Two stocks that were liquidated were energy company Philips 66 and traveller insurance (TRV).
Buffett bought Philips 66 in the second quarter of 2012 for the first time. He has been reducing his position since the first quarter of 2018 until the first quarter of 2020. The stock fell to $39.14 on March 18, but rebounded to $70.93 on May 15.
In addition, Buffett also cleared the position of traveller insurance company. In the third quarter of 2018, Buffett just established a position in this stock. The business of the company is mainly commercial insurance and property insurance, ranking first in the United States. Also on March 18, the stock hit a nearly one-year low of $76.99, before gradually rebounding to $90.31.
In addition, financial stocks were also sold by Buffett. Berkshire Hathaway sold more than 10 million shares of Goldman Sachs in the first quarter, according to documents. Buffett opened positions in Goldman Sachs in the fourth quarter of 2013, and then increased positions many times. By the end of 2019, his shares were worth 2.3 billion US dollars, accounting for 2.9% of the investment bank. As of the end of the first quarter, Berkshire Hathaway had only 1.9 million shares of Goldman Sachs, less than 0.6% of which is to say, Buffett reduced 10.08 million shares of Goldman Sachs by 84%. According to the first quarter report, Goldmans net profit was $1.21 billion, a significant decline on a month on month basis, with a net profit of $1.92 billion in the fourth quarter of 2019. Goldman shares closed at $171.87 on May 15.
In addition, Buffett also reduced 1.8 million shares of JPMorgan Chase, currently holding 57.7 million shares.
Bank stocks have always been Buffetts favorite. At the previous online shareholders meeting, Buffett also said that at present, the banking system will not have too much problem. Although there may be some conditions for energy companies or consumer credit, the current banking system has sufficient capital and a lot of reserves in the first quarter, so the banking industry is not our main concern.
However, Buffett seems to be a little repetitive in the operation of banking stocks. On April 15, Berkshire Hathaway increased its stake in United Bank of America at a cost of about $33.33. After the increase, Buffett held 151 million shares of United Bank of America, an increase of 18.51 million shares over the end of December 2019. Less than a month later, however, the company filed documents showing that it sold 497786 shares of United Bank of America from May 11 to 12, with an average selling price of $33.04.
Berkshire Hathaway liquidates and reduces individual shares in the first quarter of 2020
For aviation stocks, Buffett increased his holdings in United Airlines and delta in the first quarter, while reducing his holdings in Southwest Airlines and American Airlines. However, at the online shareholders meeting held on May 3, Beijing time, Buffett acknowledged that Berkshire Hathaway had sold all positions of four major US airlines (American Airlines, Delta, Southwest Airlines and United Airlines).
Buffett said he made an understandable mistake in assessing airline stocks, with prices plummeting as travel around the world stopped due to the new crown outbreak. I dont know if Americans will change their living habits, or if they will be semi closed. Economically, I dont know what people will do in the future. When we sell anything, we sell it all. Were not going to sell part of it, were going to sell it all, Buffett said. Well change our mind and sell it all. If we change our mind, we will not do it half way, and we will go through it all at once. When we may sell it, the selling price is much lower than the purchase price. However, the airline stock is always traded in large amount, so we sold the whole stock. Source: surging news editor: Wang Xiaowu NF