13F| A selling binge and a rare liquidation of Buffett - value investing changed?
Berkshire released it latest 13F, which reflects moves made in the fourth quarter and holdings as of the end of 2022.
As of December 31 last year, Berkshire's US equity position was US$299.008 billion, up slightly from US$296.097 billion in the previous quarter, rebounding for the first time after two consecutive quarters of decline.
Buffett kept the majority of his top 10 holdings unchanged last quarter. However, $HP Inc(HPQ)$ replaced $Taiwan Semiconductor Manufacturing(TSM)$ to rank among the top 10 holdings.
data from cnbc
To look specifically,
Buffett added a little bit $Apple(AAPL)$ , $Paramount Global(PARA)$ , and $Louisiana-Pacific(LPX)$ .
Buffett sold financial stocks -$McKesson(MCK)$ , gaming developer $Activision Blizzard(ATVI)$ and almost liquidated semiconductor company -$Taiwan Semiconductor Manufacturing(TSM)$ he had just purchased last quarter.
Stocks that Berkshire added in Q4
Apple remains to be the top 1 holding of Berkshire. Buffett added to his Apple stake just ever so slightly - 333,900 shares- last quarter. Apple was worth $116 billion at the end of 2022.
data from whalewisdom
Stocks that Berkshire cut in Q4
data from whalewisdom
1) Berkshire decreases stake in $Taiwan Semiconductor Manufacturing(TSM)$ by 86%
Berkshire Hathaway dumped a significant portion of Taiwan Semiconductor, a chip stock he had just bought in the last quarter and made it Berkshire’s 10th biggest holding.
At the end of 2022, Berkshire only owned just 8.3 million shares of TSMC, worth $618 million, about 86% less than what it held in the previous quarter.
2) Chevron and Activision Blizzard were both reduced, but the overall size still ranked in the top ten
Buffett continued to cut his position in Activision Blizzard last quarter, but it is still the ninth holding. He cut it for three straight quarters as regulatory headwinds on the Microsoft takeover rose.
According to the 13F, Buffett’s holding in Chevron dropped 1.4% last quarter, worth $29.3 billion at the end of the fourth quarter. Chevron was still Berkshire’s third largest holding at the end of 2022.
Comparison of the addition and reduction of Berkshire holdings
How do you think Buffett sold 86% of TSMC?
Will you follow him?
Do you think it's a sign that his value investing style changed?
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The obvious explanation centers on declining demand for personal computers and server chips relative to their pandemic-era peak valuations. Further, the specter of rising interest rates and stubbornly high inflation doesn’t bode well for the technology space. @Tiger_chat
As to WB and $Taiwan Semiconductor Manufacturing(TSM)$, first off we don't know for sure if it's Buffett or one of his deputies that initiate the transaction.
Secondly, $Berkshire Hathaway(BRK.B)$ first bought TSM about Nov last year when it was at around $60 and then went up to 100ish, that's more than 50% in less than 3 months. Maybe whoever made that call thinks 100 is just too much of a price for TSM. Investing is not always about a long timeframe, but sell when you think it's already overpriced.
The obvious explanation centers on declining demand for personal computers and server chips relative to their pandemic-era peak valuations. Further, the specter of rising interest rates and stubbornly high inflation doesn’t bode well for the technology space. @Tiger_chat
I won't follow him because I don't own TSM.
I would give him a break. Doing nothing for so long is boring. Let him press the SELL button more often.
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