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Summary

  • In addition to Taiwan Semiconductor, Buffett bought Louisiana-Pacific
    LPX
    and Jefferies.
  • He sold out of STORE Capital
    STOR
    .
  • The guru also added to Occidental and Chevron
    CVX
    .

Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial), the multibillion-dollar conglomerate run by Warren Buffett (Trades, Portfolio), disclosed its equity portfolio for the third quarter of 2022 on Monday.

With a cash pile of over $109 billion to spend on stocks at the end of September, the renowned guru and his two portfolio managers, Ted Weschler and Todd Combs,dedicated a lot of cash to scaling up the investment in Occidental Petroleum
OXY
Corp. (OXY, Financial). It now owns 21.38% of the company’s outstanding shares.

Other notable buys for the quarter that were reported in the 13F filing included new positions in Taiwan Semiconductor Manufacturing Co. Ltd. (TSM, Financial), Louisiana-Pacific Corp. (LPX, Financial) and Jefferies Financial Group Inc. (JEF, Financial). It also added to the Chevron Corp. (CVX
CVX
, Financial) stake.

As for the sell side, Berkshire exited STORE Capital Corp. (STOR, Financial) and made large reductions in U.S. Bancorp
TBBK
(USB, Financial), Activision Blizzard
ATVI
Inc. (ATVI, Financial), Bank of New York Mellon
BK
Corp. (BK, Financial), General Motors
GM
Co. (GM, Financial) and Kroger
KR
Co. (KR, Financial).

Investors should be aware that 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but they can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.

Berkshire’s five largest holdings, accounting for over half of the equity portfolio, are Apple
AAPL
Inc. (AAPL, Financial), Bank of America
BAC
Corp. (BAC, Financial), Chevron, Coca-Cola
KO
Co. (KO, Financial) and American Express
AXP
Co. (AXP, Financial).

The guru’s $296.10 billion equity portfolio consisted of 49 stocks as of Sept. 30. A majority of the portfolio was invested in technology stocks at 45.16%, while the financial services sector has a weight of 24.01% and the energy space represents 12.05%.

Occidental

As previously disclosed, Buffett increased his Occidental Petroleum (OXY, Financial) holding by 22.58% during the third quarter, buying 35.8 million shares. The transaction had an impact of 0.74% on the equity portfolio. The stock traded for an average price of $64.01 per share during the quarter.

The position currently occupies 4.03% of the equity portfolio and is now his sixth-largest holding at 194.35 million shares. He has gained approximately 38.92% on the investment so far.

The Houston-based oil and gas producer has a $66.61 billion market cap; its shares were trading around $73.28 on Monday with a price-earnings ratio of 7.01, a price-book ratio of 3.78 and a price-sales ratio of 2.11.

The GF Value Line suggests the stock is significantly overvalued currently based on historical ratios, past financial performance and analysts’ future earnings projections.

Taiwan Semiconductor

The guru invested in 60.1 million shares of Taiwan Semiconductor (TSM, Financial), allocating 1.39% of the equity portfolio to the stake. Shares traded for an average price of $82.65 each during the quarter. It is now the 10th-largest holding

The Taiwanese company, which manufactures semiconductor chips, has a market cap of $377.55 billion; its shares were trading around $72.80 on Monday with a price-earnings ratio of 14.11, a price-book ratio of 4.52 and a price-sales ratio of 6.03.

According to the GF Value Line, the stock is significantly undervalued currently.

Louisiana-Pacific

The investor picked up 5.79 million shares of Louisiana-Pacific (LPX, Financial), dedicating 0.10% of the equity portfolio to the position. During the quarter, the stock traded for an average per-share price of $56.84.

The building materials manufacturer, which is headquartered in Nashville, Tennessee, has a $4.22 billion market cap; its shares were trading around $58.90 on Monday with a price-earnings ratio of 3.78, a price-book ratio of 3.10 and a price-sales ratio of 1.02.

Based on the GF Value Line, the stock appears to be significantly undervalued.

Jefferies

The Oracle of Omaha entered a 433,558-share holding of Jefferies (JEF, Financial). The stock traded for an average price of $31.66 per share during the quarter.

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The New York-based investment bank has a market cap of $8.45 billion; its shares were trading around $36.89 on Monday with a price-earnings ratio of 10.08, a price-book ratio of 0.82 and a price-sales ratio of 1.30.

The GF Value Line suggests the stock is significantly overvalued currently.

Chevron

With an impact of 0.19% on the equity portfolio, Buffett increased the Chevron (CVX, Financial) stake by 2.43%, buying 3.9 million shares. Shares traded for an average price of $152.51 each during the quarter.

He now holds 165.4 million shares total, accounting for 8.02% of the equity portfolio. GuruFocus estimates he has gained 38.99% on the investment so far, which is his third-largest holding.

The energy giant headquartered in San Ramon, California has a $360.72 billion market cap; its shares were trading around $186.55 on Monday with a price-earnings ratio of 10.61, a price-book ratio of 2.27 and a price-sales ratio of 1.60.

According to the GF Value Line, the stock is fairly valued currently.

STORE Capital

The guru exited the 6.9 million-share STORE Capital (STOR, Financial) stake, impacting the equity portfolio by -0.06%. During the quarter, the stock traded for an average per-share price of $28.41.

GuruFocus estimates he gained 34.84% on the investment over its lifetime.

The Scottsdale, Arizona-based real estate investment trust has a market cap of $8.95 billion; its shares were trading around $31.65 on Monday with a price-earnings ratio of 27.28, a price-book ratio of 1.67 and a price-sales ratio of 9.92.

Based on the GF Value Line, the stock appears to be modestly undervalued.

U.S. Bancorp

Buffett curbed the U.S. Bancorp (USB, Financial) holding by 35.07%, selling 42.01 million shares and impacting the equity portfolio by -0.65%. The stock traded for an average price of $46.27 per share during the quarter.

Following another reduction in October, the guru now holds 53.04 million shares, which make up 0.76% of the equity portfolio. He has gained approximately 38.73% on the investment so far.

The bank headquartered in Minneapolis has a $65.15 billion market cap; its shares were trading around $43.85 on Monday with a price-earnings ratio of 10.42, a price-book ratio of 1.60 and a price-sales ratio of 2.77.

The GF Value Line suggests the stock is modestly undervalued.

Activision Blizzard

Impacting the equity portfolio by -0.21%, the investor whittled down the Activision Blizzard (ATVI, Financial) stake by 12.07%, selling 8.3 million shares. During the quarter, shares traded for an average price of $78.30 each.

Berkshire now holds 60.14 million shares total, which represent 1.51% of the equity portfolio. So far, GuruFocus data shows Buffett has lost an estimated 1.58% on the investment, which is now the ninth-largest holding.

The Santa Monica, California-based video game publisher, which is being acquired by Microsoft
MSFT
Corp. (MSFT, Financial), has a market cap of $57.88 billion; its shares were trading around $73.96 on Monday with a price-earnings ratio of 34.72, a price-book ratio of 3.08 and a price-sales ratio of 7.89.

According to the GF Value Line, the stock is fairly valued currently.

Bank of New York Mellon

The guru sold 10.15 million shares of Bank of New York Mellon (BK, Financial), impacting the equity portfolio by -0.14% and shrinking the position by 14.02%. During the quarter, the stock traded for an average per-share price of $42.63.

He now holds 62.21million shares total, reflecting 0.81% of the equity portfolio. GuruFocus estimates he has gained 1.02% on the long-held investment.

The investment bank headquartered in New York has a $35.22 billion market cap; its shares were trading around $43.58 on Monday with a price-earnings ratio of 13.25, a price-book ratio of 1.01 and a price-sales ratio of 2.22.

Based on the GF Value Line, the stock appears to be modestly undervalued currently.

General Motors

Buffett trimmed his General Motors (GM, Financial) position by 5.44%, selling 2.87 million shares. The transaction impacted the equity portfolio by -0.03%. The stock traded for an average price of $36.70 per share during the quarter.

He now has a total of 50 million shares, giving it 0.54% space in the equity portfolio. GuruFocus says he has gained about 33.25% on the investment over its lifetime.

The automaker based in Detroit has a market cap of $56.73 billion; its shares were trading around $39.93 on Monday with a price-earnings ratio of 6.78, a price-book ratio of 0.86 and a price-sales ratio of 0.41.

The GF Value Line suggests the stock is currently modestly undervalued.

Kroger

The Kroger (KR, Financial) stake was reduced 4.14%, shedding 2.16 million shares. Trading at an average price of $47.51 during the quarter, the transaction had an impact of -0.03%.

Buffett now holds 50.3 million shares, making up 0.74% of the equity portfolio. He has gained 47.472% on the investment so far.

The grocery store chain, which is headquartered in Cincinnati, has a $33.33 billion market cap; its shares were trading around $46.56 on Monday with a price-earnings ratio of 14.15, a price-book ratio of 3.45 and a price-sales ratio of 0.24.

According to the GF Value Line, the stock is fairly valued currently.

See the rest of Buffett’s portfolio here.

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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