To The Moon

In the recent 10-Q filing for its second quarter, Berkshire Hathaway helmed by the legendary investor Warren Buffett, bought about $6 billion worth of stocks.

It has acquired around 4 million shares of $Apple(AAPL)$, bringing its holding to 915 million shares worth about $158 billion now.

I’m glad to have added small quantities alongside Warren Buffett, as I trust that the robust fundamentals and balance sheet of Apple will help the company to weather through any recession, while its strong brand, loyal and relatively affluent customer base will mitigate any slowing demands on the back of rising costs and economy slowdown.

Berkshire was also a buyer of additional 5 million shares and 22 million shares of $Chevron(CVX)$and $Occidental(OXY)$respectively in the second quarter. I procrastinated for too long in acquiring shares of the oil majors, afraid that an impending recession was going to dampen demand, and missed the boat. Sigh!

Berkshire also bought about 10 million shares of $Activision Blizzard(ATVI)$ , bringing its stake to nearly 74 million shares. I believe that is an arbitrage play, as the counter trading at around $80 is still priced well below the $95 per share offered by Microsoft to take the video game maker private. Warren Buffett is likely betting that the deal will be approved and go through in due course. He has commented that while he has no ideas whether regulators will approve the deal eventually, he does know that Microsoft has the financial muscle to fund it.

Berkshire also disclosed that it had bought nearly 11 million more shares of HPQ in early April for about $400 million. While the news had sent the share price to the moon, it has since softened and returned to earth. Will you consider to acquire a stake in the printer and PC maker and partner Warren Buffett here?

Rather than chasing after Warren Buffett’s purchases, a straight-forward and cost-effective strategy is to just take positions in Berkshire Hathaway B and hold them for long-term.

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