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These stocks are surging as Warren Buffett reveals new stakes

Published 08/15/2024, 05:07 AM
© Reuters.
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Shares in Ulta Beauty (NASDAQ:ULTA) and Heico jumped in premarket trading Thursday after new securities filings revealed that Warren Buffett’s Berkshire Hathaway B (NYSE:BRKb) (NYSE:BRKa) had bought these stocks during the second quarter.

At the same time, the conglomerate trimmed its stakes in Apple (NASDAQ:AAPL), and Chevron Corp (NYSE:CVX) during the quarter, while also divesting stakes in some companies completely.

Shares in Ulta Beauty and Heico popped more than 16% and 8% in Thursday’s premarket trade, respectively.

Per 13-F filings released Wednesday, Berkshire Hathaway purchased approximately 690,000 shares of Ulta Beauty, valued at about $266 million as of June 30. The company also acquired around one million shares of Heico Corp.

Meanwhile, the filing also confirmed Berkshire's complete exit from Paramount Global, a rare misstep for Buffett. He acknowledged selling all shares in Paramount Global Class B (NASDAQ:PARA) at a loss during the Berkshire annual shareholder meeting in May, having offloaded a significant portion of that stake in the first quarter.

Berkshire also sold its entire position in the technology firm Snowflake (NYSE:SNOW). By the end of Q1, Berkshire had held 6.1 million shares in SNOW, valued at around $989 million.

By the close of Q2, Berkshire had nearly halved its Apple stake to 400,000 shares, valued at $84.2 billion, consistent with its Q2 earnings report. Buffett had previously reduced his Apple holdings by 13% in the first quarter, though the tech giant still represents about a third of Berkshire's overall portfolio.

It’s important to note that 13-F filings only serve as a snapshot of portfolio holdings as of the end of the quarter. This filing doesn't account for transactions made after June, such as the sale of Bank of America Corp (NYSE:BAC) shares in July. Moreover, it doesn’t include details on gains or losses from any sales.

In other notable moves, Berkshire sold nearly 4.3 million shares of Chevron Corp. (NYSE:CVX), though the energy giant’s share of the Berkshire portfolio increased to 6.6% as of June 30 when compared to 5.8% at the end of Q1.

Buffett’s conglomerate also reduced its holdings in Capital One by about 2.6 million shares, Floor & Decor Holdings Inc (NYSE:FND) by over 800,000 shares, and T-Mobile US Inc (NASDAQ:TMUS) by roughly 570,000 shares.

On the buying side, Buffett added 7.2 million more shares of Occidental Petroleum (NYSE:OXY), bringing the total stake to around 255 million shares, valued at nearly $16 billion, or 5.7% of the portfolio.

Additionally, he increased its position in Chubb (NYSE:CB) Limited by over 1.1 million shares, taking the total to 27 million.

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