Recently, the U.S. Securities and Exchange Commission (SEC) released Berkshire Hathaway's third-quarter holding report (13F) for the period ending September 30, 2024. The data shows that Berkshire's total market value of holdings in the third quarter was $266 billion, a decrease of 5% compared to $280 billion in the previous quarter. The report indicates that Berkshire added two new stocks, increased holdings in two stocks, while reducing stakes in six stocks and fully divesting from three stocks. The top ten holdings accounted for 89.68% of the total holdings' market value.
Top Five Holdings: Apple Still Leads But With Significant Cuts
Apple (AAPL.US) remains Berkshire's top holding, with 300 million shares and a market value of approximately $69.9 billion, making up 26.24% of its portfolio. However, the number of Apple shares has decreased by 25% compared to the previous quarter, down from 905 million shares at the beginning of the year. Nevertheless, Apple remains its largest single holding.
The second to fifth largest holdings are:
- American Express (AXP.US): Holding 152 million shares, valued at $41.1 billion, accounting for 15.44%; the holding quantity remains unchanged.
- Bank of America (BAC.US): Holding 766 million shares, valued at $32.3 billion, a decrease of 1.12% from the previous quarter.
- Coca-Cola (KO.US): Holding 400 million shares, valued at $28.7 billion, accounting for 10.79%; the holding quantity remains unchanged.
- Chevron (CVX.US): Holding 119 million shares, valued at $17.5 billion, accounting for 6.56%; the holding quantity remains unchanged.
The sixth to tenth largest holdings include Occidental Petroleum (OXY.US), Moody’s (MCO.US), Kraft Heinz (KHC.US), Chubb (CB.US), and DaVita (DVA.US).
New Additions and Reductions: Domino's Pizza Emerges, Apple Reduction Draws Attention
In the third quarter, the two newly added stocks were Domino's Pizza (DPZ.US) and Pool Corp (POOL.US), reflecting Berkshire's further investment in the consumer and service sectors. At the same time, Berkshire reduced several core assets in the quarter, including Apple and Bank of America, among others. Apple holdings dropped by 25%, and Bank of America's holdings reduced by 1.12%. Additionally, Berkshire significantly reduced its holdings in Ulta Beauty (ULTA.US) by 96.49% compared to the previous quarter, and Charter Communications (CHTR.US) holdings fell by 26.30%.
In terms of changes in holding proportions, the top three purchases were Domino's Pizza, Pool Corp, and HEICO Aviation (HEI.A.US), while the top five sales included Apple, Bank of America, the two classes of Liberty Sirius XM shares (LSXMK.US and LSXMA.US), and Floor & Decor (FND.US).
Earnings Performance and Surge in Cash Reserves
Notably, Berkshire's third-quarter financial report released earlier this month showed total revenue of $92.995 billion, slightly lower than $93.21 billion in the same period last year; operating profit decreased by 6.2% year-on-year to $10.09 billion, not meeting the market expectation of $10.9 billion; net profit was $26.25 billion, compared to a loss of $12.77 billion in the same period last year. Moreover, Berkshire's cash reserves surged to $325.2 billion, nearly doubling from $168 billion at the start of the year.
Overall, Berkshire Hathaway made some adjustments in the third quarter by maintaining its core assets while adding high-quality targets in the consumer and service sectors and reducing some heavy stock holdings. As global economic uncertainty increases, Berkshire's surge in cash reserves may suggest it is preparing for future market opportunities.
