Berkshire Hathaway is investing in three new companies while cutting back on others. It is betting on Chevron Corp., Verizon Communications, and Insurance brokerage company Marsh & McLennan. The company cut its shares in Apple Inc. in the last three months of 2020.
Berkshire Hathaway is a holding company that invests or buys stocks in different companies such as Coca-Cola and Kraft Heinz Company. It is lead and managed by the man himself, Warren Buffett, who serves as the Chairman and CEO of Berkshire Hathaway Holdings. Buffett is very experienced in the stock market, he made his fortune by investing in the right companies at the right time. Following Hathaway’s new investments, people should watch these stocks closely.
The coronavirus pandemic has forced Warren Buffett and investment deputies Todd Combs and Ted Weschler to reshape the company’s portfolio. The company cut a few bank holdings including JPMorgan & Chase, PNC Financial Services Group Inc., and M&T Bank Corp. Additionally, It slashed its Wells & Fargo stake by 5% and instead bet on Bank of America Corp.
Berkshire Hathaway also chose to cut its holdings in General Motors Co. to a stake valued at $3 Billion at the end of the fourth quarter. Although the holding company cut its shares in Apple Inc., it remains Berkshire Hathaway’s biggest single stock holding, valued at $120 Billion at the end of 2020.
In wake of the pandemic, Buffett put bets on drug companies. The company increased its stake in Merck & Co, Abbvie Inc, and Bristol Myers Squibb Co. (BMS Co.) while it ended a recent investment in Pfizer.
Berkshire Hathaway’s investment in Chevron and Marsh & McLennan was valued at $4.1 Billion and $499 Million, respectively. The company’s investment in Verizon was valued at $8.6 Billion by the end of 2020. Following these sizeable investments, Verizon stock was up 4.1% to $56.35, and Chevron gained 4.1% also to $96.99 in early New York trading on February 17th, 2021.
References:
1) Chiglinsky, K. (2021, February 16). Bloomberg.com. Retrieved March 03, 2021, from https://www.bloomberg.com/news/articles/2021-02-16/buffett-s-berkshire-trims-apple-bet-holds-120-billion-stake
2) Li, Y. (2021, February 27). Read Warren Buffett's annual letter to Berkshire Hathaway shareholders. Retrieved March 04, 2021, from https://www.cnbc.com/2021/02/27/read-warren-buffetts-annual-letter-to-berkshire-hathaway-shareholders.html
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