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Berkshire’s Portfolio Changes During Fourth Quarter Of 2012

Published 02/18/2013, 02:28 AM
Updated 07/09/2023, 06:31 AM
GM
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KHC
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GASI
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VRSN
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DTV
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WFC
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ADM
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WBC
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BRKb
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DVA
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ADM
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WBC
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MDLZ
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In its SEC 13-F filing for the fourth quarter 2012, Berkshire Hathaway revealed numerous changes to its portfolio.

The largest addition was an increase of $580 million to its position in Wells Fargo (WFC). As a result, WFC has become Berkshire’s largest common stock investment with a value of $15.0 billion as of December 31, 2012. Warren Buffett has held a large position in WFC since 1990, and has added to his position every year since 2005. Other increases to existing positions include DaVita (DVA) (+$375 million), General Motors (GM) (+$250 million), DirecTV (DTV) (+$225 million), and Wabco Holdings (WBC) (+$150 million).

Berkshire also reported initial investments in Archer Daniels Midland (ADM) (+$150 million) and Verisign (VRSN) (+$140 million).

The largest reduction was in Kraft Foods (KRFT) and Mondelez (MLDZ). KRFT is a fourth quarter 2012 spinoff from Kraft (KFT), and Mondelez (MLDZ) is the new name for the remaining businesses. The combined reduction in Berkshire’s position in KRFT and MLDZ was $900 millon. Berkshire’s remaining holdings in these two companies is valued at $400 million.

The portfolio changes to Wells Fargo, KRFT, and MLDZ are believed to have been made by Warren Buffett, since his initial positions generally exceed $1 billion, and these investments were made prior to the arrival of his portfolio managers, Todd Combs and Ted Weschler. The other portfolio changes (less than $400 million) were apparently made by Combs and/or Weschler.

I was quoted in a Bloomberg article on this topic:

“Most of the new holdings in the portfolio are coming from Todd and Ted,” said David Kass, a professor at the University of Maryland’s Robert H. Smith School of Business, who has taken students to visit Buffett in Omaha.

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