BRK B Berkshire Hathaway Inc. Cl B Stock Overview U.S.: NYSE

He told investors this month he had reevaluated the risks of investing in Taiwan, on growing concern China might soon invade or try to reclaim the island nation. Berkshire also has dozens of operating businesses including the BNSF railroad, Geico car insurance, and many energy, manufacturing and consumer units. Close to half of its stock sales were in Chevron Corp (CVX.N), though Berkshire still owns a 23.7% stake in another oil company, Occidental Petroleum Corp (OXY.N).

• Thanks to its juicy dividend, though, the oil and gas giant is the second-biggest source of dividends for Buffett.
• Berkshire Hathaway was far from the only high profile investment manager selling bank shares last quarter.
• BofA should pay close to $909 million in dividends to Berkshire this year.

That could have had something to do with Berkshire’s decision to exit its stake. A holding company owning subsidiaries engaged in a number of diverse business activities, including property and casualty insurance and reinsurance, utilities and energy, finance, manufacturing, retailing and services. Chevron (CVX -2.35%) ranks as the sixth-largest holding in Berkshire’s portfolio.

Cisco Systems will report earnings later Wednesday, while data on housing starts and building permits will provide insight into the health of the U.S. housing market. Apple (AAPL) is Berkshire’s biggest holding and makes up more than 47% of Berkshire’s total portfolio. Although Apple’s dividend yield of 0.56% is paltry, Buffett will still receive in the ballpark of $879 million in dividends from the tech company. The stake grew after further purchases until the conglomerate had amassed 2.36 million shares of the company, worth about $575 million at the end of the first quarter. RH stock plunged as much as 8% on Tuesday after a 13F filing from Berkshire Hathaway revealed that Warren Buffett sold its entire stake in the high-end home furnishings company last quarter. They are the latest of his longstanding bank bets to be pared.

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We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters. Like Coca-Cola, American Express (AXP -1.06%) has been a longtime holding for Buffett. The financial services giant should provide dividend income of close to $364 million for Berkshire in 2023.

The WSJ Dollar Index gained 0.2%, on pace to finish higher for the sixth session in the last eight trading days. Bank of America has raised its dividend payouts by nearly 47% over the last five years. Apple and Chevron have increased their dividends by more than 30% during the same period. Coca-Cola is a Dividend King, with 61 consecutive years of dividend hikes. Each of these companies seems likely to continue increasing their dividends in the coming years. It’s easy to make billions of dollars when you’re Warren Buffett.

Some of the big bucks the legendary investor will make this year will come especially easily. Here’s how Buffett is set to rake in nearly $6 billion in dividend income this year. The 92-year-old investor has over the decades played the role of rescuer to a number of institutions, including in the 2008 financial crisis. He has yet to emerge as a white knight for any banks in trouble during this current crisis, at least in any way that has thus far been made public.

As far as the purchases go, Buffett’s admiration for Bank of America and its management team is well-known, so it isn’t too surprising that Berkshire added to that position. In contrast, high-yielding assets for credit card specialists such as Capital One position them better to absorb increased funding costs and avoid liquidity concerns, he added. “Trust banks such as BNY Mellon have seen deposit pressures mounting as the [U.S. Federal Reserve shifts] to quantitative tapering,” said David Smith, an analyst at Autonomous Research. Berkshire bought more Apple and Bank of America shares in the quarter.

Buffett did invest more deeply into several other financial stocks in the quarter. Berkshire added $954 million of Capital One (COF) and raised its holding in Ally Financial (ALLY) by $10.6 million. The conglomerate also sold $1.1 million of Jefferies Financial Group (JEF) and didn’t touch its stake in Citigroup (C).

Berkshire Hathaway Inc. Cl B stock outperforms market on strong trading day

The Omaha, Nebraska-based conglomerate ended March with $130.6 billion of cash and equivalents. The McLean, Virginia-based bank did not immediately respond to requests for comment. Buffett has essentially declared that a great business does not mean you should automatically invest. The Oracle of Omaha might be the most successful income investor on the planet. Nvidia’s Market Cap Is Now Bigger Than Berkshire Hathaway’s. Nvidia now has a higher market capitalization than Warren Buffett’s Berkshire Hathaway,…

In the first quarter, according to filings, Berkshire maintained its Bank of America holdings. First, Buffett was serious about sticking with Bank of America. The conglomerate added 22.8 million shares (at a market value of about $615 million) to its Bank of America stake during the first quarter, bringing its ownership stake to more than 12.9%. Buffett shed what remained of the TSMC stake six months after surprising investors by revealing a $4.1 billion investment. Despite the selling, Berkshire still invests in several financial services companies. Monday’s filing does not say which investments are Buffett’s and which are from his portfolio managers Todd Combs and Ted Weschler, though larger investments are usually Buffett’s.

The Oracle of Omaha sold a large portion of Berkshire’s holdings in US banks between 2020 and 2022, some just months before the banking system upheaval that began in mid March. More notably, Berkshire completely exited its positions in both U.S. Bancorp (USB -3.27%) and Bank of New York Mellon (BK -2.53%) during the quarter. These banks had been in Buffett’s portfolio since 2006 and 2010, respectively, but Berkshire had begun selling shares of both in recent quarters, so the exits weren’t particularly surprising. For one thing, Berkshire slightly trimmed its investment in Ally Financial (ALLY -1.92%), selling about 2% of its shares in the auto-focused lender.

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His company, Berkshire Hathaway (BRK.A 0.55%) (BRK.B 0.07%), has hundreds of billions of dollars invested in businesses that are continually working hard to make more money. But shares of RH have fallen considerably since its post-pandemic peak of nearly $750, dropping 67% to today’s price of about $244. US Bancorp, BNY Mellon and Jefferies were down in early after hours trading while Bank of America, Citi, Capital One and Ally were up. At Berkshire Hathaway’s (BRK.A 0.55%) (BRK.B 0.07%) recent shareholder meeting in Omaha, CEO Warren Buffett and Vice Chairman Charlie Munger had quite a bit to say about the state of the banking industry. Berkshire also shed its holdings in Bank of New York Mellon Corp (BK.N) and US Bancorp (USB.N), as well as Taiwanese chipmaker TSMC (2330.TW) and furniture chain RH (RH.N). The Oracle of Omaha and his investment team have been aggressive net sellers of stocks since October.

The Dow Jones Industrial Average fell after component Home Depot (HD) disappointed investors with its latest report. Get this delivered to your inbox, and more info about our products and services.

Buffett has become a big fan of Occidental Petroleum (OXY -0.65%) lately. The oil stock is on track to contribute around $152 million in dividend income for Berkshire this year. That included more than 80% of its holdings in Bank of New York Mellon and US Bancorp. Bridgewater https://business-oppurtunities.com/has-your-career-path-been-a-winding-road/ also zeroed out positions in 15 other US lenders, including Bank of America (BAC), Western Alliance, Zions (ZION), PacWest (PACW) and New York Community Bank (NYCB). Berkshire Hathaway was far from the only high profile investment manager selling bank shares last quarter.

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• And many investors were surprised to learn that Berkshire actually bought shares of two different banks during Q1.
• He is notoriously quiet when it comes to explaining most of his investment decisions.
• Bridgewater also zeroed out positions in 15 other US lenders, including Bank of America (BAC), Western Alliance, Zions (ZION), PacWest (PACW) and New York Community Bank (NYCB).

Capital One was certainly the big surprise of the quarter, but it’s not hard to see why Buffett likes it. It has an extremely low valuation (about 0.7 times book value) at the moment, but has a highly profitable business model due to the large concentration of high-interest credit card debt in its loan portfolio. And while Capital One’s net charge-off rate has ticked higher in recent quarters, it’s still not excessive on a historical basis, and the bank has more than enough set aside in loan-loss reserves. It trades for just 6.7 times forward earnings despite an above-average net interest margin. Target shares are slightly lower, after the retailer said sales growth stalled and profit fell in the most recent quarter.

Buffett’s Berkshire Bets on Capital One; Dumps TSMC, 2 Bank Stocks

Results are interpreted as buy, sell or hold signals, each with numeric ratings and summarized with an overall percentage buy or sell rating. After each calculation the program assigns a Buy, Sell, or Hold value with the study, depending on where the price lies in reference to the common interpretation of the study. For example, a price above its moving average is generally considered an upward trend or a buy. The Warren Buffett-led company sold its stakes in Bank of New York and U.S. Bancorp, and initiated a new position in Capital One Financial.

In Monday’s filing, Berkshire also revealed a new $41.3 million stake in Diageo Plc (DGE.L), the maker of alcoholic beverages including Johnnie Walker and Guinness. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. Dreamstime

Nvidia now has a higher market capitalization than Warren Buffett’s Berkshire Hathaway, as in… Maintaining independence and editorial freedom is essential to our mission of empowering investor success.

It’s worth acknowledging that while Buffett and his team invested about $1.5 billion in bank stocks during the first quarter, it was indeed a net seller of bank stocks. The billionaire investor isn’t confident the banking crisis is over, but he’s still putting money into a couple of bank stocks. Warren Buffett cut his exposure to two more banks last quarter while buying new stock in Capital One (COF). Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes.

Capital One shares rose 5.7% in after-hours trading following Berkshire’s disclosure of a 9.92 million share stake worth about $954 million. Buffett’s company made its disclosures in a regulatory filing listing its U.S.-traded stocks as of March 31. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. BRK.B’s beta can be found in Trading Information at the top of this page. A stock’s beta measures how closely tied its price movements have been to the performance of the overall market.

His Hulbert Ratings service tracks investment newsletters that pay a flat fee to be audited. Richard Moroney, editor and director of research, argues that the Dow Theory is currently bearish. Might the existence of a divergence between the two Dow averages itself have significance? Larger positive or negative divergences between the two indexes were not correlated with bigger or smaller subsequent gains or losses in the overall U.S. market. US stock futures rose and Treasuries steadied as White House and congressional negotiators continued to try to resolve their differences.

Having said all of that, it’s important to point out that we don’t know for sure exactly why Buffett (or others at Berkshire) made any of these moves. He is notoriously quiet when it comes to explaining most of his investment decisions. But one thing is pretty clear — Buffett’s preferred banking models may have shifted, but he isn’t ready to give up on the industry. Specifically, Buffett said that the recent bank failures had created fear, and because fear can be contagious, he wasn’t certain if the period of consumer and investor panic in the sector was over. And while Munger is generally a fan of banking, he said that bankers are starting to distort some of the lessons learned from the 1929 crash.