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Holly LaFon
Holly LaFon
Articles (10163)  | Author's Website |

Warren Buffett's Berkshire Discloses AT&T, Doubles Phillips 66, Sells 3

Buffett sells 2 television stocks in 3rd quarter

Warren Buffett (Trades, Portfolio), CEO of Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) and the world’s most famous investor, or one of his two portfolio managers, Todd Combs and Ted Weschler, disclosed ownership of one new stock in the third quarter, their updated portfolio showed Friday.

The new third quarter new addition for Berkshire was AT&T (NYSE:T), which they received as a result of owning Directv when AT&T acquired it in July. Berkshire also doubled their stake in Phillips 66 (NYSE:PSX) and sold out of Cable One Inc. (NYSE:CABO) and Viacom Inc. (VIAB), losing Directv as it became part of AT&T.

In September, Buffett called the U.S. economy’s rate of growth of 2% “not bad,” telling CNBC, “We’re still on that path we’ve been on for six years.”

Last quarter, Buffett’s team also bought only one new holding, an 8.4% stake in Axalta Coating Systems Ltd. (NYSE:AXTA) that took only a 0.6% space in the portfolio. Of his few other notable moves, he nearly tripled his stake in Phillips 66 (NYSE:PSX) and sold out of National Oilwell Varco (NYSE:NOV).

Buffett’s company ended the third quarter with $66.3 billion on its balance sheet, and saw record net earnings of $9.4 billion, driven largely by a $4.4 billion gain from its holdings of Kraft Heinz. 

AT&T (NYSE:T)

Berkshire received 59,320,756 shares of AT&T, giving it 1.52% weight in the portfolio. The holding equals 0.96% of the company’s shares outstanding. AT&T traded with an average price of $34 for the quarter.

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AT&T Inc. was incorporated under the laws of the State of Delaware on Oct. 5, 1983. AT&T Inc. has a market cap of $199.63 billion; its shares were traded at around $32.45 with a P/E ratio of 36.96 and P/S ratio of 1.26. The dividend yield of AT&T Inc stocks is 5.79%. AT&T Inc. had an annual average earnings growth of 3.0% over the past 10 years.

Phillips 66 (NYSE:PSX)

Berkshire boosted its position in Phillips 66 from 29,486,926 shares to 61,486,926 shares, a 107% increase from the previous quarter. His holding stands at 11.4% of the company, which occupies 3.71% of the portfolio. Phillips 66 traded with an average price of $79 for the quarter.

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Phillips 66 was incorporated in Delaware on Nov. 10, 2011. Phillips 66 has a market cap of $47.52 billion; its shares were traded at around $89.08 with a P/E ratio of 10.4 and P/S ratio of 0.43. The dividend yield of Phillips 66 stocks is 2.45%.

Sells

Cable One Inc. (NYSE:CABO)

Berkshire sold their entire stake of 107,575 shares of Cable One Inc., purchased in the second quarter. The share price had risen about 2% on average.

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Cable One Inc. has a market cap of $2.74 billion; its shares were traded at around $468.99 with and P/S ratio of 3.4. The dividend yield of Cable One Inc. stocks is 0.32%.

Directv (NYSE:DTV)

Berkshire sold 31,353,468 shares of Directv, a holding in the portfolio since the third quarter of 2011. Directv’s average share price in the third quarter was $93, leaving Berkshire with a total estimated gain of 65%.

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Directv was incorporated in Delaware in 2009. The company is a provider of digital television entertainment in the U.S. and Latin America. Directv has a market cap of $47.18 billion; its shares were traded at around $93.55 with a P/E ratio of 16.2 and P/S ratio of 1.42. Directv had an annual average earnings growth of 26.6% over the past five years.

Viacom Inc. (VIAB)

Berkshire sold 5,646,721 shares of Viacom Inc., a holding in the portfolio since first quarter 2012. The company’s average share price for the quarter was $50, giving Berkshire a total estimated gain of 10%.

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Viacom Inc. was organized in Delaware in 2005. The company is an entertainment content company that connects with audiences through television content across television, motion picture, online and mobile platforms in more than 165 countries and territories. Viacom Inc. has a market cap of $20.53 billion; its shares were traded at around $51.75 with a P/E ratio of 11.28 and P/S ratio of 1.64. The dividend yield of Viacom Inc stocks is 2.82%. Viacom Inc had an annual average earnings growth of 11.3% over the past 10 years. GuruFocus rated Viacom Inc the business predictability rank of 4-star.

See more Warren Buffett (Trades, Portfolio) stocks at his portfolio here. Not a Premium Member of GuruFocus? Try it free for 7 days.

About the author:

Holly LaFon
I'm a financial journalist with a Master of Science in journalism from Medill at Northwestern University.

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