On Thursday Eastern Time, Berkshire Hathaway, under Warren Buffett, released its 13F quarterly holdings report for the quarter ending March 31, 2024. It showed that its investment strategy in the U.S. stock market remains cautious, with its overall holding market value slightly declining.
According to the 13F filing, Berkshire did not establish any new positions in the first quarter of this year, only making minor adjustments by slightly increasing or decreasing certain stocks: increasing holdings in 7 stocks, reducing in 6, and completely selling off 2, bringing the total market value of holdings from the previous quarter's $267 billion down slightly to $259 billion.
BofA Holdings Reduced to 10.19%, Citi and Nu Holdings Fully Sold Off
The most notable move was Berkshire's continued reduction of its stake in Bank of America. Data shows that it reduced its holding by 48.66 million shares, decreasing its ownership percentage from 11.19% in the previous quarter to 10.19%. This drop in percentage caused Bank of America to fall from third to fourth place among Berkshire's top ten holdings.
Additionally, Berkshire fully divested from Citigroup with 14.63 million shares and the Latin American digital financial company Nu Holdings, indicating a slight shift in confidence regarding some financial assets. Since July 2023, Buffett has steadily reduced Bank of America shares, although he has not made a clear comment on the matter.
Apple Holdings Stable, Increased Investment in Alcohol and Energy Stocks
In terms of increased holdings, Berkshire's largest move was in Constellation Brands (STZ), acquiring an additional 6.38 million shares, a 113.5% increase. Constellation Brands is a well-known American alcohol manufacturer with beer brands such as Corona and Modelo. This acquisition increased its share of Berkshire's investment portfolio from 0.47% to 0.85%.
Simultaneously, Berkshire slightly increased its stake in Occidental Petroleum by 760,000 shares, the only top ten holding to see an increase, indicating continued interest in the energy sector.
Notably, Apple remains the largest holding in Berkshire's portfolio. In the first quarter of this year, Berkshire maintained its 300 million Apple shares without any adjustments. This means that after stopping the reduction in the fourth quarter of last year, the Buffett team has kept its Apple holdings stable for two consecutive quarters. As of the end of March, Apple constituted a substantial 25.76% of its total investment portfolio.
What is the Value of the 13F Report?
According to U.S. regulatory requirements, all institutions with assets under management exceeding $100 million must submit 13F filings within 45 days after the end of the quarter to disclose their long-term holdings in the U.S. stock market. Although this report does not include short positions or options and is somewhat delayed, it is still viewed by investors as an important tool for observing institutional investment trends, particularly in the operations of long-term value investors like Buffett, where it serves as a significant indicator.
In summary, while overall operations remain cautious, Berkshire's slight adjustments in certain industries reflect its deep considerations of the current market cycle.
