Berkshire Hathaway (BRK.A)’s quarterly disclosure of its equity holdings is a closely watched regulatory filing for investors as it offers a glimpse of where Warren Buffett sees things go up or down. In the second quarter ending in June, Buffett’s investment conglomerate made new investments in three home construction companies and slashed holdings in General Motors and a few insurance companies, according to an SEC filing yesterday (August 14). Between April and June, Berkshire Hathaway purchased 5.97 million shares of home builder DR Horton worth $726.4 million, 153,000 shares of Lennar worth $17.2 million, and 11,112 shares of NVR worth $70.6 million, the filing shows.
Berkshire owns several other home construction and remodeling companies, including Clayton Homes, paint maker Benjamin Moore and insulation material manufacturer Johns Manville. Surging mortgage rates in the past year have discouraged many prospective buyers from entering the housing market and existing homeowners from selling. But new home construction is on the rise and builders are selling houses at a faster pace.
Berkshire Hathaway added 2.55 million shares of Capital One, worth $410 million, in the second quarter. It also sold stock. Most notably, it unloaded 18 million shares of General Motors, or 45 percent of Berkshire’s holding in the automaker. The firm reduced stakes in chemical maker Celanese and insurer Globe Life, and closed out its positions in insurer Marsh & McLennan, health care provider McKesson, and oil and gas conglomerate Vitesse Energy. As of June 30, Berkshire’s equity portfolio stood at $348 billion, up from $325 billion at the end of the first quarter.
What Berkshire Hathaway bought in Q2:
- A new position of 5.97 million shares of DR Horton
- A new position of 153,000 shares of Lennar
- A new position of 11,112 shares of NVR
- 2.55 million shares of Capital One
What Berkshire Hathaway sold in Q2:
- 18 million shares of GM, or 45 percent of its holding
- 3.5 million shares of Celanese, or 39 percent of its holding
- 3.8 million shares of Globe Life, or 60 percent of its holding
- Entire 405,000 shares of Marsh & McLennan
- Entire 2.3 million shares of McKesson
- Entire 51,000 shares of Vitesse Energy
