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Berkshire Hathaway Sells General Motors Holdings in Q3


Berkshire Hathaway, led by legendary investor Warren Buffett, has recently sold off its remaining holdings of General Motors (GM) in the third quarter. This move comes as GM’s shares have experienced a decline. Additionally, the conglomerate has requested confidentiality from the Securities and Exchange Commission (SEC) regarding one or more of its equity holdings, which have been excluded from its 13-F filing.

Potential Financial Stocks

Speculation surrounds the mystery stock or stocks that Berkshire Hathaway has chosen to keep confidential. It is highly likely that these holdings are in the financial sector, as the company disclosed in its recent 10-Q that its investments in financial stocks increased by $1.2 billion during the quarter. Notably, there were no disclosed additions to financial stocks in the 13-F filing released on Tuesday.

Buffett’s Confidentiality Requests

Warren Buffett has a history of requesting confidentiality when Berkshire Hathaway acquires stocks and wishes to avoid tipping off the markets. In late 2020, Berkshire did the same when accumulating stakes in Chevron (CVX) and Verizon Communications (VZ). However, it is worth mentioning that these confidential holdings represent only a small portion of Berkshire’s equity portfolio—most likely around $1 billion—out of a total portfolio valued at approximately $350 billion. Buffett prefers not to disclose more information than necessary about Berkshire’s stock market activities. It is uncommon for prominent investors to request confidentiality, and there is no guarantee that the SEC will grant such requests.

General Motors Stock Disposal

According to the 13-F filing, Berkshire Hathaway no longer possessed any GM stock at the end of the third quarter. This came at a time when GM shares had witnessed a 16% decline since the beginning of the year. The Detroit-based automaker also faced recent worker strikes, which have now come to an end.

Additional Portfolio Adjustments

Apart from selling General Motors holdings, Berkshire Hathaway also divested from several smaller positions. This includes selling its stakes in Procter & Gamble (PG), Mondelez International (MDLZ), and United Parcel Service (UPS). Furthermore, the conglomerate reduced its holdings in HP (HPQ) and oil major Chevron.

New Positions in Liberty Live Tracking Stock

In contrast to the holdings that were sold off, Berkshire Hathaway revealed new positions in Liberty Live tracking stock. The company holds both class A voting shares (LLYVA) and nonvoting shares (LLYVK) totaling 16 million shares. These holdings were a result of a spinoff from Liberty SiriusXM tracking stock in August. Berkshire Hathaway currently holds about 63 million shares of Liberty SiriusXM, with each shareholder receiving 0.25 shares of the Liberty Live tracker for every share of Liberty SiriusXM.

Berkshire’s New Holdings and Portfolio Movements

Berkshire Hathaway, led by renowned investor Warren Buffett, has made some significant changes to its investment portfolio. The latest Securities and Exchange Commission (SEC) filings reveal key movements in the company’s holdings.

Liberty SiriusXM Holding Initiated by Weschler

One of Berkshire’s investment managers, Ted Weschler, is believed to have initiated the purchase of Liberty SiriusXM. This move adds up to a $44 million stake in the company. As a result, Sirius XM’s stock experienced a 14% surge on Wednesday. It is highly likely that Weschler played a pivotal role in this investment decision.

Atlanta Braves Holdings: A Spinoff from Liberty Formula One

Berkshire has also acquired a new holding in Atlanta Braves Holdings. Approximately 223,000 shares of BATRK are now part of the Berkshire portfolio. This addition is believed to be a spinoff from the Liberty Formula One tracker previously held by Berkshire. The orchestration for these moves can be credited to Liberty Media, a company controlled by media mogul John Malone. The various trackers fall under the Liberty Media umbrella.

Apple Stake Declines, Top Holdings Remain Unchanged

Despite Berkshire’s overall stake in Apple dropping from $176 billion to $157 billion during the quarter, no shares of the tech giant were bought or sold. Apple still accounts for an impressive 50% of Berkshire’s portfolio. Other top holdings, such as Bank of America Corp, American Express, and Coca-Cola, were not changed either.

Berkshire’s Recent Market Movements

It appears that Berkshire Hathaway has largely stayed away from the stock market in recent months. The company sold $7 billion in shares and made purchases amounting to $1.7 billion in the third quarter. Throughout the first nine months of this year, Berkshire has been a net seller of approximately $23 billion in shares, in contrast to being a net buyer of $49 billion in the first nine months of 2022.

At the end of September, Berkshire held a record $157 billion in cash and equivalents, a significant increase from the nearly $10 billion it had at the end of June. Additionally, the company executed a buyback of its own shares, amounting to $1.1 billion.

These recent developments demonstrate Berkshire Hathaway’s strategic moves in its investment portfolio. As market watchers continue to analyze Berkshire’s actions, it remains an important player in the world of investing.

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