For you math-phobes, we're talking about an aggregate gain of more than 2,700,000%! Berkshire Hathaway eliminated the large stake in the big-four airlines and decreased several businesses in the financial sector during the quarter. Berkshire's SEC filing notes that COVID-19 has wreaked havoc on the aerospace and airline industries (without using those exact words), and it's unclear how long these adverse effects will last. Berkshire Hathaway had pared down close to 90% of its stake in investment bank Goldman Sachs over the past two quarters, signaling that Buffett has lost faith in the company. Buffett has always been a stickler for value, but appeared to break his cardinal rule when purchasing Precision Castparts. Which of Buffett's Banks Has the Highest Dividend Yield? U.S. Securities and Exchange Commission. For decades, few if any investors have been able to hold a candle to Warren Buffett's performance. Cash stockpiles rose even as buybacks did. Investopedia. Though investors would much prefer Buffett put his company's cash hoard to work via an acquisition of equity investments, rebuying stock isn't a bad idea. Data source: Berkshire Hathaway SEC filings. With Buffett a big-time net-seller of equities, Berkshire Hathaway's cash on hand grew from $137.2 billion, at the end of March, to an all-timer record $146.6 billion, as of June 30, 2020. Berkshire Hathaway Assurance: Bond Insurance 100% 2007/12/01 Berkshire Hathaway … It's an interesting move considering how well Goldman's equity and commodities segments have performed of late. Increased positions include the Store Capital REIT, grocery chain Kroger, and Canadian oil and gas company Suncor Energy. We’re motley! BERKSHIRE HATHAWAY INC.. 2020 Second Quarter Report (PDF file) "The magical metal was no match for the American mettle," he wrote in Feb. 2019, comparing the long-term performance of gold and the S&P 500 Index. Link to 13F filings: SEC filings: As of 12/31/2020. Even though Warren Buffett spent $9.7 billion in early July to buy Dominion Energy's natural gas transmission and storage assets, and he's dropped more than $2 billion to purchase additional shares of Bank of America in recent weeks, these acquisitions didn't occur in the second quarter. "5 Takeaways From The 2020 Berkshire Hathaway Annual Meeting," Accessed Aug. 15, 2020. The key … The latter purchase surprised many observers, since Berkshire Chair and CEO Warren Buffett has derided investing in gold. You see, back in 2018, the SEC required companies that were holding equity securities to include the unrealized change in market value of these securities in their quarterly earnings statements. These include white papers, government data, original reporting, and interviews with industry experts. Comparing 13F filings for Q2 2020 and Q1 2020 reveals that Berkshire cut its holdings of several banking and financial services stocks. Berkshire's 13F holdings are often held for years and even decades at a time. As such, Buffett and his right-hand man Charlie Munger strongly suggest ignoring Berkshire's headline profit/loss figure and dig down into the meat and potatoes of how its owned businesses and sold equities actually performed. Thus, with Berkshire Hathaway lifting the hood on its second-quarter operating results this past weekend, there were a lot of curious shareholders and prospective investors wondering how Buffett and his company navigated through the most challenging quarter in decades. Berkshire Hathaway began buying Bank of America significantly in July after maintaining its position in the company and reducing its stake in many bank holdings in Q2. Berkshire Hathaway's insurance business improved its combined ratio in 2Q 2020 vs. competitors, however auto insurance refunds could lower this advantage in future quarters. He has been an expert in investing, and a market watcher for 40-plus years. Payne Capital Management President Ryan Payne joins Yahoo Finance’s Zack Guzman to discuss Berkshire Hathaway’s new position in Barrick Gold, along with selling shares of Goldman Sachs. Berkshire Hathaway CEO Warren Buffett. In Q2 2020 , Berkshire Hathaway reported a massive 86.5% increase in earnings year over year. This is to say that the vast majority of Berkshire Hathaway's $26.3 billion in net earnings is attributable to the company's investment portfolio gaining value during the second quarter. Berkshire Hathaway stock had a disappointing 2020, but the outlook for 2021 seems promising. This comes after $1.7 billion in purchases in the sequential first quarter, $5 billion in aggregate purchases in 2019, and close to $1 billion in repurchasing activity in the second-half of 2018. Berkshire's equity book kept pace with the S&P500 this quarter, although Berkshire itself dropped 2% while the broader market advanced nearly 20%. Returns as of 05/02/2021. However, one stock I'm fairly confident has been given the boot is Goldman Sachs (NYSE:GS). But Buffett isn't a fan of paring own his company's stakes slowly, so look for Goldman Sachs to have been sold in its entirety from Berkshire's portfolio during the second quarter. "Berkshire Sells Stakes in Phillips 66, Travelers and Goldman," Accessed Aug. 15, 2020. It would appear that Berkshire Hathaway's selling didn't stop with the jettisoning of the company's four airline stocks. Earnings per share (EPS) for its class A stock were $18,994, up by 87.7% from $10,119 in the same period during 2019. After all, repurchasing Berkshire Hathaway's stock will reduce the number of shares outstanding, which can have a positive impact on earnings per share. Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer. Learn how to get started investing with our guide. https://www.kiplinger.com/.../stocks-warren-buffett-buying-selling-q2-2020 Even after these layoffs, earnings are expected to be negatively impacted throughout 2020 as operational inefficiencies are dealt with. The Class A share is currently selling at $327000 and Class B share at $218. Value investors like Warren Buffett select undervalued stocks trading at less than their intrinsic book value that have long-term potential. Investing is allocating resources, usually money, with the expectation of earning an income or profit. Even though Warren Buffett spent $9.7 billion in early … In Q2/2020, Berkshire, a holdings company led by Warren Buffett, filed its 13F Report with 44 holdings in its portfolio, valued at US$202 billion. Berkshire Hathaway (BRK.A) reported misses on both net and operating earnings as COVID-19 hurt several businesses. in Economics, Sean specializes in the healthcare sector and investment planning. Is Berkshire Hathaway a safe Stock to buy in 2020. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Berkshire sold its holdings in airline stocks and Goldman Sachs (NYSE: GS) prior to earnings. Even as a firm believer in the buy-and-hold ethos, Buffett's unwillingness to deploy his cash hoard is a potential red flag. Berkshire Hathaway BRK.A BRK.B is expected to report its Q2 earnings results before the market opens on Friday, August 2. The Zacks Consensus Estimate … For those who may recall, Buffett announced during his company's annual shareholder meeting in May that he and his team had sold more than $6 billion in equities in April. Berkshire Hathaway's 13F stock portfolio value increased from ~$176B to ~$202B this quarter. Berkshire Hathaway. Cumulative Growth of a $10,000 Investment in Stock Advisor, 5 Jaw-Dropping Figures in Berkshire Hathaway's Q2 Report @themotleyfool #stocks $BRK.A $BRK.B $GS, an aggregate gain of more than 2,700,000%, one stock I'm fairly confident has been given the boot, strongly suggest ignoring Berkshire's headline profit/loss figure. During Berkshire's annual meeting in May, Buffett announced that they had exited their holdings of four major U.S. airlines, confirmed by the Q2 Form 13F. , For the second consecutive quarter, Berkshire trimmed holdings of satellite radio service Sirius XM Holdings Inc. (SIRI). Then again, there has been one asset that Warren Buffett can't stop buying over the past two years: His own stock. U.S. Securities and Exchange Commission. Berkshire Hathaway ... That estimated Q3 decline also is nearly triple the YOY decline in Q2 FY 2020, suggesting that Berkshire's business operations have only begun to feel the pandemic's impact. After financing the acquisition of Anadarko Petroleum by Occidental Petroleum Corp. (OXY), Berkshire eventually received 18.9 million common shares of Occidental, worth $219 million as of the end of Q1 2020. This position was sold in Q2 2020. Berkshire Hathaway cut stakes in several banks and financial firms. Berkshire Hathaway Inc. "Annual Letter to Shareholders, Feb. 23, 2019," Page 14. The answer lies with the company's investment portfolio "gains.". Buffett's strategy of investing in or acquiring businesses with clear-cut competitive advantages has worked wonders. Reduced Banking and Financial Services Exposure, Value Investing: How to Invest Like Warren Buffett, Berkshire Hathaway Inc. Form 13F, Aug. 14, 2020, Annual Letter to Shareholders, Feb. 23, 2019, Berkshire Hathaway Inc. Form 13F, May 15, 2020, Berkshire Sells Stakes in Phillips 66, Travelers and Goldman, Why Buffett Is Betting $10 Billion on Occidental in the Anadarko Bidding War, 5 Takeaways From The 2020 Berkshire Hathaway Annual Meeting. Notably, there were a few surprises in the filing. Buffett is regarded as the ultimate value investor following the Benjamin Graham approach to finding value. Berkshire Hathaway Inc had filed a previous 13F-HR on 2020-11-16 disclosing 50,000,000 shares of Sirius XM Holdings Inc at a value of $268,000,000 USD. This position is now 50 million shares, down by 62% from 132 million at the end of Q1 2020, and worth $264 million at the end of Q2 2020. , Berkshire increased its holdings of REIT Store Capital Corp. (STOR), grocery chain Kroger Co. (KR), and Canadian oil and gas company Suncor Energy Inc. 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