Berkshire Hathaway is one of the largest investment firms in the world. Since the most famous investor duo, Warren Buffett and Charlie Munger, who are known for their value investing, sit on the board, they haven’t had many buying opportunities lately through high stock valuations. That has apparently changed as the company has now disclosed big purchases.
Berkshire Hathaway’s first-quarter earnings fell more than 53%. This is mainly due to the swing in the paper value of its investments, but the company is sitting on a huge pile of cash, so it has used the downturn in the markets to make big purchases. Of course, even though the company bought mostly appreciated paper from various companies for more than $50 billion last quarter, it still has about $106 billion left.
What was Buffett buying?
For example, there was an increase in his stake in Chevron Corp. which now stands at $26.9 billion, making it one of Berkshire’s 4 largest investment positions. Chevron Corp. has quadrupled its profits year-over-year.
In addition, the purchase of a 14.6% stake in oil and gas producer Occidental Petroleum, in which Berkshire has invested about $6 billion. Then there was the purchase of the insurance company Alleghany for $11.6 billion.
Earlier, we also reported on the purchase of a stake in HP, where the company bought 121 million shares, giving it just over 11% of the company.
Buffett also revealed that the company now holds an expanded 9.5% stake in Activision Blizzard Inc. shares. This company has been the talk of the town lately in connection with its acquisition by Microsoft for nearly $69 billion.
As a result of those purchases, Berkshire has cut back its own share buybacks to $3.2 billion from $6.9 billion in the fourth quarter of 2021