This article is part of a series that provides a continuous analysis of the changes to the Berkshire Hathaway's 13F equity portfolio quarterly. It is based on Warren Buffet's regulatory 13F form filed on 15.05.2019. Please visit our series of articles to track 10 years of Berkshire Hathaway's investment portfolio for an idea of how his holdings have evolved over the years and our previous update for the moves in Q4 2018.
Berkshire Hathaway's (BRK. A, BRK.B) The 13F equity portfolio value increased ~ 9%, from $ 183B to $ 199B. The top five positions account for ~ 64% of the portfolio: Apple Inc. (AAPL), Bank of America (BAC), Wells Fargo (WFC), Coca-Cola (KO) and American Express (AXP). There are 45 individual stock positions, many of which are small in relation to the overall size of the portfolio.
Note : In Q1 2019, Berkshire Hathaway repurchased ~ 6.5 M B shares of ~ $ 201 and 1258 A shares for a total of $ 1.7B. Book value from Q1 2019 was ~ $ 150 per share. Then the buy back came to ~ 134% of the book value. In July 2018, Berkshire had announced a plan to make its buyback criteria more flexible – instead of 120% of the Book Value criteria, Buffett and Munger had to agree that Berkshire was trading below its own value. Class B shares are currently trading at ~ $ 203.
Amazon.com (AMZN): AMZN is a 0.43% of the portfolio record established in the quarter at prices between $ 1500 and $ 1820 , and the stock
Verizon Communications (VZ): The small, small remaining stake in VZ was disposed of in the quarter.
JPMorgan Chase (JPM) and PNC Financial (PNC): These two positions established in Q3 2018 showed significant increases over the past two quarters. The 3.02% JPM interest was established at prices between $ 104 and $ 119 and increased by ~ 40% last year at prices between $ 92 and $ 115. There was another ~ 20% stake in the quarter at prices between $ 97 and $ 107. The shares are now trading at ~ $ 111. The 0.53% PNC bet was established at prices between $ 134 and $ 146, increasing by just over a third in the last quarter at prices between $ 110 and $ 140. The stock is now at ~ $ 130.
Delta Air Lines (DAL): DAL was a very small 0.19% position in Q3 2016. The stake saw a large 850% increase in Q4 2016 at prices between $ 39 and $ 52. The shares are now trading at $ 55.30, and the stock is now at 1.84% of the portfolio. This was an increase of 20% in Q2 2018 at prices between $ 49 and $ 56, followed by an increase of 8% in the quarter of $ 49.50.
Note : Berkshire controls ~ 10% of DAL, and their total cost base is ~ $ 44.
Red Hat Inc. (RHT) : RHT is a 0.47% of The portfolio position was established last year and increased by ~ 22% in the quarter. In October, IBM decided to buy Red Hat for $ 190 per share cash. The stock is now at ~ $ 186.
Wells Fargo & Co. : WFC is Buffetts third largest stake of 9.93% of the 13F portfolio. In the latest activity, around 9 million shares were sold in Q2 2017 of around $ 53 per share to bring the stake below the 10% threshold. The shares are now trading at $ 46.24. Berkshire's cost base is ~ $ 24.50. The last six quarters had seen marginal trimming, and it was followed by ~ 4% selling this quarter.
Southwest Airlines (LUV): LUV is a 1.40% portfolio share purchased in Q4 2016 at prices between $ 38.50 and $ 51, increasing by ~ 10% in the following quarter at prices between $ 49, 50 and $ 59. Q2 2018 saw another 20% increase in stock prices between $ 50 and $ 57. The stock is now $ 52.24. It was less trimming in the last three quarters.
Note : Berkshire owns ~ 9.5% of LUV, and their total cost base is ~ $ 42.
Charter Communication (CHTR): CHTR is a ~ 1% of portfolio position. It was established over the last three quarters of 2014 at prices between $ 118 and $ 170. In Q2 2015, the position was again increased by ~ 42% at prices between $ 168 and $ 193, and it was followed by another ~ 21% increase in the quarter at prices between $ 167 and $ 195. The stock today trades at ~ $ 380, compared to Berkshire's $ 178 cost base. The past six quarters had seen a combined ~ 25% sale at prices between $ 250 and $ 395, followed by a 20% reduction in the quarter at prices between $ 285 and $ 366.
Phillips 66 (PSX): PSX is now a very small 0.26% of its portfolio. It's a long-term position. In the latest activity, Q2 and Q3 2015 had a large position (~ 62M shares) built at prices between $ 70.50 and $ 84.50. Phillips 66 purchased 35M shares from Berkshire in the first quarter of 2018 to $ 93,725 per share. It was a ~ 24% sale in Q2 2018 at prices between $ 95 and $ 122, and it was followed by a ~ 56% reduction in the next quarter at prices between $ 109 and $ 123. Last quarter saw another ~ 23% sales at prices between $ 78.50 and $ 118, followed by a ~ 50% reduction in the quarter at prices between $ 86 and $ 99. The stock is now at $ 88.01.
Note : Berkshire avoided disclosing PSX spelling in the original Q2 2015 13F using "paragraph 13 (F) confidential processing requests". A change filed on 9/4/2015 revealed the activity. Berkshire controlled ~ 16% of the PSX at that time.
Apple Inc .: AAPL is currently the largest 13F portfolio of 22%, and Berkshire's stake is ~ 5% of its business. Established in Q1 2016 at prices between $ 93 and $ 110, it increased by ~ 55% the next quarter at prices between $ 90 and $ 112. Q4 2016 increased by a 275% increase at rates between $ 106 and $ 118, and it was followed by stake doubling in January 2017 at prices between $ 116 and $ 122. That was another 23% increase in Q4 2017 at prices between $ 154 and $ 176, followed by a 45% increase in Q1 2018 at prices between $ 155 and $ 182. Since then, activity has been low. The stock is currently at ~ $ 190.
Note : Berkshire's total cost base on Apple was ~ $ 141 per share.
Bank of America: Berkshire established this vast tree) ~ 12% of the portfolio position through the exercise of Bank of America warrants. Subscription rights had a price of $ 7.14, compared to the current price of $ 28.71. The cost of exercising was $ 5B, and it was funded with $ 5B in 6% preferred stock they had. That was an increase of 30% in the quarter 2018 at prices between $ 27.75 and $ 31.80 and a marginal increase last year.
Note : Berkshire's stake in Bank of America is ~ 9.5% and its total cost base as of Q4 2018 is $ 12.68.
American Express and Coca-Cola: These two very large stakes were kept stable over the past 5 years. Buffett has said that these positions will be held "permanently". Berkshire's cost base for AXP and KO is around $ 8.49 and $ 3.25 respectively, and the holdings are 17.6% and 9.4%, respectively.
Kraft Heinz Co. (KHC): KHC is currently a large position of 5.33% of the portfolio. Kraft Heinz began trading in July 2015, with Berkshire holding over 325 million shares (~ 27% of the business). The stake arose from two transactions with 3G Capital as a partner: a net investment of $ 4B in 2013 for half of Heinz, and an investment of $ 5B for the purchase of the Kraft Foods Group in early 2015. Berkshire's cost base on KHC is ~ $ 30 per share, compared to today's price of $ 32.44.
US Bancorp (USB): The 3.12% USB stick has been in the portfolio since 2006. The original position tripled in the 2007-2009 time frame. It was then kept relatively stable until Q2 2013, when ~ 17M shares were purchased at prices between $ 32 and $ 36. H1 2018 had seen a 16% increase in prices between $ 49 and $ 58, and it was followed with an increase of 25% in Q3 2018 at prices between $ 50 and $ 55. The shares are now at $ 51.35, and Berkshire's cost base is ~ $ 38. That was an increase of 4% in the quarter in the previous quarter.
Moody's Inc. (MCO): MCO is a 2.24% of the 13F portfolio investment. It's a very long-term position, and Buffetts cost base is $ 10.05. The shares are now trading at $ 189. Berkshire controls ~ 13% of the business.
Bank of New York Mellon Corp. (BK) : BK is a ~ 2% of the 13F portfolio investment. Most of the original position was purchased in Q2 2012 at prices between $ 19.50 and $ 25. In the recent activity, 2017 saw an increase of 180% at prices between $ 43.50 and $ 55 while last year saw another third increase at prices between $ 44.50 and $ 58.50. The shares are currently trading at $ 46.84. Berkshire's cost base on BK is ~ $ 46 per share.
Goldman Sachs (GS): GS is a 1.77% of the portfolio established in Q4 2013. Berkshire received $ 5B worth of warrants to purchase GS shares during a financial crisis (October 2008) to a price of $ 115 (43.5 million shares) to expire on October 1, 2013. Buffett exercised just before the expiration to start this long position. In the latest activity, Q3 2018 had a 40% increase in the stake between $ 220 and $ 243. It is currently $ 199. The general cost base is ~ $ 127 per share.
General Motors (GM) : GM is a 1.34% of the 13F portfolio position first purchased in Q1 2012 at prices between $ 21 and $ 30. increased by about six times (10 million shares to 60 million shares). Q4 2017 saw a reduction: ~ 17% selling at prices between $ 40.50 and $ 46.50. That was an increase of 38% in the quarter last quarter at prices between $ 30.50 and $ 38.50. The shares are now trading at $ 37.35. Overall, Berkshire's cost base is on GM ~ $ 32.
Verisign Inc. (VRSN) : The VRSN was first purchased in Q4 2012 at prices between $ 34 and $ 49.50. The position more than doubled in Q1 2013 at prices between $ 38 and $ 48. The purchase continued until Q2 2014 at rates up to $ 63. The stock is currently trading at ~ $ 198 and the position is 1.18% off portfolio (~ 10% of the business).
DaVita Inc. (DVA) : DVA is a ~ 1% of the portfolio position that was aggressively built up over several quarters in the 2012-13 time frame at prices between $ 30 and $ 49. at $ 50.29, compared to Berkshire's total cost base of ~ $ 45 per share.
Note : Berkshire stake in DaVita is ~ 23%. In May 2013, Berkshire's Ted Weschler entered into an agreement with DVA, which limits open market purchases to 25% of the company.
Liberty SiriusXM Group (LSXMA LSXMK): resulting from Liberty Media's recapitalization in April 2016. Shareholders received 1 share of Liberty SiriusXM Group, 0.25 shares in Liberty Media Group , and 0.1 shares in the Liberty Braves Group for each share held. Berkshire had 30M shares in Liberty Media, which he received the same amount of Liberty SiriusXM Group shares. It was an increase of 40% in the quarter 2017 on a cost basis of ~ $ 40 per share. The shares are now at $ 38.51.
Note : LSXMA / LSXMK trades at a significant NAV discount for the parent company's (SIRI) valuation. For investors attempting to follow Buffett, LSXMA / LSXMK is a good option to consider for further research.
United Continental Holdings (UAL): A small small 0.18% UAL position in Q3 2016 saw a large ~ 540% increase in Q4 2016 at prices between $ 52.50 and $ 76 It's currently at $ 82. The stake is 0.88% of the portfolio. Last year, it had seen a 22% sale at prices between $ 63 and $ 98.
Note : Berkshire controls ~ 8% of the UAL, and their total cost base is ~ $ 55.
USG Corporation ( USG 19659014]: USG was a very long-term stake, and there was a significant increase of 21.39M shareholding in Q4 2013 due to the conversion of notes to USD 11.40 per share. – Berkshire bought convertible notes in the financial crisis (2/2009), and USG chose to redeem them on 12/16/2013. Q2 2014 had a ~ 12% increase in shareholdings at prices between $ 30 and $ 33. In March 2018, the USG Board rejected a $ 42 per share offer from Germany's Knauf. Partly in response, Berkshire Hathaway revealed in a regulatory filing in April that they would vote against USG directors in the upcoming annual meeting. In June, USG accepted a cash offer of $ 44 per share (including 50c special dividend) from Knauf, and the transaction closed last month. Buffett controlled around 31% of the business, and his cost base was ~ $ 19.
American Airlines (AAL): The AAL share was first purchased in Q3 2016. The position is now at 0.70% of the portfolio . The original purchase was at prices between $ 28 and $ 39, and doubled in Q4 2016 at prices between $ 36.50 and $ 50. The stock is now at $ 32.17. There was a ~ 3% trimming in Q2 2018 and a corresponding reduction in the next quarter.
Note : Berkshire controls ~ 9% of AAL.
Sirius XM Holdings (SIRI): The 0.39% SIRI bet was purchased in Q4 2016 at rates between $ 4.08 and $ 4.61. Q2 2017 saw sales: a ~ 20% reduction at prices between $ 4.70 and $ 5.50. The stock is currently at $ 5.66.
Teva Pharmaceutical (TEVA): TEVA is a very small 0.34% of the portfolio established in Q4 2017 at prices between $ 11.20 and $ 19.33, and more than doubling the next quarter at prices between $ 16.50 and $ 22. The shares are now trading at $ 11.48.
Liberty Global PLC (LBTYA, LBTYK): The position was established in Q4 2013 at prices between $ 37.50 and $ 44.50 (adjusted for 03/2014 share split) and increased in the following two quarters to prices between $ 38.50 and $ 46. The three quarters through Q1 2016 also increased overall 30% at rates between $ 30 and $ 50. Q2 2016 saw a ~ 17% further increase at rates between $ 27 and $ 39. is now $ 25.03 and the stock is 0.34% of the 13F portfolio.
Synchrony Financial (SYF): SYF is a 0.33% of portfolio position purchased in Q2 2017 at prices between $ 26.50 and $ 34.50, and increased by ~ 20% next quarter at rates between $ 28.50 and $ 31.25. The stock is now at $ 35.02.
Note : Synchronization is the private credit card company split from GE that began trading in August 2014 at ~ $ 23 per share.
Store Capital (BIG): Large ownership of 0.31% was established in Q2 2017 in a private placement transaction of $ 20.25 per share. The stock is now at $ 34.10.
Axalta Coating Systems (AXTA): AXTA is a small 0.31% of the portfolio established in Q2 2015 at prices between $ 28 and $ 36, and increased by ~ 16% next quarter at prices between $ 24.50 and $ 33.50. The shares are currently trading at $ 25.67. Berkshire owns 10.1% of the business.
Suncor Energy (SU) and StoneCo Ltd. (STNE) : These two stakes were established last year. The 0.17% SU bet was bought at a price between $ 26 and $ 40, and it now goes for $ 32.41. STNE is a 0.29% position purchased at ~ $ 21 per share, compared to today's price of $ 26.93. For investors who try to follow, there are good alternatives to consider for further research.
Note 1 : Berkshire has an 11% stake in StoneCo. In October 2018, WSJ reported that Berkshire had invested ~ $ 300 million each in two fintechs: India's Paytm and Brazil's StoneCo. The Paytm investment was completed in August 2018, while the StoneCo acquisition followed its IPO in October 2018.
Note 2 : Suncor Energy has had a tour of the portfolio. There was a 0.48% position purchased in Q2 2013 at prices between $ 27 and $ 32. This interest was allocated in Q2 and Q3 2016 at prices between $ 25.50 and $ 29.
Restaurant Brands International (QSR): QSR is a 0.28% of the 13F portfolio position established in Q4 2014 at prices between $ 35 and $ 42. The shares are now trading well above this range of $ 67.82. It began trading in December 2014 following a merger / rename transaction between Tim Hortons and Burger King Worldwide.
Note : Berkshire's stake in the business is ~ 4.2%.
Travel Companies (TRV): TRV is a very small 0.39% position purchased in Q3 2018 at prices between $ 112 and $ 134, and it is now trading at ~ $ 148.
Costco Wholesale ( COST, Johnson & Johnson (JNJ), Liberty LiLAC Group (LILA, LILAK), Mondelez International (MDLZ), M & T Bank Corp. (MTB), Mastercard Inc. (MA), Procter & Gamble (PG), Torchmark Corporation (TMK), United Parcel Service (UPS) and Visa Inc.: These are very small positions (less than ~ 0.5 % of the portfolio each) held in the quarter.
Note 1 : Since November 2015, Warren Buffett is known to own ~ 8% of Seritage Growth Properties (SRG) at a cost of $ 36.50 in his personal portfolio. It's currently $ 45.57. SRG is a Sears REIT spin-off (OTCPK: SHLDQ) which began trading in July 2015.
Note 2 : Berkshire Hathaway also has a 225M share position in BYD Company on a cost basis of ~ $ 1 per share (~ $ 2 per share in the form of fines – OTCPK: BYDDY). ADR currently trades at $ 12.37.
The worksheet below emphasizes changes in Berkshire Hathaway's 13F inventories in Q1 2019:
] Enlightenment: I is / we are long BAC, KHC. I wrote this article myself, and it expresses my own opinions. I do not receive compensation for it (other than from Seeking Alpha). I have no business relationship with a company whose stock is mentioned in this article.