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Warren Buffett’s Bought Something Big Again?

November 06, 2005 | About:

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As we enter the earning season, many of us Buffett fans are watching what Warren Buffett had bought, especially at GuruFocus, it is our responsibility to let investors know what Buffett had invested in. It is reported that Berkshire Hathaway had a big drop in earnings during the third season. What about stocks? Did Buffett buy anything big?

We reported our study that Buffett spent about $3 billion on Anheuser-Busch (BUD) and became its biggest shareholder. As we went through the most recent quarterly report of Berkshire , we found that Warren Buffett did buy something big during the third quarter. The total cost of stocks for Berkshire during the last 12 months has been increasing steadily. By the end of the second quarter of 2005, Berkshire spent $3 billion more on stocks, which we believe were spent on BUD. Surprisingly, during the third quarter of 2005, Berkshire spent more than $2 billion additional on stocks.

Quarter Ended On

2004-12-31

2005-03-31

2005-06-30

2005-09-30

Total Cost of Stocks Bought ($million)

9,056

10,962

12,944

15,083

So what did Buffett buy with that two billion dollars? Did he add more BUD as the prices went down? Or did he buy something new? If he bought something new, this thing has to be big. What can that be? Wal-Mart?

Buffett Asset Allocations

As Buffett spent more on stocks, Berkshire's cash holding went down. For the first time during Berkshire's history, its cash position went down for 2 consecutive quarters. In last year Buffett said many times that he had a hard time finding stocks to buy. Now it looks like he is getting some ideas.

What are these ideas? GuruFocus will keep you posted.


Rating: 3.5/5 (2 votes)

Comments

sgeranpa
Sgeranpa - 8 years ago
Walmart maybe?
ValueGuy2
ValueGuy2 - 8 years ago
Does your cash number include the "investment"/loan to MidAmerican Energy's bid for PacifiCorp?
gurufocus
Gurufocus premium member - 8 years ago
NO

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