Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial) CEO Warren Buffett (Trades, Portfolio) disclosed on Tuesday that the conglomerate boosted its position in six companies in the first quarter: Apple Inc. (AAPL, Financial), Monsanto Inc. (MON, Financial), Teva Pharmaceutical Industries Ltd. (TEVA, Financial), US Bancorp (USB, Financial), Bank of New York Mellon Corp. (BK, Financial) and Delta Air Lines Inc. (DAL, Financial).
Buffett buys more Apple during the quarter
Berkshire invested in 74,233,671 shares of Apple for an average price of $172.19 per share. The conglomerate dedicated 6.59% of its portfolio to the transaction. Based on GuruFocus estimates, Buffett is gaining approximately 30% on the stock.
Buffett announced the transaction in a May 4 CNBC interview, saying Berkshire “bought more stocks by a considerable margin” than it sold during the quarter. CEO Tim Cook said he was “thrilled” to have Buffett as a major shareholder, adding he “has always been grateful” for Buffett’s advice.
Apple’s profitability ranks 8 out of 10, driven by a strong Piotroski F-score of 7, a GuruFocus business predictability rank of 2.5 stars and margins and returns that outperform over 95% of global competitors.
Monsanto and Teva
Berkshire invested in 7,261,387 shares of Monsanto for an average price of $120.33 per share. With this transaction, the conglomerate increased its portfolio 0.45%.
Buffett doubled his bet in Teva Pharmaceuticals, adding 21,663,989 shares for an average price of $19.52 per share. The transaction increased the portfolio 0.2%.
Teva’s profitability ranks a modest 5 as the company’s margins and returns underperform over 85% of global competitors. On the other hand, Monsanto’s profitability ranks 8 out of 10 primarily due to a strong Piotroski F-score of 7 and margins that outperform 91% of global competitors. GuruFocus ranks Monsanto’s business predictability 3.5 stars out of 5.
A summary of Buffett’s other top buys
The conglomerate also invested in 3,788,844 shares of US Bancorp, 1,372,665 shares of Bank of New York Mellon and 488,962 shares of Delta. The three companies’ share prices averaged $54.70, $55.65 and $55.16 during the quarter.
Buffett divests IBM and Graham Holdings
Buffett’s conglomerate closed its position in International Business Machines Corp. (IBM, Financial), selling 2,048,045 shares for an average price of $158.26 per share. Berkshire also sold its 107,515 shares of Graham Holdings for an average price of $586.93 per share. The two trades reduced the portfolio 0.19% in the aggregate.
Disclosure: No positions.
