Berkshire Hathaway (BRK.A, Financial)(BRK.B, Financial) CEO and Chairman Warren Buffett (Trades, Portfolio) said Tuesday that he did not purchase any new stocks in the second quarter but added shares of 10 holdings.
Buffett – or one of his two portfolio fellow portfolio managers, Ted Weschler and Todd Combs – made the largest increases to holdings of: Apple (AAPL, Financial), Goldman Sachs Group Inc. (GS, Financial), US Bancorp (USB, Financial), Delta Air Lines Inc. (DAL, Financial), Southwest Airlines Co. (LUV, Financial) and Bank of New York Mellon Corp. (BK, Financial).
Only two other stocks were sold out, according to the announcement, Monsanto Co. (MON) and Verisk Analytics Inc. (VRSK, Financial).
He also trimmed positions in Wells Fargo (WFC, Financial) and airlines, but made a statement about them on Berkshire’s website before the portfolio dropped:
“With a few exceptions, Berkshire wishes to avoid owning 10% or more of an investee’s shares. Since many investees are repurchasing these shares this intention sometimes requires Berkshire to make minor sales to avoid hitting the 10% threshold.
During the second quarter this self-imposed limit caused Berkshire to sell minor amounts of equity holdings in the banking and the airlines industries, while Berkshire was purchasing shares of other companies in the same industries.
These buy and sell decisions did not reflect our investment management’s views as to the relative attractiveness of the bought and sold securities but were rather a response to the 10% limitation. Similar situations may occur in future quarterly reports as Berkshire continues to have 9% plus holdings in a number of equity securities that are active repurchasers of their shares.”
Largest adds
Berkshire purchased 12,388,244 shares of Apple, increasing the position by 5.17%. The holding represented 21.27% of the portfolio at quarter-end, and the second-quarter share price averaged $181.
Apple Inc. has a market cap of $1013.08 billion; its shares were traded around $209.75 with a P/E ratio of 19.01 and P/S ratio of 4.19. The trailing 12-month dividend yield of Apple Inc. stocks is 1.29%. The forward dividend yield of Apple Inc. stocks is 1.40%. Apple Inc. had an annual average earnings growth of 34.60% over the past 10 years. GuruFocus rated Apple Inc. the business predictability rank of 2.5-star.
Goldman Sachs Group Inc. (GS, Financial)
Berkshire purchased 2,294,971 shares of the company, increasing the position by 20.94%. The holding represented 1.49% of the portfolio, and the quarter’s price averaged $239.
Goldman Sachs Group Inc. has a market cap of $86.67 billion; its shares were traded around $229.56 with a P/E ratio of 17.98 and P/S ratio of 2.80. The trailing 12-month dividend yield of Goldman Sachs Group Inc. stocks is 1.32%. The forward dividend yield of Goldman Sachs Group Inc. stocks is 1.41%.
Delta Air Lines Inc. (DAL, Financial)
Berkshire purchased 10,066,483 shares of the company, increasing the position by 18.78% to 1.61% of the portfolio. The stock’s second quarter share price averaged $53.
Delta Air Lines Inc. has a market cap of $37.86 billion; its shares were traded around $54.76 with a P/E ratio of 11.64 and P/S ratio of 0.89. The trailing 12-month dividend yield of Delta Air Lines Inc. stocks is 2.30%. The forward dividend yield of Delta Air Lines Inc. stocks is 2.58%. Delta Air Lines Inc. had an annual average earnings growth of 26.3% over the past five years.
Southwest Airlines Co. (LUV, Financial)
Berkshire purchased 8,887,943 shares of the company, increasing the position by 18.65% to 1.47% of the portfolio. The stock’s share price averaged $53.
Southwest Airlines Co. has a market cap of $33.86 billion; its shares were traded around $59.09 with a P/E ratio of 9.78 and P/S ratio of 1.65. The trailing 12-month dividend yield of Southwest Airlines Co. stocks is 0.90%. The forward dividend yield of Southwest Airlines Co. stocks is 1.09%. Southwest Airlines Co. had an annual average earnings growth of 20.10% over the past 10 years. GuruFocus rated Southwest Airlines Co. the business predictability rank of 2.5-star.
Berkshire purchased 9,846,153 shares of the company, increasing the position by 10.84% to 2.57% of the portfolio. The stock’s share price averaged $51.
US Bancorp has a market cap of $86.62 billion; its shares were traded around $53.17 with a P/E ratio of 13.92 and P/S ratio of 3.96. The trailing 12-month dividend yield of US Bancorp stocks is 2.25%. The forward dividend yield of US Bancorp stocks is 2.29%.
See Warren Buffett (Trades, Portfolio)’s portfolio here.
