Warren Buffett's Recent Stock Purchases
Warren Buffett’s Berkshire Hathaway has disclosed a new buy of 40 million shares in Exxon Mobil Corp. and that he has further cut his investment in ConocoPhillips over Q3.
Berkshire Hathaway filed a quarterly update on Thursday with the SEC, with the two oil company investments being the biggest changes, it reduced its ConocoPhillips holding to 13.5 million shares from 24.2 million shares in June.
The size of the investment in Exxon — $3.7 billion — suggests it was Warren Buffett’s decision. He has said in the past that investments below $300 million are generally decided by other Berkshire managers.
Berkshire said it began buying the Exxon shares in Q2 building up to 40.1 million shares by end September. There is no indication of whether Berkshire bought any more Exxon stock in the past month and a half.
Buffett admitted he made a mistake when he bought 84.9 million shares in ConocoPhillips in 2008 when oil prices were peaking, and said that mistake cost Berkshire several billion dollars, not his best investment ever, but it's nice to know he sometimes gets it wrong! He has been slowly gradually selling ConocoPhillips shares since wrote down their value.
Buffett, Todd Combs and Ted Weschler clearly thin there is value to be had in the oil business, as Berkshire also has investments in refiner Phillips 66 and supplier to the oil and gas industry National Oilwell Varco Inc. - these remained unchanged
Apart from the oil investments Buffet made other changes to the portfolio, including:-
- A massive reduction in the stake in GlaxoSmithKline PLC from nearly 1.5 million shares down to 345,819.
- A reduction in its stake in French drugs company Sanofi from 4.1 million shares to 3.9 million.
- An increase in its investment in Suncor Energy Inc. from 17.8 million shares to over 18 million.
- An increase in its large stake in U.S. Bancorp from 78.3 million shares to 79.1 million.