It may be the worst quarter for stocks in the past 4 years, but that has not stopped Berkshire Hathaway from increasing its portfolio by 25% more shares.
First, the selling
As reported on CNN.com, along with acquiring more shares of several notable companies, Buffett also sold some of Berkshire’s holdings, including shares in Goldman Sachs (GS) and Wal-Mart (WMT). This had an immediate effect of lowering Goldman’s stock price, but Wal-Mart shares were unaffected.
Now, the buying
What companies comprised Buffett’s acquisitions? One of the largest number of shares were not purchased, as AT&T (T, Tech30) completed its acquisition of DirecTV, whose shares Berkshire Hathaway owned. Buffett received 59 million shares of AT&T in trade for his 31 million shares of DirecTV.
Buffett also bought additional stock of several companies he already owns, including General Motors (GM), increasing its stake by 22% to 50 million shares, Twenty-First Century Fox (FOX) by 44% to nearly 9 million shares, and IBM (IBM, Tech30) by 2%.
After the announcement of Berkshire Hathaway’s purchases, shares of AT&T, GM, Fox and IBM were all were up more than the broader market in morning trading Monday.
Profit like Warren
While Warren Buffett operates at a different level than most traders, it’s important to remember that he is subject to the same rules, and he uses the same strategies. He wins, and he loses (for example, last month it was announced that Berkshire lost $2 billion on its IBM investment).
At MTI, we train Forex and equities investors every day, and our experience and knowledge can lead you to your own success story. It will be interesting to see what effects Buffett’s buys and sells have on the markets overall — but you can rest assured that our experts will help you know the best strategies to employ whatever happens.
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