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Warren Buffett's new positions, according to Berkshire's (BRK.A, BRK.B) latest 13-F, include...

Warren Buffett's new positions, according to Berkshire's (BRK.A, BRK.B) latest 13-F, include 27.1M shares of Phillips 66 (PSX) and 2.8M shares of National Oilwell Varco (NOV), but he dumped his entire 7.7M-share position in Intel (INTC) and sold two-thirds of his 29M shares in Johnson & Johnson (JNJ).
Comments (35)
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    How long did he hold INTC? Not "long" if memory serves me....
    14 Aug 2012, 04:51 PM Reply Like
  • s2herring
    , contributor
    Comments (28) | Send Message
     
    What does he know about INTC that we don't?
    14 Aug 2012, 04:52 PM Reply Like
  • Old Trader
    , contributor
    Comments (5726) | Send Message
     
    Given Warren's self-proclaimed (and universally acknowledged) dislike/disdain/lack of knowledge for tech stocks, I think that its more of a "surprise" that he ever bought INTC than that he's selling it.

     

    The JNJ news is actually somewhat more unsettling, to my mind.
    14 Aug 2012, 05:14 PM Reply Like
  • andische
    , contributor
    Comments (5) | Send Message
     
    Buffett did not buy Intel.
    It was Todd Combs.
    14 Aug 2012, 05:58 PM Reply Like
  • batitude
    , contributor
    Comments (118) | Send Message
     
    Those kinds of sales would have kept the price of INTC and JNJ down...
    14 Aug 2012, 05:06 PM Reply Like
  • SweetGeezer
    , contributor
    Comments (4) | Send Message
     
    Yes ...and What is going on with JnJ? Selling that many shares at once ~ is Not just ~ taking Profits!
    14 Aug 2012, 05:10 PM Reply Like
  • Walt17
    , contributor
    Comments (415) | Send Message
     
    Buffet has previously said JNJ "has messed up a lot the last few years" and that he would consider selling to raise cash for other investments. So this move is really just putting acing on his view of the stock.
    14 Aug 2012, 05:41 PM Reply Like
  • Donby2
    , contributor
    Comments (2) | Send Message
     
    Should we be worried?
    14 Aug 2012, 06:04 PM Reply Like
  • J.D. Welch
    , contributor
    Comments (1990) | Send Message
     
    Have you heard anything from Intel's management that should make you worried? My experience is that Intel's management is very forthcoming with information about guidance. It's been less than a month since the Q2 earnings report, and Berkshire didn't have THAT big of a stake in INTC (in the grand scheme of things). Perhaps they're just taking profits since they bought earlier in 2011, and redeploying for something THEY think is better (but as has been pointed out, Buffett doesn't like nor understand technology companies)...
    14 Aug 2012, 07:10 PM Reply Like
  • greyfoxatpeace
    , contributor
    Comments (2) | Send Message
     
    Be guided by Buffet's moves for the most part. Read the book "Snowball" to see how he thinks. Dependent upon your age, round out most of his picks with solid utilities like ATT and AEP to bring in the income. Try to think like Warren; don't trade-- but rather invest in industries and managements!
    14 Aug 2012, 06:11 PM Reply Like
  • 867046
    , contributor
    Comments (398) | Send Message
     
    One thing to think about is now that Buffet owns a railroad, he also has a key economic intelligence asset.
    14 Aug 2012, 08:05 PM Reply Like
  • J.D. Welch
    , contributor
    Comments (1990) | Send Message
     
    The majority of Intel's customers (by a big margin) are outside the USA. What' does Buffett's USA-based RR have to do with that?

     

    And, the bulk of Intel's customers' customers are outside the USA, notably, the BRIC countries plus Indonesia are seeing huge (relatively) increases in PC sales...
    14 Aug 2012, 08:50 PM Reply Like
  • robhillyer
    , contributor
    Comment (1) | Send Message
     
    I think he's refering to Buffet dropping 2/3 of his JNJ investment...
    15 Aug 2012, 01:33 PM Reply Like
  • 867046
    , contributor
    Comments (398) | Send Message
     
    1) As someone else has mentioned, it's not a question of being contra INTL as much as finding a better investment.

     

    2) You apparently are aware that Buffet owns a railroad.

     

    3) His railroad, BNSF, moves oil.

     

    4) His oil tanker traffic stats gives him some insight on where the action is.

     

    5) There is a very interesting article on FT Alphaville which confirms the long term bull case for oil:

     

    http://on.ft.com/NpwfFv
    15 Aug 2012, 01:37 PM Reply Like
  • moneyTalksBSWalks
    , contributor
    Comments (193) | Send Message
     
    Does BRK disclose the picks of the 2 new investment managers?
    14 Aug 2012, 08:27 PM Reply Like
  • dividend_growth
    , contributor
    Comments (2887) | Send Message
     
    Yes, and he even mentioned that purchases in 100M range are done by his managers and those done above 1000M are done by him.
    14 Aug 2012, 11:20 PM Reply Like
  • MartinJenkins
    , contributor
    Comments (37) | Send Message
     
    buying oil is a bet on global economic recovery. What is this man up to?!!!!
    14 Aug 2012, 10:13 PM Reply Like
  • TravelingConnoisseu
    , contributor
    Comment (1) | Send Message
     
    Buffet is going after more Local Community News Papers. Daily papers have seen better days with news on demand via smart phones & the internet. I really like what he said when he bought the 2 in Texas ~ it's all about established communities wanting to keep up with local happenings ~ not the doom & gloom news.
    14 Aug 2012, 11:52 PM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3657) | Send Message
     
    It's really ironic that he bought COP, panicked and sold it, and now is buying back 50% of the former... Should have just held for the long-term?
    14 Aug 2012, 11:54 PM Reply Like
  • Bella34
    , contributor
    Comments (24) | Send Message
     
    I believe that Buffet and his team should concentrate on "The Shareholders" ROI. In over 4 years with the latest run-up....BRK B
    return is 12% (sheesh). I have taken out 70% of what I bought in 2007, and put it into a significant amount of dividend plays and strong growth and income positions. Buffet continues to make great deals for BRK B, but the investor gets NOTHING! 12% in 4 years.
    I have bought stocks since I dumped BRK B that have made 12% in 2 weeks. Come on every Buffet fan out there...where does Mr.individual Investor fall in line of the food train? Answer: THE BOTTOM.
    15 Aug 2012, 12:47 AM Reply Like
  • arthur_bishop1972
    , contributor
    Comments (2265) | Send Message
     
    Dumping cyclicals (and preparing for purchasing growth?) and buying oil might actually mean he's bullish on the future, or betting on inflation.

     

    I don't think the buy/sell of INTC means anything. He's big on buying co's with great mgmt, and INTC has great mgmt. If anything, Todd Combs should have layered his purchases, bought more and held on into 2013, where he could have sold the shares in the low to mid 30s.

     

    If anyone should be worried, it's JNJ holders imo.
    15 Aug 2012, 05:59 AM Reply Like
  • bernie 1
    , contributor
    Comments (527) | Send Message
     
    The example here is,if you want to invest like Warren,you better sleep with him. If you don't his buy's & sells are at least 3 months old & you'll be buying at the high's of the food chain. Oh yes,& selling at the lows!
    15 Aug 2012, 07:54 AM Reply Like
  • joe_lighthorse
    , contributor
    Comments (44) | Send Message
     
    BRK is a corporation, that invests for ITS purposes. It isn't a mutual fund.
    15 Aug 2012, 08:55 AM Reply Like
  • Bella34
    , contributor
    Comments (24) | Send Message
     
    joe
    joe you are right on target! Buffet is making himself his employees and BRK rich with all of his deals. The problem is the shareholder gets nothing. Especially if the price of the stock does not appreciate. He could do a one time dividend instead of holding $45 Billion in Cash! If he gave back anything it would have kept me in the stock, but 2% a year at most is like going backwards with arguabley the #1 Investor of all time. I still think he is very smart, but how about some payback for being a loyal investor in BRK!
    15 Aug 2012, 05:48 PM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3657) | Send Message
     
    Bella, I don't understand your logic here? All of the "sweet" deals are for Berkshire... not for Buffet personally. The price of the stock doesn't matter that much if you plan to hold the stock for 10 years, if anything it's good for the smaller investor so that they can build a larger position. Why would you want arguably the world's best investor giving cash back to random people like yourself? If you think you're better than Buffet (why else do you want/need a dividend?), why even own BRK.B in the first place.

     

    The payback you speak of is owning BRK.B for 10+ years and the share price will trade nearer book. Price/Earnings is far understated in this stock since the huge Coke, Wells Fargo, etc positions are only counted as dividend profits not as total pass through profits.

     

    If BRK.B counted pass through profits, I'm pretty sure it's in the 7-9 P/E range. Someone correct me if I'm way off here...
    15 Aug 2012, 07:51 PM Reply Like
  • J.D. Welch
    , contributor
    Comments (1990) | Send Message
     
    I agree with Bella. If it doesn't pay a dividend that grows at a rate that has proven to be faster than inflation, I don't want to own it.... But that's just me, I'm a DGI "zealot"... :-)
    15 Aug 2012, 08:09 PM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3657) | Send Message
     
    Nothing wrong with wanting DGI and avoiding BRK.B for this reason. But to insinuate that Buffet is somehow making himself rich at the expense of shareholders makes no sense in my opinion.

     

    Why payback dividends IF you invest in BRK.B for the reason that you trust their investment skills and core business management better than your own? I'd assume that most people invest in BRK.B because they think that Berkshire will out invest the majority for the next decade OR they think it's extremely cheap (low pass through P/E). In either case why do dividends!? Invest in new stuff, or if you can't find anything, then buy back shares.

     

    There is only one logical reason for a dividend. No profitable investment options AND the shares are overvalued. If a company continues to hike their dividends without buying back any shares, that's a bad sign in my opinion.
    15 Aug 2012, 09:01 PM Reply Like
  • J.D. Welch
    , contributor
    Comments (1990) | Send Message
     
    I disagree with the first sentence in your last paragraph. That's not why dividends are paid out, and it's a very myopic view of companies that do so.

     

    Buy backs are important, too, but used in conjunction with dividends they return value (earnings) to shareholders (owners) which is one of the primary functions of management...
    15 Aug 2012, 09:16 PM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3657) | Send Message
     
    J.D. -- I really like dividends. Not the taxation, and tremendous increase of that, which will soon come with them. I think dividends can be a tool to keep management honest. In an established company that pays out 25%+ it keeps management from screwing up at least that much. If MSFT had a higher payout ratio, perhaps they wouldn't have made that horrible Ad-Co purchase. The irony of this is in Apotheker's visionary goal to turn HPQ into a huge shareholder return company and then a $10B purchase of Autonomy.

     

    Anyways I think you likely disagree with both the first AND second sentences of my last paragraph. How about the third? The exception of course would be MLPs or utilities.
    15 Aug 2012, 09:20 PM Reply Like
  • J.D. Welch
    , contributor
    Comments (1990) | Send Message
     
    Agreed, sorry, yes, I meant first & second. I read them as one sentence. Yes, I agree with the third... Thanks... :-)
    15 Aug 2012, 09:45 PM Reply Like
  • ConservativeOutperformer
    , contributor
    Comments (557) | Send Message
     
    You know, it's always important for an investor to temper their confidence upon reaching some level of investing success so as not to get too overconfident...... However, reading these posts makes that virtually impossible.

     

    Calling you people clueless would be the best compliment you could ever hope to achieve.

     

    I wish you a lot of luck, it's the only way you won't lose money.
    16 Aug 2012, 09:39 AM Reply Like
  • J.D. Welch
    , contributor
    Comments (1990) | Send Message
     
    Well, that was rude.

     

    So what's your strategy, Oh Conservative One?
    16 Aug 2012, 02:22 PM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3657) | Send Message
     
    He buys.... then he buys some more (profile). Duh! No wonder "you people" are so clueless. ;)
    16 Aug 2012, 05:02 PM Reply Like
  • bernie 1
    , contributor
    Comments (527) | Send Message
     
    conservitiveoutperformer doesn't seem to like this site,the contributors,& OH YES there trading styles. He doesn't like us so much that he was inclined to make 288 comments to tell us all how bad we are.
    N OW THAT'S A REAL STAR !!!!!!!!!!!!!!!!!
    17 Aug 2012, 06:55 AM Reply Like
  • paulryaninhi
    , contributor
    Comments (7) | Send Message
     
    Bella 34, let me know when your 12% you made in two weeks lands you on the list of the richest men in the world.......otherwise drop dead.
    23 Aug 2012, 08:48 PM Reply Like
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