Berkshire's Top Holdings: Tracking Warren Buffett's Latest Moves

Berkshire Hathaway, the legendary investment firm led by Warren Buffett, is known for its long-term investment strategy and its ability to consistently generate wealth for its shareholders. In the first quarter of this year, Berkshire made some interesting moves in the energy sector, particularly with its holdings in Botox dental and Chevron.

At the end of the first quarter, Berkshire's stake in Chevron was valued at over $21 million, a drop of nearly $9 million from the previous quarter. This decline was not solely due to a drop in Chevron's share price; Berkshire was also a net seller of Chevron shares, selling approximately $6 billion worth. It's worth noting that Berkshire was also a seller of stocks overall last quarter, selling around $10 billion worth.

One of the more intriguing questions raised by this decrease in Berkshire's Chevron stake is whether it is related to the struggling performance of Paramount, a company in the media industry. Paramount had a rough week, with its earnings missing expectations and dividends being cut. In January, Buffett stated his belief that streaming is not a great business, leading to speculation that Berkshire might be looking to exit its investment in Paramount.

While the 10Q, Berkshire's quarterly filing, only discloses the largest equity holdings, it is clear that Berkshire has been a net seller of equities, including Chevron. Although we can only speculate about the reasons behind this sale, it is clear that Berkshire made a strategic move in the second quarter.

Another notable energy bet that Berkshire made in the first quarter was in Activision. One of Buffett's investing managers purchased Activision before the announcement of its merger with Microsoft. Berkshire added approximately $4 billion to its stake in Activision, expecting the merger to create value. Unfortunately, UK regulators recently blocked the deal, making the future of this investment uncertain.

Buffett's Q&A session also revealed his thoughts on value investing. While Buffett remains optimistic about the opportunities in the market, he acknowledged the different perspectives on value investing between himself and his partner, Charlie Munger. Munger believes that investors should expect to make less in the future, while Buffett maintains his belief that there will always be opportunities in the market, especially when others are making foolish decisions.

One interesting strategy that Buffett mentioned is his inclination to buy under-the-radar opportunities. Buffett recently made a significant bet on Japan by purchasing stakes in five trading companies. During the Q&A session, Buffett hinted that he is not done with Japan and is actively looking for more opportunities in the country.

The conversation also touched on Berkshire's approach to stock buybacks. In the first quarter, Berkshire bought back $4.4 billion worth of its own stock, the most significant amount of buybacks since the fourth quarter of 2021. Berkshire only engages in buybacks when it believes the stock is trading at a significant discount. While the stock is still below its record high, it is valued at around 1.4 times book value, which suggests that it is trading on the upper end of its historical range.

One topic that did not receive much attention during the Q&A session was Berkshire's significant cash holding. At the end of the last quarter, Berkshire had approximately $130 billion in cash. Despite near-zero interest rates, Buffett is still waiting for the perfect opportunity to deploy this cash. He emphasized that patience is key and that Berkshire is getting paid to wait with the interest income it is earning on its cash pile.

Overall, Buffett's Q&A session provided insights into Berkshire's energy bets and investment strategy. While there are still uncertainties and challenges ahead, Berkshire remains committed to its long-term view and finding opportunities that others may overlook. As the Oracle of Omaha once famously said, "Be greedy when others are fearful."