.
The selling
Buffett continued to shrink his stake in ConocoPhillips
|
Company Name |
No. Shares Sold
|
% Share Decrease vs. Q1 2010 |
Estimated Sale Proceeds* |
Shares Held by Berkshire Hathaway 6/30/10 |
|---|---|---|---|---|
|
ConocoPhillips |
5.1 million |
15.0% |
$271 million |
29.1 million |
|
Procter & Gamble |
1.0 million |
1.3% |
$63 million |
78.1 million |
|
Kraft |
1.5 million |
1.4% |
$45 million |
105.2 million |
|
M&T Bank |
199,000 |
3.6% |
$17 million |
5.4 million |
Source: Company reports, Yahoo! Finance.
* Based on average daily close prices during Q2 2010.
Surprises of omission
When I opened Berkshire's latest filing, I expected to see continued buying of Republic Services, a garbage hauler Buffett began buying last year, but no activity was reported.
In addition, Buffett reported no sales of Moody's shares, likely a judicious move given his testimony before the Financial Crisis Inquiry Commission in June. Berkshire has been reducing its Moody's stake over the last year, and I expect those sales to resume next quarter.
What are your thoughts on Buffett's recent moves or guesses about what's next on the Oracle's buy (or sell) list? Let us know in the comments section below.
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