For nearly $4 billion, more than 60% of Berkshire Hathaway’s US Bancorp stock was sold. Richard Buffett
Warren Buffett’s Berkshire Hathaway company has sold about $4 billion worth of US Bancorp stock, cutting its stake in the banking sector by more than 60% in just four months.
According to a report filed with the Securities and Exchange Commission on Thursday, the famed investor’s conglomerate has sold 84 million shares of the parent business of the US Bank since June 30.
One of Buffett’s company’s top holdings since 2007 is US Bancorp, which had 145 million shares valued at $8.1 billion at the beginning of January. Due to stock trades and this year’s 22% fall in the price of US Bancorp stock, there are currently just 53 million shares remaining, valued at $2.4 billion.
The cost basis of Berkshire before its sales was $5.4 billion, or around $38 per share. During the most active selling period, which was between July 1 and October 31, US Bancorp shares fluctuated around the $45 mark per share. As a result, Berkshire most certainly earned $600 million, or 18%, from its sales.
The overall investment in Buffett’s company, which owns some US Bancorp stock through its subsidiary New England Asset Management, has decreased from almost 10% to around 4% this year. It is free to liquidate the stake without telling shareholders because it no longer has to notify the SEC of any future stock sales because it owns less than 5% of the bank.
According to Berkshire’s most recent reports, it sold $4.7 billion worth of banking, financial, and insurance equities in the third quarter of this year, suggesting that a significant portion of the transactions took place at that time. The amount of US Bancorp stock that Buffett and his colleagues sold during the quarter will be disclosed in a portfolio update that is due the following week.
Berkshire reduced a few long-held positions even though it was a net buyer of stocks last quarter. For instance, it disclosed earlier this month that between September 1 and November 1, it sold BYD stock worth around $275 million. After not touching the bet since 2008, it has suddenly reduced its interest in the Tesla rival by 19%, or over $900 million, since July.