"Tracking Warren Buffett’s Berkshire Hathaway Portfolio – Q3 2014 Update"
"Warren Buffett's US long stock portfolio increased marginally from $107.58B to $107.79B this quarter.Berkshire Hathaway's largest three holdings are at over half the entire portfolio.Berkshire Hathaway significantly increased Charter Communications, DirecTV, and General Motors this quarter.This article is part of a series that provides an ongoing analysis of the changes made to Berkshire Hathaway’s US stock portfolio on a quarterly basis. It is based on Warren Buffett’s regulatory  filed on 11/14/2014. Please visit our  article series for an idea on how his holdings have progressed over the years and  highlighting the moves during Q2 2014.During Q2 2014, Berkshire Hathaway’s (BRK.A) (BRK.B) US long stock portfolio increased marginally from $107.58B to $107.79B.  The top-five positions account for over two-thirds of the portfolio. The largest position remained the same as last quarter - Wells Fargo & Company at a whopping 22.30% of the US long portfolio - Buffett broke a pattern of consistent buying in Wells Fargo in Q3 2013 and since then the position has been kept relatively steady. The US long portfolio has 45 individual stock positions of which 25 are significantly large (greater than 0.5% of the overall 13F portfolio each). The focus of this article is on the larger positions.() are a treasure trove of information and are a very good source for anyone starting out on individual investing.New stakes:None.Stake Disposals:None.Stake Increases:Charter Communications (CHTR): CHTR is a small 0.70% of the US long portfolio position. It was established last quarter at prices between $118 and $158 and more than doubled this quarter at prices between $151 and $164. The stock currently trades at $155.DIRECTV (DTV):  DTV is a 2.41% position first purchased in Q3 2011. The bulk of the current stake was purchased in Q4 2011 at prices between $40.60 and $47.87. Last quarter, the position was reduced by around one-third at prices between $74 and $88.25. This quarter, the pattern reversed: a ~28% stake increase at prices between $83.55 and $87.72. The stock currently trades at around $86.91. AT&T (T) is in the process of acquiring DTV in a $95 per share cash-and-stock deal ($28.50 per share cash). Berkshire’s cost-basis is at around $45.Note (not in SA report): AT&T DTV acquisition terms: DIRECTV shareholders will receive $95.00 per share under the terms of the merger, comprised of $28.50 per share in cash and $66.50 per share in AT&T stock. The stock portion will be subject to a collar such that DIRECTV shareholders will receive 1.905 AT&T shares if AT&T stock price is below $34.90 at closing and 1.724 AT&T shares if AT&T stock price is above $38.58 at closing. If AT&T stock price at closing is between $34.90 and $38.58, DIRECTV shareholders will receive a number of shares between 1.724 and 1.905, equal to $66.50 in value. - See more at:http://about.att.com/story/att_to_acquire_directv.html#sthash.xOGBWTHj.dpufGeneral Motors (GM):  GM is a 1.19% of the US long portfolio position that was first purchased in Q1 2012 at prices between $21 and $30. The stake was increased by 60% in Q2 2013 at prices between $27.53 and $35.03 and had since been kept steady.  Q1 2014 saw a 25% stake reduction at prices between $34 and $41 and last quarter there was an about-turn: a 9.86% increase at prices between $31.93 and $37.09. This quarter saw another ~21% increase at prices between $31.94 and $37.97. The stock currently trades at $32.31.International Business Machines (IBM): IBM is Buffett’s third largest stake at 12.41% of the portfolio. The position was increased marginally in Q1 2013 and had since been kept steady. The original stake was purchased in Q3 2011 at prices between $157.54 and $185.21. Since then, the position size has gone up by around 19% through periodic purchases. Last three quarters have seen minor buying and the stock currently trades at $164. Berkshire’s cost-basis on IBM is at around $170. Buffett is very bullish on IBM and controls ~7% of the business. For investors attempting to follow Buffett, IBM is a very good option to consider for further research.Suncor Energy (SU): SU is a small 0.62% of the US long portfolio position first purchased in Q2 2013 at prices between $27.40 and $32. It was increased by ~27% last quarter at prices between $34.96 and $43.17. This quarter, the position was increased by another ~12% at prices between $36.12 and $43.10. The stock currently trades at $34.74.Wal-Mart Stores (WMT):  WMT stake was first purchased in 2005. It has since been built up to a 4.28% position. It is a top-five position as of Q1 2014 as it edged out the Procter & Gamble stake. The position was increased by 4% in Q1 2013 at prices between $68 and $75. It was again increased by 17% in Q1 2014 at prices between $72.66 and $78.91 and the last two quarters have also seen minor additional buying. The stock currently trades at $83.57. Berkshire’s overall cost-basis on the position is at around $54.Liberty Global PLC (LBTYA) (LBTYK): Liberty Global was a minute 0.25% position established in Q4 2013 at prices between $37.50 and $44.50 (adjusted for the 03/2014 stock-split) and increased significantly to a 0.57% position in Q1 2014 at prices between $40.37 and $46. Last quarter, the position was further increased by ~17% at prices between $38.49 and $45.61. This quarter also saw marginal buying. The stock currently trades at $46.83.Viacom (VIAB):  VIAB is a minutely small 0.55% stake that has been kept steady over the last seven quarters. The stake is too minor to indicate any clear bias.Stake Decreases:Bank of New York Mellon Corp (BK):  BK is a 0.84% of the US stock portfolio stake. The bulk of the original position was purchased in Q2 2012 at prices between $19.51 and $24.67. The stake was increased by 30% in Q2 2013 as well at prices between $26.70 and $30.55 and since then has been kept relatively steady. This quarter saw a ~5% decrease at prices between $37.50 and $40.26. The stock currently trades at $39.73.National Oilwell Varco Inc. (NOV):  NOV is a minutely small 0.45% of the US long portfolio stake.  The position was established in Q2 2012 at prices between $60 and $80.67. It was increased by ~19% in Q2 2013 at prices between $64.14 and $71.57 and had since been kept steady. Last quarter saw an 18% stake reduction at prices between $74 and $84 and this quarter saw a further ~13% stake reduction at prices between $76.10 and $86.43. The stock currently trades at $71.82.NOTE: The implied performance of this position by the prices quoted above is negatively skewed because of the effect of National Oilwell Varco’s Now Inc. spinoff. The terms called for NOV shareholders to receive one share of DNOW for every four shares of NOV held.Kept Steady:Wells Fargo & Co. (WFC):  WFC is Buffett’s largest stake at 22.30% of the US long portfolio well ahead of Coca Cola (KO) which is at 15.83%. The last significant purchases happened in Q2 2013 when over 18M shares were purchased at prices between $34.66 and $38.20 and Q1 2013 when ~5M shares were purchased at prices between $36.27 and $41.56. The stock currently trades at $53.44. Berkshire’s overall cost-basis is at around $24.55.American Express (AXP), Coca Cola (KO), and Procter & Gamble (PG):  These are very large stakes that were kept steady during the last seven quarters. Buffett has said these positions will be held “permanently”. Berkshire’s cost-basis on AXP, KO, and PG are at around $8.49, $3.25, and $6.40 respectively.Chicago Bridge & Iron (CBI): CBI is a 0.57% of the US long portfolio position that was increased by 47% in Q2 2013 at prices between $50.92 and $63.75. Last quarter saw a 12% stake increase at prices between $65.51 and $87.65. The original position was purchased in Q1 2013 at prices between $46 and $62. The stock currently trades at $53.70.  Berkshire controls 9.89% of the business.DaVita Inc. (DVA):  DVA is a 2.55% of the US long portfolio position that was aggressively built-up over several quarters: the stake was doubled in Q1 2012, increased by over 50% in Q2 2012, and by an additional 24% in Q4 2012. The bulk of the buying happened at prices between $30 and $49. Q4 2013 saw a ~16% stake increase at prices between $55 and $64 and last quarter saw a ~3% increase at prices between $62.74 and $69.81. The stock currently trades at around $75.51. In May 2013, Berkshire’s Ted Weschler signed an accord with DVA, limiting open-market purchases to 25% of the company- the position is currently at 17.6% of the business.Exxon Mobil (XOM): XOM is a 3.59% of the US long portfolio stake. The position was first purchased in Q2 2013 but Buffett avoided disclosing it until Q4 2013 by making use of the “”. The original stake was a 3.85% of the US long portfolio position established at prices between $86 and $93. In Q3 2013, the position was increased by ~28% at prices between $86.42 and $95.20. The stock currently trades at $95.11. The relatively large stake build-up indicates a clear bullish bias. For investors attempting to follow Buffett, XOM is a good option to consider for further research.Goldman Sachs (GS): GS is 2.15% of the US long portfolio stake established in Q4 2013. Berkshire Hathaway received $5B worth of warrants to buy GS stock during the financial crisis (October 2008) at a strike price of $115 (43.5M shares) that was to expire October 1, 2013. Buffett exercised the right before expiry to start this long position. GS currently trades at $190. Buffett probably chose a cashless conversion whereby the majority of the position was liquidated to realize cash that funded the 12.63M share purchase at the strike price of $115.Liberty Media (LMCA) (LMCK): LMCA was a petite 0.35% stake first purchased in Q4 2011. It was increased by ~75% in Q1 2012 and roughly doubled the next quarter. Last quarter saw a ~24% stake reduction. The position now represents around 0.52% of the portfolio.Note: The share count for Liberty Media in the spreadsheet has increased two-times since last quarter because the company distributed two shares of Series C common stock (LMCK) for each share of Series A common stock held during the quarter. Also, Liberty Media is spinning off its cable assets as Liberty Broadband Corporation in a spin-off and rights  this month.Moody’s Inc. (MCO):  MCO is a 2.16% of the US long portfolio stake that was decreased by 14% in Q2 2013 at prices between $52.23 and $68.62. It was kept steady in Q3 2013 but was marginally decreased in Q4 2013. The stock currently trades at $101. Buffett’s cost basis is just over $10 and so he is sitting on large long-term capital gains on this position. The stock returned around 48% in 2013 and has returned 28% so far this year. Berkshire controls 11.5% of the business.US Bancorp (USB): USB, a 3.11% stake has been in the portfolio since 2006. The position was tripled during the 2007-2009 timeframe and since then was reduced by around 15% overall as of EOY 2012. Q1 2013 saw a marginal increase in the position and the following quarter saw more activity as ~17M shares were purchased at prices between $32.27 and $36.15. The last four quarters saw marginal stake increases and this quarter the position was kept steady. Berkshire’s cost-basis on USB is around $31 and the stock is trading well above that price at $43.80. Buffett controls 4.4% of the business.USG Corporation (USG):  USG is a very long-term holding and there was a significant 21.39M share stake increase in Q4 2013 due to conversion of notes at $11.40 per share - Berkshire acquired the convertible notes during the financial crisis (2/2009) and USG opted to redeem them on 12/16/2013. Last quarter saw a ~11.5% stake increase at prices between $29.57 and $33.16. The stock currently trades at $27.78. Buffett controls around 27% of the business.Verisign Inc. (VRSN): VRSN was first purchased in Q4 2012 at prices between $34.15 and $49.48. The position was more than doubled in Q1 2013 to a 0.45% position at prices between $38 and $48 and was again increased by one-third the following quarter at prices between $44.39 and $49.27. Last two quarters also saw a combined ~17% increase at prices between $47 and $63. The stock currently trades at $60.65. The current position is at ~10% of the business although as a percentage of the portfolio the stake is still very small at 0.66%.Verizon Communications (VZ): VZ is a small 0.70% of the US long portfolio position established in Q1 2014 at prices between $46 and $49.30. It was increased by ~36% last quarter at prices between $45.94 and $50.05. The stock currently trades at $51.40.M&T Bank (MTB):  This very small 0.62% position has been kept steady over the last seven quarters. The stake is too minor to indicate any clear bias.The portfolio also has very small (less than 0.5% of the US long portfolio) stakes in the following businesses: ConocoPhillips (COP), Costco Wholesale (COST), Express Scripts (ESRX), General Electric (GE), Graham Holdings (GHC), Johnson & Johnson (JNJ), Kraft Foods Group Inc. (KRFT), Lee Enterprises (LEE), MasterCard Inc. (MA), Media General (MEG), Mondelez International (MDLZ), Now Inc. (DNOW), Phillips 66 (PSX), Precision Castparts (PCP), Sanofi Aventis (SNY), Torchmark (TMK), United Parcel Service (UPS), Verisk Analytics (VRSK), Visa Inc. (V), and Wabco Holding (WBC). Although the relative size of the position is small, Berkshire controls 6.6% of Wabco. The minute position in DNOW was established last quarter as a result of National Oilwell Varco’s spin-off of its distribution business. Also, per the , Berkshire has a $1.75B position in Sanofi - so in addition to the 13F securities listed in the spreadsheet, Berkshire also owns Sanofi securities listed in Euronext Paris. Other large non-US individual stock positions reported in the AR were Munich RE and Tesco plc (TSCDY). In October, a regulatory filing indicated that Berkshire’s TSCDY ownership has dropped below 3%.The spreadsheet below highlights changes to Berkshire Hathaway’s US stock holdings in Q3 2014:NOTE 1: Stake reduction in Tesco PLC, Source: (will have to check London regulatory website (?) for the actual filing - one related article quoted the source as  which has Tesco’s announcement on 10/16/2014) : LONDON (MarketWatch) -- Warren Buffett's Berkshire Hathaway  has reduced its holdings of Tesco PLC  shares, according to a filing released on Thursday. Berkshire Hathwaway now owns less than 3% of the U.K. supermarket chain, down from around 4%, which was the fourth largest stake in Tesco. The sale comes after Tesco revealed in September a 250 million-pound ($400 million) accounting issue. Buffett has since said he made a "huge mistake" by investing in the company. Tesco shares were down 0.9% in London on Thursday."