🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Berkshire slashes Wells Fargo, JPMorgan stakes; adds Barrick Gold

Published 08/14/2020, 04:27 PM
Updated 08/14/2020, 05:36 PM
© Reuters. FILE PHOTO: Berkshire Hathaway Chairman Warren Buffett walks through the exhibit hall as shareholders gather to hear from the billionaire investor at Berkshire Hathaway Inc's annual shareholder meeting in Omaha
GS
-
JPM
-
WFC
-
GOLD
-
BRKa
-

By Jonathan Stempel

(Reuters) - Warren Buffett's Berkshire Hathaway Inc (N:BRKa) said on Friday it has sold shares of some of the largest U.S. banks, slashing its stakes in Wells Fargo & Co (N:WFC) and JPMorgan Chase & Co (N:JPM) and exiting an investment in Goldman Sachs Group Inc (N:GS).

In a regulatory filing detailing its U.S.-listed investments as of June 30, Berkshire also disclosed a new 20.9 million share investment worth $563.6 million in Toronto-based Barrick Gold Corp (TO:ABX), one of the world's largest mining companies.

Investors monitor Omaha, Nebraska-based Berkshire's quarterly filings to see where Buffett and his portfolio managers Todd Combs and Ted Weschler see value.

Shares of Barrick have benefited from rising gold prices, which set a record last week, and rose 3.2% in after-hours trading following Berkshire's disclosure. Barrick did not immediately respond to a request for comment.

Berkshire reduced its Wells Fargo stake by 26% in the quarter to 237.6 million shares.

Since early 2018, Berkshire has shed more than half of its Wells Fargo shares, which were once worth $32 billion but lost value as the bank was hurt by scandals for mistreating customers. Buffett first invested in Wells Fargo in 1989.

Berkshire also reduced by 62% its stake in JPMorgan, where Combs is a director, to 22.2 million shares, and shed its remaining 1.9 million Goldman shares.

Buffett has not given up on the banking industry, after telling investors in May that banks were well-capitalized and capable of weathering the coronavirus pandemic.

Berkshire still invests in several banks including Bank of America Corp (N:BAC), where in the last month it invested more than $2 billion, giving it an 11.9% stake worth more than $27 billion.

In Friday's filing, Berkshire said it also exited its investment in Toronto-based Restaurant Brands International Inc (TO:QSR), the parent of Burger King and Tim Hortons.

© Reuters. FILE PHOTO: Berkshire Hathaway Chairman Warren Buffett walks through the exhibit hall as shareholders gather to hear from the billionaire investor at Berkshire Hathaway Inc's annual shareholder meeting in Omaha

Berkshire also has more than 90 operating units including the Geico car insurer, BNSF railroad and Dairy Queen ice cream.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.