"Tracking Warren Buffett’s Berkshire Hathaway Portfolio – Q3 2020 Update"
"Berkshire Hathaway's 13F stock portfolio value increased from ~$202B to ~$229B this quarter.Their largest three holdings are at two-thirds of the entire portfolio.Berkshire Hathaway reduced financials while adding several positions in the big-pharma area.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 11/16/2020. Please visit our  article series for an idea on how his holdings have progressed over the years and  for the moves in Q2 2020.During Q1 2020, Berkshire Hathaway’s (BRK.A) (BRK.B) 13F stock portfolio value increased ~13% from ~$202B to ~$229B. The top five positions account for more than three-quarters of the portfolio: Apple Inc., Bank of America, Coca Cola, American Express, and Kraft Heinz. There are 46 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 1: In Q3 2020, Berkshire Hathaway repurchased ~45M Class B Equivalent Shares for a total outlay of $9.26B. The average price paid was ~$206. Book Value as of Q3 2020 was ~$174 per share. So, the repurchase happened at ~118% of Book Value. The Class B shares currently trade at ~$233.Note 2: it was  in August that Berkshire had invested 5% passive stake each in 5 Japanese trading companies.New Stakes:AbbVie Inc. (ABBV), Merck & Company (MRK), Bristol-Myers Squibb (BMY), and Pfizer Inc. (PFE): Berkshire added these four picks from the big-pharma sector this quarter. ABBV, MRK, and BMY received an allocation of ~$1.8B each while the PFE stake is much smaller at ~$135M. ABBV traded between ~$86 and ~$101 during the quarter and it currently goes for $98.36. MRK traded between ~$77 and ~$87 during the quarter and it currently goes for $80.18. BMY traded between ~$57.50 and ~$63.75 during the quarter and it currently goes for ~$64.50. PFE traded between ~$33.50 and ~$39.25 during the quarter and it currently goes for $37.33.Snowflake Inc. (SNOW) and T-Mobile US (TMUS): SNOW had an IPO in September. Shares started trading at ~$229 and currently goes for ~$242. Berkshire acquired the shares at the IPO price of ~$120 per share. TMUS is a very small 0.12% of the portfolio stake purchased at prices between ~$104 and ~$119 and it currently trades at ~$129.Stake Disposals:Costco Wholesale (COST): COST was a long-term position that was in the portfolio for almost two decades. This quarter saw the 0.65% of the portfolio stake disposed at prices between ~$303 and ~$359. The stock currently trades at ~$380. Berkshire had a ~10x return on the position over the holding period.Stake Increases:Bank of America (BAC): Berkshire established this large (top three) ~11% 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 $27.58. 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 and a marginal increase next quarter. Q2 2019 also saw a ~4% stake increase. There was a ~9% stake increase this quarter at prices between ~$23 and ~$27.Note: Berkshire’s overall cost-basis is ~$14 and ownership stake is ~12%.General Motors (GM):  GM is a ~1% 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. This quarter also saw a ~7% stake increase. The stock currently trades at $42.13. Overall, Berkshire’s cost-basis on GM is ~$32. Berkshire controls ~5.5% of the business.Kroger Company (KR): KR is a 0.37% of the portfolio position established in Q4 2019 at prices between $24 and $29. Last two quarters have seen a ~30% stake increase at prices between ~$30 and ~$36.60. The stock currently trades at $32.30.Liberty LiLAC Group (LILA) (LILAK): The minutely small 0.01% of the portfolio stake in LILAK saw a minor increase during the quarter.Stake Decreases: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 ~$120. This quarter saw a ~4% trimming.Note: Apple stock split 4-for-1 in August. The prices quoted above are adjusted. Berkshire has a ~5.8% ownership stake in the business.DaVita Inc. (DVA):  DVA is a 1.35% 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 ~$113 compared to Berkshire’s overall cost-basis of ~$45 per share. This quarter saw a ~5% (2M shares) selling at $88 per share.Note: Berkshire’s ownership stake in DaVita is ~32%.Wells Fargo & Co. (WFC):  WFC is now a 1.31% of the 13F portfolio position. It is a very long-term stake. Recent activity follows: 2019 saw a ~25% selling at prices between $43 and $55. Last two quarters have seen another ~60% reduction at prices between ~$23 and ~$33. Berkshire’s cost-basis is ~$24.50. The stock currently trades at $24.90.Liberty Global PLC (LBTYA) (LBTYK): The position was established in Q4 2013 at prices between $37.50 and $44.50 (adjusted for the 03/2014 stock-split) and increased in the following two quarters at prices between $38.50 and $46. The three quarters thru Q1 2016 had also seen a combined ~30% increase at prices between $30 and $50. Q2 2016 saw a ~17% further increase at prices between $27 and $39. The stock is now at $21.85 and the stake is at 0.23% of the 13F portfolio. This quarter saw a ~5% trimming at $22.31.Axalta Coating Systems (AXTA): AXTA is a small 0.23% of the portfolio stake established in Q2 2015 at prices between $28 and $36 and increased by ~16% the following quarter at prices between $24.50 and $33.50. The stock currently trades at $28.30. Berkshire owns ~10% of the business. This quarter saw a ~3% trimming at $22.63.Barrick Gold (GOLD): The very small 0.15% of the portfolio GOLD stake was purchased last quarter at prices between $18.50 and $28.25 and the stock currently trades at $25.86. There was a ~43% selling this quarter at prices between ~$26 and ~$30.50.JPMorgan Chase (JPM: A ~1% stake in JPM was established in Q3 2018 at prices between $104 and $119 and increased by ~40% next quarter at prices between $92 and $115. There was another ~20% stake increase in Q1 2019 at prices between $97 and $107. The stock currently trades at ~$117. Last quarter saw a ~60% selling at prices between $84 and $114. The remaining position was almost eliminated this quarter at prices between ~$91 and ~$104.PNC Financial (PNC): The 0.09% PNC stake was established in Q3 2018 at prices between $134 and $146 and increased by just over one-third next quarter at prices between $110 and $140. There was a ~80% selling over the last two quarters at prices between $85 and $131. The stock is now at ~$126.M&T Bank (MTB): The very small 0.12% of the portfolio MTB stake was reduced this quarter.Kept Steady:American Express (AXP) and Coca Cola (KO):  These two very large stakes were kept steady during the last ~6 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 4.26% 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 $32.15.Moody’s Inc. (MCO):  MCO is a 3.12% 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 ~$276. Berkshire controls ~13% of the business.US Bancorp (USB): The ~2% 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 $44.28 and Berkshire’s cost-basis is ~$38. They control ~10% of the business. There was marginal selling last quarter.Charter Communications (CHTR): CHTR is a 1.42% 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 stock currently trades at ~$641 compared to Berkshire’s cost-basis of ~$178. 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. Since then, the activity has been minor.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 ~$195 and the position is at 1.15% of the portfolio (~10% of the business). Q1 2020 saw minor trimming.Bank of New York Mellon Corp (BK):  BK is a 1.09% 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 $39.71. There was a ~10% trimming last quarter. Berkshire’s cost-basis on BK is ~$46 per share and ownership stake is ~9%.Amazon.com (AMZN): AMZN is a 0.73% 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 ~$3131. There was marginal trimming in Q1 2020.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. Last quarter saw another ~27% stake increase primarily thru the $25.47 per share rights offering the company announced in May. The stock currently trades at $42.80.Note: LSXMA/LSXMK is trading at a significant NAV-discount to the parent’s (SIRI) valuation.Sirius XM Holdings (SIRI): The 0.12% SIRI stake was purchased in Q4 2016 at prices between $4.08 and $4.61. Q2 2017 saw selling: ~20% reduction at prices between $4.70 and $5.50. Last quarter saw a ~60% selling at prices between $4.50 and $6.50. The stock is currently at $6.37.StoneCo Ltd. (STNE): STNE is a 0.33% position purchased in Q4 2018 at ~$21 per share compared to the current price of $65.52.Note: Berkshire has a ~11% 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.Store Capital (STOR): The 0.29% STOR stake was established in Q2 2017 in a private placement transaction at $20.25 per share. Last quarter saw a ~30% stake increase at prices between $14.50 and $26.50. The stock is now at $32.60.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 ~$408. Berkshire controls ~9% of the business.Teva Pharmaceuticals (TEVA): TEVA is a very small 0.17% 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 stock currently trades at $9.63.Suncor Energy (SU): The 0.10% SU stake was purchased in Q4 2018 at prices between $26 and $40. Q4 2019 saw a ~40% stake increase at prices between $29 and $33. There was another ~30% stake increase last quarter at prices between $14.25 and $21.30. The stock is now at ~$15.Note: Suncor Energy has had a roundtrip in the portfolio. It was a 0.48% position purchased in Q2 2013 at prices between $27 and $32. That stake was disposed during Q2 & Q3 2016 at prices between $25.50 and $29.Synchrony Financial (SYF): SYF is a 0.23% of the portfolio position purchased in Q2 2017 at prices between $26.50 and $34.50 and increased by ~20% the following quarter at prices between $28.50 and $31.25. The stock is now at $31.11. Q1 2020 saw a ~3% trimming.Note: Synchrony is the private label credit-card business split-off from GE that started trading in August 2014 at ~$23 per share.Biogen Inc. (BIIB), Globe Life (GL), Johnson & Johnson (JNJ), MasterCard Inc. (MA), Mondelez International (MDLZ), Procter & Gamble (PG), SPDR S&P 500 Index (SPY), United Parcel Service (UPS), Vanguard S&P 500 Index (VOO), and Visa Inc. (V): These very 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 ~$16. 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 $46.79.The spreadsheet below highlights changes to Berkshire Hathaway’s 13F stock holdings in Q3 2020:Regulatory filings thru 8/15/2020: Form 4 – 8/4 – BAC - ~13.5M shares purchased @ ~24.85 – 1.032B shares total. Form 4 – 7/30 - ~21M shares purchased @ ~24.75 – 1.02B shares total. Form 4 – 7/27 - ~16.5M shares purchased @ ~24.25 – 998M shares total. Form 4 – 7/10 – LBTYK – 481K shares disposed – 19.3M shares remain. 7/10 – Form 3 – 19.79M shares. Form 4 – 6/19 – LSXMK – 340K shares acquired @ 25.47 – 43.21M shares total. Form 4 – 6/9 – 7.18M shares acquired @ 25.47, 42.87M shares total. Form 4 – 6/3 – 450K shares purchased @ 37.35 – 35.69M shares total. Form 4 – 5/29 - ~2.4M shares acquired @ ~36.25 – 35.24M shares total. Form 4 – 5/26 – ~2M shares acquired @ ~32.25 – 32.87M shares total."