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Welcome to review：Buffett's 10 Key Events of the Past Year

Welcome to reserve the live about #2023 BRK Shareholder Meeting interpretation (Chinese) and(English) by @TBlive

In recent years, Buffett has continued to buy $Occidental(OXY)$ and $Helmerich & Payne(HP)$ , but sold $Taiwan Semiconductor Manufacturing(TSM)$ in less than 3 months? And continued to sell $Boyd Gaming(BYD)$ , and sold all $Verizon(VZ)$ , why?

Question for Tigers(welcome to reply to win rewards)

• Tigers' comments on Buffett's top buys & sells: What are your thoughts ?

• Which of Buffett‘s stock holding you would like to buy and hold？

• If you can't be like Buffett, will you consider buying BRK.A or BRK.B instead?

• If you are attending the the 2023 Shareholder meeting, what question would you want to ask Buffett?

• ·In your opinion are there any posts in Tiger community that are worth reading?

Key Points for this article:

• The logical on Berkshire's 6 major tradings in recent years

• Does Buffett’s investing affected by the March banking crisis?

• Buffett's strategic reminders under recessionary economy

Investors all over the world believe in Buffett as he pays attention to the recurrence of value stocks, prefers those companies with strong performances from certain business units, and he stays patient and keeping a sizable cash position. And always gets very good return on investment

The company $Berkshire Hathaway(BRK.A)$ , owned by Warren Buffett, is currently quoted at $488606.06 per share, and the YTD in 2023 is 4.24%. $Berkshire Hathaway(BRK.B)$ is currently quoted at $323.22 per share, and the YTD in 2023 is 4.64%.

At the same period, the $S&P 500(.SPX)$ rose by 6.05%, and the $NASDAQ(.IXIC)$ rose by 12.73%.

The historical high of BRK.A is on March 29, 2022, at a price of $544,389.25. At that time, the market attributed the reasons for the price new high @CrystalRose to investors flocked toward tried-and-true businesses that make money and have resistance to inflation and other market headwinds.

Berkshire is such a company. The company's long-term investment in high-quality companies with limit downside risk, and can capture upside from different sectors, which the decades 20%+ annualized returns performances illustrates the power of a diversified portfolio that

As of December 31, 2022, Berkshire's U.S. stock position @Tiger_comments was $299.008 billion, a slight increase from the previous quarter's $296.097 billion, the first rebound after two consecutive quarters of decline.

The latest data shows that the top 10 holding stocks are @WealthSquad ： $Apple(AAPL)$ （44% of invested assets） ， $Bank of America(BAC)$（8.9% of invested assets） ， $Chevron(CVX)$ （ 8.4% of invested assets）， $Coca-Cola(KO)$ （7.3% of invested assets）， $American Express(AXP)$（7.2% of invested assets） ， $The Kraft Heinz Company(KHC)$ ， $Occidental(OXY)$ ， $Moody's(MCO)$ ， $Activision Blizzard(ATVI)$ ， $Helmerich & Payne(HP)$

However, what often occupies the headlines of the news is the position change of Buffett's company in the past year.

According to the timeline, the following 6 major trading trends may be worth reviewing again.

1. Buffett Bought HP in Q1 of 2022 @ToughCoyote

In February 2022, Warren Buffett bought 121 million shares of $HP Inc(HPQ)$ ,for $4.2 billion. At that time, the market commented the reason for the low valuation, coupled with the surge in printers demand and etc from work at home and online classes.

However, as of press time, the transaction showed to be a loss so far. For future perspective, according to the third-quarter financial report released on December 23, 2022, HP's revenue fell by 4% year-on-year, but its net profit increased by 0.99% year-on-year, and its future EPS expectations were lowered.

2.Buffett dumped 4 stocks in Q2 2022 and bought Apple and Activision😉 @LMSunshine

It is worth noting that a bear market may be a period when Buffett and his investment team reduce their exposure to specific companies or industries. In Q2 2022，Buffett sold the 100% position of Verizon, cut 50% of consumer staples stock $STORE Capital(STOR)$ ，then, cut around 15% of $General Motors(GM)$，and cut 5% of $U.S. Bancorp(USB)$ .

After buying a total of $9 billion in Verizon in 2020, Berkshire liquidated these shares in the first half of 2022. Buffett didn't say the reason publicly, and it was transaction with small mount loss. In the second quarter of 2022, $General Motors(GM)$ also got cut, mainly due to the multiple headwinds facing the auto industry may be difficult to ignore in the face of recession expectations.

$U.S. Bancorp(USB)$ acquired $Mitsubishi UFJ(MUFG)$ 's America business in late 2021. It appears that Buffett may not have been happy with the revenue synergies from the post-acquisition strategic shift (stocks of banks that made large acquisitions all fell), and U.S. Bancorp was trading at a triple price to its book value or net value, so the company has reduced its holdings.

3.Why did Berkshire sell $Taiwan Semiconductor Manufacturing(TSM)$ in less than 3 months?

In the Q3 2022, Berkshire Hathaway shocked the world for bought the TSMC for $4.1 billion at a price of $68 per share, but in the Q4 2022, Berkshire Hathaway sold 86% of its position in TSMC at a price of about $71 per share. Why?

TSMC is the clear leader in semiconductor manufacturing. With a global market share of more than 50%, TSMC's competitive advantages are the world's most advanced chip technology and large-scale production capacity .

The selling may not be entirely due to slowing demand for chips (Buffett had pointed out that long-term demand for chips is expected to rise for decades), but more due to geopolitical risks: especially the pressure of growing tensions between the United States and China. (The United States successfully had prevented TSMC from producing high-end chips for Chinese companies such as Huawei, and TSMC is also investing more money in building new factories in the United States to reduce its geopolitical risks)

”Buffett avoids risk and it is possible that the additional measures and increasing geopolitical risk have caused him to rethink his TSMC investment.“ @Alvin Chow

4.Buffett also sold $BYD Co., Ltd.(BYDDY)$ $BYD COMPANY(01211)$ @Value_investing

As of January 10, 2023, Buffett has reduced his holdings of BYD seven times, from 20.04% to 13.97%, the same time cut BYD's HK shares holding from 12.9% to 11.87%.

There are voices in the market that BYD's development has almost reached a bottleneck and the stock price seems to be difficult to break through, mainly due to the epidemic and weak consumer power.

However, some voices believe that BYD's fundamentals are still strong, and its sales of new energy vehicles have always been the global champion. Looking at future trends, there is still room for improvement in China's market share, and overseas markets are still in their infancy. Referring to Toyota's historical P/E ratio, the valuation pivot is around 10 times. Based on this calculation, BYD's forward market value in 2 trillion, how do you think of it?

5.Why Buffett Keeps Buying $Occidental(OXY)$ & $Chevron(CVX)$ @MillionaireTiger

In the Q1 of 2023, Berkshire acquired Chevron and Occidental Petroleum. Especially in the Q1, the Occidental Petroleum position was increased by three times to 23.6% of Buffett's full holdings, costing more than $1 billion. (The Big money bets on Occidental has been since 2019.)

Both Occidental Petroleum and Chevron are large oil producers. With the surge in global oil prices in Q1, both companies have given Berkshire huge profits and cash flow returns. And from the perspective of valuation, both stocks carry valuation multiples well below the S&P 500 average(18 times ) for the coming year. Chevron stock goes for less than 11 times and Occidental goes for just 7.5 times.

6.In addition, Buffett also increased his investment in Japan

In April 2023, Buffett attracted the market‘s attention by against the market and increased his investment in Japan, See the full link of "🎁 ETFs to Follow 93-yr-old Warren Buffett to Increase Japan Invests?" Are Japanese assets really cheap, and what are the suitable opportunities? Welcome to read the analysis from "How to participate in Japan Market?" @MaverickWealthBuilder

Finally, I would like to mention about whether Buffett was affected by the March banking crisis in 2023? @JudyFrederick

Financial stocks were hit hard. In fact, the five biggest losers of Berkshire's portfolio for the month were all financials.

• The 12th largest holding of Berkshire's portfolio, $Citigroup(C)$ closed down 7.45% in March;

• The 22nd largest holding- $Bank of New York Mellon(BK)$ fell 10.69% in March;

• Ally Financial Inc (ALLY), the 29th largest holding down 15.17% in March;

• Then the 36th largest holding-$U.S. Bancorp(USB)$ fell 24.47% in March and down 11.8% in April so far;

• Jefferies Financial Group Inc. (JEF) the 46th largest holding fell 16%% in March.

Regarding the outlook for the economy in 2023, Buffett mentioned a strategy for a recessionary economy @投资理财 in his 2023 shareholder letter: Buffett expressed concern about the deep-rooted U.S. fiscal deficit and warned of its potential consequences. He urged everyone to avoid reckless actions that could lead to cash flow shortfalls.

🎁Rewards:

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• 🐯 The First 10 and Last 10 commentator with qualified comments will receive another 10 Tiger Coins

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⏰Activity Duration

• 4 May 2023-11 May 2023 (24 pm)

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