Maybe you already know, but Warren Buffet has sold Barrick Gold. You’re thinking why? Let me explain it to you!
00:00 Investing is just a game in the end and you need to play this game of investing to win the game, of course. For that, you need to have certain strategies and play the game without telling the public.
01:05 First, let me go into which companies he invested his money in.
1. He pumped 8.9 billion dollars into Verizon Communications.
Of course the company Verizon is a tele-communications company.
2. Chevron Corporations has received 4.1 billion dollars of investment money.
They are big player in oil and gas exploration and production corporation.
3. Marsh & McLennan companies have received an investment of 499 million dollars.
They are a global services firm with businesses in insurances, risk management, reinsurances, investment advisory and management consulting.
When these 3 companies received their investments from Berkshire Hathaway, their stock prices grew right away.
In the last quarter of last year, when Warren Buffett invested in these 3 companies, he pulled a few shares from Apple. Berkshire Hathaway had 887 million shares in Apple, but just a quarter before in Q3, they had over 944 million shares in Apple. Meaning Warren Buffett sold off 57 million shares of Apple. That’s about 6 % of the shares they had.
Berkshire Hathaway has been re-arranging most of their investments.
02:44 But why would you re-arrange investments?
Having a strategy is very important, but adjusting your strategy to make the most impact, is what intelligent investors should do. And that’s exactly what Berkshire Hathaway has done.
Warren Buffett and his investment managers Todd Combs and Ted Weschler have re-arranged their portfolio when the pandemic struck last year.
Berkshire Hathaway had a huge interest in banks, which did a great job during the pandemic,
but now that the pandemic is cooling down and banks are currently being exposed to consumer credits and commercial real estate, it is time to move the money again.
With that, Berkshire Hathaway has taken out their investments from JPMorgan, PNC Financial Services and M&T Bank. And even Wells Fargo had a 59% cut of their investments from Berkshire Hathaway. Even the mining company Barrick Gold was completely cut.
Warren Buffett invested more in the companies Merck&co, Abbvie and Bristol Myers.
The shares that Berkshire Hathaway had in the Covid vaccine Pfizer has been sold off completely.
And by re-arranging all their investments, Buffett has outperform the S&P500 index.