Berkshire Hathaway, led by Warren Buffett, has made several significant changes to its 13F equity investment portfolio for the second quarter. The company has been quietly buying shares in D.R. Horton, Lennar, and Nucor, among others.
According to Morningstar metrics, Berkshire Hathaway’s fair value estimate is $730,500, with a Morningstar rating of three stars out of five. However, the economic moat rating is narrow, indicating that the company faces intense competition in its industry.
In terms of recent sales and purchases, Berkshire Hathaway reported net sales of around $2.6 billion, which includes $7.0 billion of estimated sales and $4.5 billion of estimated purchases. The company has been selling Apple shares since September 2023, reducing its stake by 69% and booking an estimated realized gain of $99.6 billion.
Berkshire Hathaway also made new money investments in UnitedHealth Group, acquiring 5.0 million shares for an estimated $2.1 billion. However, the company’s investment in UnitedHealth has been impacted by the insurer’s recent struggles with rising medical costs and disappointing earnings.
In a surprise move, Berkshire Hathaway revealed three mystery stocks that it had been investing in since the start of the year: D.R. Horton, Lennar, and Nucor. The company initially acquired shares in these companies in the first quarter but has made changes to its holdings over time.
Berkshire Hathaway’s purchase of D.R. Horton shares was the largest among the three mystery stocks, with the company acquiring 1.5 million shares for an estimated $203 million in the first quarter. The company sold off 27,000 shares for an estimated $3.3 million, reducing its stake by 69%.
The company’s investment in Lennar has been more substantial, with Berkshire Hathaway initially acquiring 0.2 million shares for an estimated $15 million in 2023 and later increasing its holdings to 5.3 million shares for an estimated $575 million.
Nucor was a new money purchase for Berkshire Hathaway, with the company acquiring 5.8 million shares for an estimated $740 million in the first quarter of 2024. The company has been navigating a dynamic steel market and has made strategic investments and operational improvements to improve its competitiveness.
Overall, Berkshire Hathaway’s latest investment moves suggest that the company is continuing to diversify its portfolio and make strategic investments in various industries.
Source: https://www.morningstar.com/stocks/berkshire-hathaway-buys-unitedhealth-reveals-mystery-stocks