Warren Buffett once again was a net seller of equities in the fourth quarter, slicing, slashing and outright exiting stakes across a series of sectors that have fallen out of his favor. But the Oracle of Omaha did pull off a few interesting buys in Q4, too.
The chairman and CEO of Berkshire Hathaway (BRK.B) continued to pull back on bets in the financial and healthcare sectors, with a particular focus on ridding himself of positions in the pharmaceuticals industry.
On the other side of the ledger, Buffett made incremental additions to holdings with exposure to the housing market, upped a major energy sector bet in a big way, backed another initial public offering (IPO) and even got behind an international motorsport circuit.
We know what the greatest long-term investor of all time has been up to because the U.S. Securities and Exchange Commission requires investment managers with at least $100 million in assets to file a Form 13F quarterly report disclosing changes in share ownership. These documents add an important level of transparency to the stock market and give Buffett-ologists a bead on what the Berkshire chief is thinking.
When Buffett initiates a stake in some company, or adds to an existing one, investors read into that as a vote of confidence. But if he pares his holdings in a stock, it can spark investors to rethink their own investments.
Here’s the scorecard for what Warren Buffett was buying and selling during the fourth quarter of 2021, based on Berkshire Hathaway’s 13F filed on Feb. 14, 2022, for the period ended Dec. 31, 2021. You can check out the entire list of Buffett stocks here, or continue reading if you’re most interested in Buffett’s most recent transactions.
And remember: Not all “Warren Buffett stocks” are actually his picks. Some of Berkshire Hathaway’s positions are handled by lieutenants Ted Weschler and Todd Combs.
Current share prices are as of Feb. 14, 2022. Holdings data is as of Dec. 31, 2021. Sources: Berkshire Hathaway’s SEC Form 13F filed Feb. 14, 2022, for the reporting period ended Dec. 31, 2021; and WhaleWisdom.
- Action: Reduced stake
- Shares held: 61,412,910 (-0.01% from Q3 2021)
- Value of stake: $2.8 billion
Warren Buffett reduced Berkshire Hathaway’s exposure to one of his more recent favorite stock picks by an immaterial amount in Q4. The holding company shed 350,000 shares, or less than 0.01% of its stake, in supermarket operator Kroger (KR, $45.69).
Buffett first bought Kroger in the fourth quarter of 2019 and quickly built on the position over the following two years. Shares are up by 57% on a price basis since Buffett initiated the position, boosted by the pandemic and operational tailwinds. Once you throw in dividends, the KR position has delivered a 66% total return.
Kroger operates roughly 2,750 retail food stores operating under such banners as Dillons, Ralphs, Harris Teeter and its namesake brand, as well as 1,585 gas stations and even 170 jewelry stores under banners including Fred…
Read More: 10 Stocks Warren Buffett Is Selling (And 7 He’s Buying)