Warren Buffett bought 3 new shares in Q3;  2 jumped today

Warren Buffett Berkshire Hathaway (BRKB) bought shares of Taiwan Semiconductor (TSM) for the first time in the third quarter of the bear market, while dumping Store Capital (STOR) entirely.


What Warren Buffett bought, sold in Q3

Buffett-led Berkshire acquired approximately 60 million shares of Taiwan Semiconductor worth more than $4.1 billion, according to Berkshire’s latest 13F filed late Monday, tracked by whalewisdom.com.

In October, Taiwan Semi, also known as TSMC, is the world’s largest contract chip manufacturer, posted a win and a raise in Q3, bucking weakness in the chip sector. TSM shares rose 10.6% to 80.50 the stock market todayextending last week’s rally above the 50-day moving average.

Besides Taiwan Semi, Berkshire Hathaway opened positions in Louisiana Pacific (LPX) and Jefferies Financial Group (JEFF) during the bear market in the third quarter. Berkshire bought 5.8 million shares of Louisiana Pacific, a maker of engineered wood building products, worth nearly $297 million. He bought approximately 433,000 shares of Jefferies Financial Group, a global investment banking and capital markets firm, worth $12.8 million.

Shares of LPX jumped 7.8% to 63.52 on Tuesday, jumping above the 200-day moving average. JEF shares rose 2.1% to 37.67 on Tuesday.

In Q3, Berkshire increased existing stakes in several stocks: c Occidental Petroleum (OXY) with 22%; Paramount Global (AL) with 16%; RH (RH), ahead of Restoration Hardware, up 8%; Celanese (CE) by 6%; and Chevron (CVX) by 2%. The conglomerate bought another 35.8 million shares of OXY stock; 12.8 million more shares of Paramount Global, whose Paramount+ video streaming service competes with Netflix and Disney+; and another 3.9 million shares of CVX stock. PARA shares were up 5.1% by 7.44pm on Tuesday.

While exiting Store Capital last quarter, Berkshire reduced existing stakes in other stocks: c US Bancorp (USB) with 55%; Bank of New York Mellon (BK) with 14%; Activision Blizzard (ATVI) with 12%; General Motors (GM) by 5%; and Kroger (KR) by 4%.

Store Capital, a real estate investment trust, or REIT, is being acquired by GIC, a global institutional investor, and funds managed by Oak Street in an all-cash deal valued at $14 billion.

The Berkshire’s third quarter earnings report on Nov. 5 already revealed that Buffett was a net buyer of stocks, including OXY shares, during the choppy Q3. But investors awaited the 13F filing, which arrived Monday after the market closed, to learn more about which stocks Buffett bought and sold last quarter.

The S&P 500 ended the third quarter in a bear market for the second quarter in a row.

Berkshire Hathaway’s Best Stocks

Berkshire retained several top holdings in the third quarter Warren Buffett’s Dow portfolio is heavy steady, according to a 13F filing late Monday.

The conglomerate’s highest shareholding by market value is An apple (AAPL), with the bet worth a whopping $123.66 billion at the end of September. But Bank of America (BAC) is the #1 stock by number of shares owned, with AAPL stock #2 by that metric. Additional, American Express (AXP), Coke (KO) and Kraft Heinz (KHC) number of avg Buffett’s largest stocks by number of shares.

It is a smaller but notable holding Amazon (AMZN). Berkshire maintained positions in each of these holdings during the most recent quarter.

Warren Buffett has a long track record of beating the market with his picks. The Berkshire boss has earned a reputation as a buy-and-hold investor, holding stocks for years or even decades. The company has owned AAPL stock since Q1 2016 and KO stock since Q1 2001, for example.

Investors are tracking Berkshire’s 13F filings to see where the investing legend is putting his money in the stock market. A new purchase of shares by Warren Buffett could cause this company’s shares to jump.

Time the Market with IBD’s ETF Market Strategy

In the third quarter, Warren Buffett’s stock purchases exceeded stock sales by $3.7 billion, including $2 billion invested in OXY stock. Berkshire Hathaway also bought back $1.05 billion of its own stock.

Amid the volatility in the third quarter, Berkshire posted a $10.5 billion loss on capital investments. Meanwhile, its cash holdings rose from $105.4 billion at the end of June to $109 billion at the end of September.

So far in 2022, Berkshire has accelerated the pace of investment activity. It has significantly raised its energy bet since Russia’s Feb. 24 invasion of Ukraine, which disrupted global oil and gas supplies. In 2021 Berkshire Hathaway mostly played defense as the stock market went up.

Berkshire’s Class B shares gained 0.4% to 310.12 at the stock market today. Apple shares advanced 1.2% to 150.04.

Find Aparna Narayanan on Twitter at @IBD_Aparna.


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