Value investors typically maintain a long term focus but it is a rare to find anyone who entirely ignores quarterly results. The second quarter was ugly with the Dow Jones Industrial Average falling 10 percent and the S&P 500 falling 11.9 percent. Berkshire Hathaway’s equity portfolio was not immune from the negative sentiment with an estimated decline of 10.6 percent (excluding dividends), which essentially mirrors the fall in the broad market. Read this post for more details.
In a 13F Filing with the Securities and Exchange Commission this afternoon, Berkshire reported holding 106.7 million shares of Kraft as of March 31, 2010 compared to nearly 138.3 million shares on December 31, 2009. In addition to the sale of Kraft shares, Berkshire liquidated shares in several other companies and added to positions in three companies. No new positions were initiated during the quarter. Let’s take a brief look at the Kraft sale and other transactions revealed in today’s report.
Warren Buffett is not known for frenetic trading, so the fourth quarter of 2009 was a particularly active time for Berkshire Hathaway’s portfolio of publicly traded stocks. There were changes in eighteen of the forty three positions held at the start of the quarter. Read this article for more details.
Berkshire Hathaway’s equity portfolio posted strong results in the fourth quarter with an estimated return of 7.6% compared to a 5.5% return for the Standard & Poor’s 500 index. During the quarter, Berkshire reduced its stake in Moody’s by 18.9% and also liquidated investments in Norfolk Southern and Union Pacific to pre-empt any competitive concerns related to the upcoming acquisition of Burlington Northern Santa Fe. Read this article for a closer look at Q4 estimated results.
During the third quarter, Berkshire made further purchases of Exxon Mobil and also initiated positions in Nestle, Republic Services, and The Travelers Companies. Berkshire closed out positions in the Eaton Corporation and Wabco Holdings while reducing its stake in Conoco Phillips, Moody’s, NRG Energy, Sun Trust Bank, and WellPoint. Read this article for more details and estimates for performance in Q4 so far.