"Tracking Warren Buffett’s Berkshire Hathaway Portfolio – Q4 2021 Update"
"Berkshire Hathaway's 13F stock portfolio value increased from ~$293B to ~$331B.Their largest three holdings are at over two-thirds of the entire portfolio.Berkshire Hathaway increased Chevron while reducing AbbVie,  Marsh & McLennan, Bristol-Myers Squibb, Visa, and Royalty Pharma during the quarter. They also dropped Teva.This article is part of a series that provides an ongoing analysis of the changes made to Berkshire Hathaway’s 13F stock portfolio on a quarterly basis. It is based on Warren Buffett’s regulatory  filed on 2/14/2022. Please visit our  article series for an idea on how his holdings have progressed over the years and  for the moves in Q3 2021.During Q4 2021, Berkshire Hathaway’s (BRK.A) (BRK.B) 13F stock portfolio value increased ~13% from ~$293B to ~$331B. The top five positions account for ~79% of the portfolio: Apple Inc., Bank of America, American Express, Coca Cola, and Kraft Heinz. There are 42 individual stock positions many of which are minutely small compared to the overall size of the portfolio.() are a treasure trove of information and are a very good source for anyone starting out on individual investing.Note: In Q3 2021, Berkshire Hathaway repurchased 27.20M Class B Equivalent Shares for a total outlay of $7.63B. The average price paid was ~$280. Book Value as of Q3 2021 was ~$210 per share. So, the repurchase happened at ~133% of Book Value. In July 2018, Berkshire had announced a plan to make their re-purchase criteria to be more flexible – instead of the 120% of Book Value criteria, Buffett & Munger had to agree that Berkshire was trading below intrinsic value. The Class B shares currently trade at ~$316.New Stakes:NU Holdings (NU), Activision Blizzard (ATVI), and Liberty Media Formula One (FWONK): These are the new positions this quarter. NU had an IPO in December. Shares started trading at ~$10 and currently goes for $9.15. Berkshire’s ~$1B stake goes back to a funding round in early 2021 when the valuation was ~$30B. Current valuation is ~$40B. ATVI is a 0.29% of the portfolio position established this quarter at prices between ~$57 and ~$81 and the stock currently trades at $81.52. FWONK is a minutely small 0.04% of the portfolio position established during the quarter.Note: Microsoft (MSFT) is acquiring Activision Blizzard in a $95 per share all-cash deal announced last month.Stake Disposals:Teva Pharmaceuticals (TEVA): TEVA was a 0.14% of the portfolio stake established in Q4 2017 at prices between $11.20 and $19.33 and more than doubled next quarter at prices between $16.50 and $22. The elimination this quarter was at prices between ~$7.90 and ~$10.20. The stock currently trades at $8.46.Sirius XM Holdings (SIRI): The disposal came about as a result of an exchange offer with Liberty Sirius XM done in .Stake Increases:Chevron Corp (CVX): CVX is a 1.36% of the portfolio position purchased in Q3 2020 at prices between ~$72 and ~$91 and increased by ~10% next quarter. Q1 2021 saw a ~50% selling at prices between ~$85 and ~$112 while last quarter there was a ~25% stake increase at prices between ~$94 and ~$106. That was followed with another one-third increase this quarter at prices between ~$102 and ~$119. The stock currently trades at ~$134.Note: Berkshire likely avoided disclosing these stakes in the Q3 2020 13F filing by making use of the “”. An amendment filed later disclosed the activity.Liberty SiriusXM Group (LSXMA) (LSXMK): The tracking stock was acquired as a result of Liberty Media’s recapitalization in April 2016. Shareholders received 1 share of Liberty SiriusXM Group, 0.25 shares of Liberty Media Group and 0.1 shares of Liberty Braves Group for each share held. Berkshire held 30M shares of Liberty Media for which he received the same amount of Liberty SiriusXM Group shares. There was a ~40% stake increase in Q2 2017 at a cost-basis of ~$40 per share. Q2 2020 saw another ~27% stake increase primarily thru the $25.47 per share rights offering the company announced in May. In November, Berkshire exchanged their 43.66M share stake in Sirius XM for 5.35M additional shares of Liberty Sirius XM Class A tracking stock in a transaction with the parent business. This accounts for the ~9% stake increase this quarter. The stock currently trades at $51.34.RH Inc. (RH): The 0.29% of the portfolio RH position was established in Q3 2019 at prices between $119 and $174 and increased by ~40% next quarter at prices between $165 and $242. It is now at ~$427. There were minor increases in the last four quarters.Note: Berkshire controls 8.5% of the business.Floor & Décor Holdings (FND): The minutely small 0.03% of the portfolio FND position was established last quarter at prices between ~$104 and ~$131 and it is now at ~$108. There was a minor ~3% increase this quarter.Stake Decreases:Kroger Company (KR): KR is a 0.84% of the portfolio position established in Q4 2019 at prices between $24 and $29. Last five quarters had seen a ~225% stake increase at prices between ~$30 and ~$40. The stock currently trades at $46.41. There was a marginal reduction this quarter.Note: Berkshire’s ownership stake in Kroger is 8.4%.Charter Communications (CHTR): CHTR is a 0.75% of the portfolio position. It was established during the last three quarters of 2014 at prices between $118 and $170. In Q2 2015, the position was increased by ~42% at prices between $168 and $193 and that was followed with another ~21% increase the following quarter at prices between $167 and $195. The six quarters thru Q4 2018 had seen a combined ~25% selling at prices between $250 and $395 and that was followed with a ~20% reduction in Q1 2019 at prices between $285 and $366. Last two quarters saw another ~25% reduction at prices between ~$605 and ~$821. The stock currently trades at ~$610 compared to Berkshire’s cost-basis of ~$178. They are harvesting gains.AbbVie Inc. (ABBV), and Bristol-Myers Squibb (BMY): Berkshire added these two picks in Q3 2020. The stakes received an allocation of ~$1.8B each that quarter. The ABBV position was increased by ~20% in Q4 2020 at prices between ~$81 and ~$109. Last three quarters had seen a ~45% reduction at prices between ~$106 and ~$121. This quarter saw another ~80% selling at prices between ~$107 and ~$136. The stock currently trades at ~$145 and the stake is now minutely small at 0.12% of the portfolio. BMY position had seen a one-third selling over the last three quarters at prices between ~$59 and ~$69. It was sold down by ~75% this quarter at prices between ~$53.50 and ~$62.50. It currently trades at ~$68.Note: Berkshire’s overall cost-basis on ABBV and BMY were ~$91 and ~$60 per share respectively.Marsh & McLennan (MMC): MMC was a small 0.14% of the portfolio stake established in Q3 2020 at prices between ~$107 and ~$119. There was a ~25% stake increase in Q4 2020 at prices between ~$103 and ~$119. That was followed with a similar increase next quarter at prices between ~$108 and ~$122. Q2 2021 saw an about turn: ~20% selling at prices between ~$122 and ~$142. That was followed with a roughly one-third reduction last quarter at prices between ~$139 and ~$161. The stake was almost eliminated this quarter at prices between ~$151 and ~$174. The stock is now at ~$154.Note: Berkshire likely avoided disclosing this stake in the Q3 2020 13F filing by making use of the “”. An amendment filed in February disclosed the activity.Royalty Pharma plc (RPRX): The 0.10% of the portfolio RPRX stake was purchased last quarter at prices between ~$36 and ~$42 and the stock currently trades at $40.34. There was a roughly one-third selling this quarter at prices between ~$35 and ~$42.50.MasterCard Inc. (MA) and Visa Inc. (V): These two small stakes have seen trimming in the last two quarters.Kept Steady:Apple Inc. (AAPL): AAPL is currently the largest 13F portfolio stake by far at ~48%. It was built between Q1 2016 and Q1 2018 at a cost-basis of ~$35 per share. Since then, the activity has been minor. The stock currently trades at ~$173.Note: Apple stock split 4-for-1 in August. The prices quoted above are adjusted. Berkshire has a ~5.4% ownership stake in the business.Bank of America (BAC): Berkshire established this large (top three) ~14% of the portfolio position through the exercise of Bank of America warrants. The warrants had a strike price of $7.14 compared to the current price of $47.79. The cost to exercise was $5B and it was funded using the $5B in 6% preferred stock they held. There was a ~30% stake increase in Q3 2018 at prices between $27.75 and $31.80. Since then, the activity has been minor.Note: Berkshire’s overall cost-basis is ~$14 and ownership stake is ~12%.American Express (AXP) and Coca Cola (KO):  These two very large stakes were kept steady during the last ~9 years. Buffett has said these positions will be held “permanently”. Berkshire’s cost-basis on AXP and KO are at around $8.49 and $3.25 respectively and the ownership stakes are at ~18% and ~9.5% respectively.Kraft Heinz Co. (KHC): KHC is currently a fairly large position at 3.53% of the portfolio. Kraft Heinz started trading in July 2015 with Berkshire owning just over 325M shares (~27% of the business). The stake came about because of two transactions with 3G capital as partner: a ~$4B net investment in 2013 for half of Heinz and a ~$5B investment for the acquisition of Kraft Foods Group in early 2015. Berkshire’s cost-basis on KHC is ~$30 per share compared to the current price of ~$35.Moody’s Inc. (MCO):  MCO is a 2.91% of the 13F portfolio stake. It is a very long-term position and Buffett’s cost basis is $10.05.  The stock currently trades at ~$330. Berkshire controls ~13% of the business.Verizon Communications (VZ): The 2.49% VZ position was built in H2 2020 at prices between $54 and $62 and the stock is now at $53.36. There was a ~8% stake increase in Q1 2021.Note 1: Verizon is currently trading below Berkshire’s overall cost-basis of ~$59 per share.Note 2: Berkshire likely avoided disclosing this stake in the Q3 2020 13F filing by making use of the “”. An amendment filed in February disclosed the activity.US Bancorp (USB): The 2.15% USB stake has been in the portfolio since 2006. The original position was tripled during the 2007-2009 timeframe. It was then kept relatively steady till Q2 2013 when ~17M shares were purchased at prices between $32 and $36. H1 2018 had seen a ~16% increase at prices between $49 and $58 and that was followed with a ~25% increase in Q3 2018 at prices between $50 and $55. The stock is now at $58.61, and Berkshire’s cost-basis is ~$38. They control ~10% of the business.Bank of New York Mellon Corp (BK):  BK is a 1.27% of the 13F portfolio stake. The bulk of the original position was purchased in Q2 2012 at prices between $19.50 and $25. Recent activity follows: 2017 saw a ~180% increase at prices between $43.50 and $55 while 2018 saw another one-third increase at prices between $44.50 and $58.50. The stock currently trades at $62.23. Berkshire’s cost-basis on BK is ~$46 per share and ownership stake is 8.4%.DaVita Inc. (DVA):  DVA is a 1.24% of the portfolio position that was aggressively built over several quarters in the 2012-13 timeframe at prices between $30 and $49. The stock currently trades at ~$117 compared to Berkshire’s overall cost-basis of ~$45 per share. Q3 2020 saw a ~5% (2M shares) selling at $88 per share.Note: Berkshire’s ownership stake in DaVita is ~38%.General Motors (GM):  GM is a 1.06% of the 13F portfolio position that was first purchased in Q1 2012 at prices between $21 and $30. By Q3 2017, the position size had increased by around six-times (10M shares to 60M shares). Q4 2017 saw a reduction: ~17% selling at prices between $40.50 and $46.50. There was a ~38% stake increase in Q4 2018 at prices between $30.50 and $38.50. H1 2021 saw a ~17% selling at prices between $40.50 and $64. The stock currently trades at $49.67. Berkshire’s cost-basis on GM is ~$31.Note: Berkshire’s ownership stake in General Motors is 4.1%.Verisign Inc. (VRSN): VRSN was first purchased in Q4 2012 at prices between $34 and $49.50. The position was more than doubled in Q1 2013 at prices between $38 and $48. The buying continued till Q2 2014 at prices up to $63. The stock currently trades at ~$216 and the position is at ~1% of the portfolio (~10% of the business).Snowflake Inc. (SNOW): SNOW had an IPO last September. Shares started trading at ~$229 and currently goes for ~$300. Berkshire acquired ~2% of the business at the IPO price of ~$120 per share.Amazon.com (AMZN): AMZN is a 0.54% of the portfolio stake established in Q1 2019 at prices between $1500 and $1820 and increased by ~11% next quarter at prices between $1693 and $1963. The stock currently trades at ~$3130.Aon plc (AON): AON is a 0.40% of the portfolio position established in Q1 2021 at prices between ~$202 and ~$234. Next quarter saw a ~7% increase at prices between ~$230 and ~$259. The stock currently trades at ~$285.Store Capital (STOR): The 0.25% STOR stake was established in Q2 2017 in a private placement transaction at $20.25 per share. Q2 2020 saw a ~30% stake increase at prices between $14.50 and $26.50. The stock is now at $30.48.T-Mobile US (TMUS): TMUS is a small 0.18% of the portfolio stake purchased in Q3 2020 at prices between ~$104 and ~$119 and more than doubled next quarter at prices between ~$110 and ~$135. It currently trades at ~$127.StoneCo Ltd. (STNE): STNE is a 0.05% position purchased in Q4 2018 at ~$21 per share. Q1 2021 saw a ~25% reduction at prices between ~$60 and ~$94. The stock is currently at ~$13.Note: Berkshire has a 4.1% ownership stake in StoneCo. In October 2018, WSJ reported that Berkshire had invested ~$300M each in two Fintech’s – India’s Paytm and Brazil’s StoneCo (STNE). The Paytm investment was made in August 2018 while the STNE purchase was following its IPO in October 2018.Wells Fargo & Co. (WFC):  WFC is now a minutely small position. It is a very long-term stake. Recent activity follows: 2019 saw a ~25% selling at prices between $43 and $55. Last three quarters of 2020 had seen another ~85% reduction at prices between ~$21 and ~$33. Q1 2021 saw the position almost eliminated at prices between ~$29.70 and ~$41. Berkshire’s cost-basis is ~$24.50. The stock currently trades at $58.38.Globe Life (GL), Johnson & Johnson (JNJ), Liberty LiLAC Group (LILA) (LILAK), Mondelez International (MDLZ), Procter & Gamble (PG), SPDR S&P 500 Index (SPY), United Parcel Service (UPS), and Vanguard S&P 500 Index (VOO): These small positions (less than ~1% of the portfolio each) were kept steady this quarter. Berkshire’s ownership stake in Global Life is ~6%.Note 1: Since November 2015, Warren Buffett is known to own ~8% of Seritage Growth Properties (SRG) at a cost-basis of $36.50 in his personal portfolio. It currently trades at $9.29. SRG is an REIT spinoff from Sears that started trading in July 2015.Note 2: Berkshire Hathaway also has a 225M share position in BYD Company at a cost-basis of ~$1 per share (~$2 per share in terms of ADRs).  The ADR (BYDDY) currently trades at ~$63.The spreadsheet below highlights changes to Berkshire Hathaway’s 13F stock holdings in Q4 2021:Source: John Vincent. Data constructed from Berkshire Hathaway’s 13F filings for Q3 2021 and Q4 2021.12/10/2021 – NU – Berkshire  $500M at $30B valuation in early 2021 prior to the IPO.11/3/2021 – LSXMA – Liberty’s filing has the following which indicates an exchange was done with WEB – “On November 1, 2021, Liberty entered into an Exchange Agreement (the “Exchange Agreement”) with the counterparties thereto (collectively, the “Holders”) to acquire an aggregate of 43,658,800 shares of Common Stock in exchange (the “Exchange”) for the issuance by Liberty to the Holders of an aggregate of 5,347,320 shares of Liberty’s Series A Liberty SiriusXM Common Stock, par value $0.01 per share, in a transaction intended to qualify as a reorganization within the meaning of Section 368(a)(1)(B) of the Internal Revenue Code of 1986, as amended (the “Code”). The exchange ratio was market-based with no premium. ” -  .Q2 2021 Bullish Rating Reasoning submitted at SA: Berkshire stock is trading at a discount to its intrinsic value. This was validated by Warren Buffett himself as they repurchased $7.63B worth of shares this quarter.11/16/2019 – READER REQUEST - Could you add the total dividends per quarter &amp; value$ for all the privately owned BRK companies such as See's Geico PCP better HomesReal estate Energy cos RRs? – I replied saying updates based on 10Q/10K is what you might be looking for and said that I will try to do something along those lines soon.REMINDER: Update the note about Book Value and Repurchases using my . NOTE: The quarterly reports except Q4 come before 13Fs. So, for Q1 to Q3 include something like the following as a Note: Note: In Q1 2021, Berkshire Hathaway repurchased ~27.5M Class B Equivalent Shares for a total outlay of $6.57B. The average price paid was ~$239. Book Value as of Q1 2021 was ~$195 per share. So, the repurchase happened at ~123% of Book Value. In July 2018, Berkshire had announced a plan to make their re-purchase criteria to be more flexible – instead of the 120% of Book Value criteria, Buffett & Munger had to agree that Berkshire was trading below intrinsic value. The Class B shares currently trade at ~$288.Cost-basis Info from 2020 AR – 3/2021: Cost-Basis: ABBV – 91.37, AXP – 8.49, AAPL - 34.26, BAC – 14.17, BK – 43.66, CHTR – ~173, CVX - ~83, KO – 3.25, GM – 30.51, Itochu – ITOCY – 22.90, MRK – ~83, MCO – 10.05, USB - ~38, VZ – 59.24. Previous Info: GS – 71.54, JPM – 109, LUV – 41.55, UAL – 54.47, V – 34, WFC – 20.36.Regulatory filings from 8/17/2021 to 11/16/2021: 13G/A – 11/1 – LSXMA – 20.21M shares – 19.7% of business."