Buffett always sells stocks, except his own

Warren Buffett continues to play defense on the stock market, reducing Berkshire Hathaway (BRKB) once again exposure to equities. Berkshire Hathaway’s treasury hit another record high.


Berkshire Hathaway released its third quarter report on Saturday. Sales of Berkshire shares were $ 1.95 billion net, down from $ 1.1 billion in the second quarter but down from $ 3.9 billion in the first quarter. This is the fourth quarter in a row that Warren Buffett is a net seller of stocks.

Buffett was a big buyer in Warren Buffett’s ultimate stock. Berkshire repurchased $ 7.6 billion of BRKB shares, up from $ 6 billion in the second quarter and $ 6.6 billion in the first quarter. Since the start of the year, BRKB share buybacks total $ 20.6 billion compared to $ 24.7 billion for the whole of 2020.

Berkshire Hathaway’s liquidity swelled to $ 149.2 billion as of September 30, from $ 144.1 billion at the end of the second quarter and $ 145.4 billion at the end of the first quarter.

Buffett’s equity portfolio remains highly concentrated. In the third quarter, 68% of its value was made up of Apple (AAPL) ($ 120.4 billion), Bank of America (BAC) ($ 31.3 billion), American Express (AXP) ($ 18.3 billion), and Coca Cola (KO) ($ 21.9 billion).

It’s a heavy investment portfolio from Dow. Apple stock, American Express and Coca-Cola are all Dow Jones components.

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Berkshire Gains

Berkshire Hathaway’s profits, which include investments and derivatives, fell to $ 10.34 billion from $ 30.14 billion a year earlier. Berkshire’s earnings on a GAAP basis can be very volatile.

Berkshire profits rose 18% on an operating basis to $ 6.882 billion. Higher profits from its rail, utilities and energy divisions offset a larger loss in insurance underwriting.

BRKB stock

BRKB stock edged up 0.1% to 287.88 during Friday trading. The stocks have a buy point of 292.32 points in a consolidation going back six months.

However, the line of relative strength for BKRB stock fell to its lowest level in eight months. The RS line, the blue line in the graph provided, tracks a stock’s performance against the S&P 500 Index.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.


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