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Berkshire Hathaway Buys NRG Energy Inc., Adds to IngersollRand Company Ltd. and SanofiAventis, sells AnheuserBusch Companies Inc, mutes about ConocoPhillips

August 14, 2008 | About:

What did Warren Buffett buy during the second quarter? To our surprise, he did not buy any banks or other financials. He might have bought ConocoPhillips, but he keeps the information confidential. This is what we know about Berkshire's buys and sells during the second quarter.

Warren Buffett buys NRG Energy Inc. during the 3-months ended 06/30/2008, according to the most recent filings of his investment company, Berkshire Hathaway. Warren Buffett owns 38 stocks with a total value of $57.9 billion. These are the details of the buys and sells.

  • New Purchases: NRG,
  • Added Positions: IR, SNY,
  • Reduced Positions: BUD,

For the details of Warren Buffett's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Warren+Buffett

Added: IngersollRand Company Ltd. (IR)

Warren Buffett added to his holdings in IngersollRand Company Ltd. by 501.82%. His purchase prices were between $36.7 and $46.18, with an estimated average price of $42.6. The impact to his portfolio due to this purchase was 0.3%. His holdings were 5,636,600 shares as of 06/30/2008.

Ingersoll Rand Company is one of the leading providers of security and safety climate control industrial productivity and infrastructure products. In each of these markets the company offers a diverse productportfolio that includes well-recognized industrial and commercial brands. IngersollRand Company Ltd. has a market cap of $12.55 billion; its shares were traded at around $39.06 with a P/E ratio of 3.47 and P/S ratio of 1.27. The dividend yield of IngersollRand Company Ltd. stocks is 2%.

Added: SanofiAventis (SNY)

Warren Buffett added to his holdings in SanofiAventis by 8.84%. His purchase prices were between $32.32 and $38.04, with an estimated average price of $35.9. The impact to his portfolio due to this purchase was 0.02%. His holdings were 3,903,933 shares as of 06/30/2008.

Sanofi-Synth?labo is a leading global pharmaceutical company. SanofiAventis has a market cap of $94 billion; its shares were traded at around $36.02 with a P/E ratio of 13.05 and P/S ratio of 2.19. The dividend yield of SanofiAventis stocks is 3.1%.

New Purchase: NRG Energy Inc. (NRG)

Warren Buffett initiated holdings in NRG Energy Inc. His purchase prices were between $40 and $44.43, with an estimated average price of $42.4. The impact to his portfolio due to this purchase was 0.24%. His holdings were 3,238,100 shares as of 06/30/2008.

NRG Energy Inc owns and operates a diverse portfolio of power-generating facilities primarily in the United States. Its operations include baseload intermediate peaking and cogeneration facilities thermal energy production and energy resource recovery facilities. NRG Energy Inc. has a market cap of $8.31 billion; its shares were traded at around $35.82 with a P/E ratio of 17.67 and P/S ratio of 1.46.

Reduced: AnheuserBusch Companies Inc. (BUD)

Warren Buffett reduced to his holdings in AnheuserBusch Companies Inc. by 61.07%. His sale prices were between $46.6 and $61.92, with an estimated average price of $53.5. The impact to his portfolio due to this sale was -0.91%. Warren Buffett still held 13,845,000 shares as of 06/30/2008.

Anheuser-Busch Companies is the holding company parent of Anheuser-BuschIncorporated and to a number of subsidiaries that conduct variousother business operations. The company's operations are comprised of thefollowing business segments: domestic beer international beer entertainment packaging such as aluminum beverage container recycling malt production rice milling real estate development turf farming metalized paper label printing and transportation services. AnheuserBusch Companies Inc. has a market cap of $48.91 billion; its shares were traded at around $68 with a P/E ratio of 23.57 and P/S ratio of 2.85. The dividend yield of AnheuserBusch Companies Inc. stocks is 2.2%.

Buy or Sell? ConocoPhillips (COP)

Warren Buffett keeps his portfolio about ConocoPhillips confidential. The filings says: "Confidential information has been omitted from the Form 13F and filed separately with the Commission. Included in the confidential filing is information regarding Berkshire Hathaway's position in ConocoPhillips. At March 31, 2008, shares held in ConocoPhillips were included in Berkshire Hathaway's public Form 13F."

ConocoPhillips is a major international integrated energy company with operations in some 49 countries. ConocoPhillips has a market cap of $120.63 billion; its shares were traded at around $82.37 with a P/E ratio of 7.20 and P/S ratio of 0.60. The dividend yield of ConocoPhillips stocks is 2.3%.


Rating: 4.5/5 (17 votes)

Comments

kfh227
Kfh227 premium member - 6 years ago
NRG? Well, time to start thinking about that one. To bad, it has no dividend.

Does anyone know what would cause a confidential filing in COP?
alanb9
Alanb9 premium member - 6 years ago
Either he's buying or selling. :)

Whichever he's doing, he doesn't want the fact known and the price influenced until he can either assimilate his full position or liquidate his position.

I think he is allowed to ask the SEC for confidentiality under either of those conditions. Not sure if there are any others.
jsterling
Jsterling - 6 years ago
So much for the logic that he'd be buying the financial stocks he owns since they are "bargains" now. He's wise enough not to catch a falling dagger. I'm willing to bet he's buying Conoco.

I'm a COP shareholder so I'm biased I guess.

kfh227
Kfh227 premium member - 6 years ago
JSterling,

I think that what most of us are shocked about is that USB, which WEB paid about $30 for was down to under $23 this quarter. He could have easily bought more at $25 or less but did not. I personally am shocked by this. USB is an example of course.

Alan,

Thanks for the info on COP and what the confidentiality might be about.
svoleti7
Svoleti7 premium member - 6 years ago
okay people. this report was for the period ended 6/30/08. The panic days were the 5-6 days preceding July 15th. Since the start of the credit fiasco, USB did not sell for less than 28 bucks until June 30. From around July 1 - July 15th it sold off to $20. We won't know about any purchases during the panic period until at least the next report.

As for 'catching a falling knife', it was said in the early nineties that Buffett wouldn't need to worry about who would get his fortune, if he kept trying top pick the bottom in bank stocks.
ltlmac55
Ltlmac55 - 6 years ago
Probably selling COP since he sold a small piece last time it was in the 90's. Then again I own it and consider it a bargain at these prices so who knows...
dwiprut
Dwiprut - 6 years ago
Why doesn't gurufocus show the UNP purchase?
gurufocus
Gurufocus premium member - 6 years ago
Street Insider's report is incorrect:

1. Warren Buffett did NOT buy more UNP. The share number change is due to the 2:1 split, which streetinsider failed to adjust.

2. COP did not show up in the latest filing, because Warren Buffett kept it confidential. streetinsider thought it is a sale.

We think most probably it is a buy. We will have an article on it.

kfh227
Kfh227 premium member - 6 years ago
Svoleti7,

Very good point on the period for this reporting. Maybe WEB did buy financials in early July when extremely irrational fear and panic set in.

Time will be the answer I suppose.

So, did anyone win this quarters contest?
Alex Garcia
Alex Garcia premium member - 6 years ago
A couple members did guess the increasing in holdings (IR,SNY) but I do not know if that constitutes as a "Buy".

19.Thecynic says on Aug 04, 2008 at 1:14 PM:

WFC, USB, KFT, IR <------only 3 stocks allowed, he inserted as 4th, does that count?

29.Nemo17 says on Aug 05, 2008 at 6:54 AM:

PG, SNY,NKE <--------Althought not a new position, SNY was mentioned

30.Jsterling says on Aug 05, 2008 at 8:36 AM:

PKX SNY KFT

40.Yabz says on Aug 07, 2008 at 4:37 AM:

WFC, IR,various (non-US?) health/drug stocks <-----does SNY count as "various non-Us health/drug stock?

42. Brkabrkb says on Aug 07, 2008 at 10:04 AM:

DOW, SNY, USB

43. Alex24_malaga says on Aug 07, 2008 at 1:10 PM:

WFC - Cheaper than ever, he probably bought a lot more during the quarter

SNY - WEB bets on pharmaceuticals.

GE - Global company, 50% of the revenues are coming from outside the US

54.Mppeterson says on Aug 12, 2008 at 9:48 AM:

My thoughts are:

WFC

UNH

SNY

Other likely options include:

GSK

KMX

IR

USB

JNJ

KFT

How are the 2 winners decided? There will likely be many correct responses this quarter.

^^^^more than 3 choices entered

augustabound
Augustabound - 6 years ago
AlexG Wrote:

-------------------------------------------------------



> ^^^^more than 3 choices entered



I've mentioned that both this quarter and last during the contest in each thread. No response from gurufocus as of yet. Even people who posted after me still put more than 3. lol

I suggest to decrease the alleged confusion make the first post short and sweet and bold the up to 3 rule.........people still won't read it though.


gurufocus
Gurufocus premium member - 6 years ago
If someone enters more than 3 stocks for the contest, we just use the first three.

The winners should have at least two of the Warren Buffett's buys (or add) correct.

Please leave your comment:


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