Buffett wasn't Adding to Apple
On May 15th, Berkshire issued a clarification announcement on the official website about the change of the statistical caliber of holdings. The core idea is that the statistical caliber of holdings in 23Q1 has changed, and we cannot simply use 2023Q1 to compare 13F in 2022Q4.
Berkshire said:
1. In December 1998, Berkshire acquired General Re (General Re Corp.).
2. From December 1998 to December 2022, General Re's stock holdings were disclosed by New England Asset Management Inc. ("NEAM") under information disclosure number #028-05194 (Form 13F File).
3. From the first quarter of 2023, the holdings of New England Asset Management Inc. will be divided into two parts:
1) The client is the position of General Reinsurance, which is consolidated into Berkshire's 13F statement;
2) The principal is the position of other clients, which will continue to be disclosed in the name of NEAM.
4. Therefore, Berkshire's 13F document in 2023Q1 includes the positions that General Reinsurance originally disclosed in New England Asset Management Inc.
Comparing this announcement with Berkshire's 13F, we can find:
1. Buffett did not increase his holdings in Apple, Bank of America, HP, Citibank, Markel, and did not buy Diageo.
These stocks are the holdings of General Reinsurance, and they will only be disclosed under the name of NEAM in 2022Q4 and under the name of Berkshire in 2023Q1. It would be misleading to think of these stocks as Buffett adding to his positions.
2. Berkshire actually increased its position in 4 stocks.
Occidental Petroleum, increased holdings;
Paramount Global, increased holdings;
Capital One Financial, new position;
Vitesse Energy, new position but not buy.
3. Berkshire's net sales in 2023Q1 are about $10 billion
After excluding the impact of NEAM, Berkshire sold $13.3 billion, bought $2.9 billion, and sold a net $10.4 billion. Apparently, Buffett still feels that market valuations are too expensive.
If you regard NEAM's position as Buffett's 2023Q1 purchase, it will greatly underestimate the strength of Buffett's sale.
4. Acquired Vitesse Energy as a result of the spin-off.
Many people wonder: "Why did Berkshire buy Vitesse Energy, and only bought $971,000? This amount is not worth the time for Buffett's two investment managers to waste time thinking about it. A 10-fold increase will not affect Berkshire Hill's value."
This suspicion is correct. Berkshire did not buy Vitesse Energy, a stock that Jefferies Financial Group Inc. (JEF) distributes to shareholders in accordance with stock dividends.
Summary: This quarter was a special case, and Berkshire's 13F next quarter will be comparable again.
$Berkshire Hathaway-B(BRK.B.US$ $Berkshire Hathaway-A(BRK.A.US$ $Apple(AAPL.US$ $HP Inc(HPQ.US$ $Diageo(DEO.US$ $Bank of America(BAC.US$ $Chevron(CVX.US$ $Markel Group(MKL.US$ $Citigroup(C.US$ $Occidental Petroleum(OXY.US$ $Paramount Global-B(PARA.US$ $Paramount Global-A(PARAA.US$ $Capital One Financial(COF.US$ $Vitesse Energy(VTS.US$ $Dow Jones Industrial Average(.DJI.US$ $Nasdaq Composite Index(.IXIC.US$ $S&P 500 Index(.SPX.US$
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