Berkshire Hathaway: Buffett Is Doing Much More Than Selling (Part II)

(7min)

Summary

  • Berkshire Hathaway Inc.'s latest 13-F shows a clear shift away from financials, notably reducing Bank of America and eliminating Citigroup, signaling caution on the sector.
  • I believe Berkshire is preparing for a period of secular inflation or stagflation, as evidenced by increased oil exposure and trimming of financial stocks.
  • The fund's top holdings—Apple, American Express, and Coca-Cola—all have strong pricing power, making them resilient in inflationary environments.
  • Overall, BRK.A is well-positioned with defensive assets and a large cash reserve to capitalize on potential market downturns.

Old street historic Garden district in Louisiana famous town, city sidewalk, closeup of Berkshire Hathaway real estate sign on fence

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Thesis Summary

Berkshire Hathaway Inc.'s (NYSE:BRK.B) The latest 13-F is out, and the company has, once again, made some meaningful sales and buys.

Most notably, the fund has sold a large stake in Bank of America (BAC), which

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This article was written by

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James Foord is an economist by trade and has been analyzing global markets for the past decade. He leads the investing group The Pragmatic Investor where the focus is on building robust and truly diversified portfolios that will continually preserve and increase wealth.

The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of BRK.B either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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