저자: HamishHodder · 외국인
요약 보기
버크셔 해서웨이 현금·T-bill이 1440억달러에서 1030억달러로 줄었고, 주된 원인은 약 510억달러 주식 매입과 100억달러 매도, 자사주 매입 32억달러이다. 현금 감소 요인: 영업현금흐름 68억달러 유입, 주식 매입 510억달러, 주식 매도 100억달러, 자사주 매입 32억달러. 13F 보고서 전까지 개별 종목 매수 내역은 확인 불가. 매입 추정 내역: Allegheny 인수 113억달러(현금 지출은 다음 분기 예상), HP 약 10% 지분 매입(약 44억달러, 1분기 중 대부분 매입 추정), Activision 약 9.5% 지분 확대(약 47억달러 추정, 마이크로소프트 인수 합병 차익거래 성격), Chevron 지분 증가(45억달러에서 259억달러로 평가액 증가, 140~190억달러 매입 추정), Occidental 지분 약 14% 확보(워런트 전환 약 70억달러 추정), Apple 지분 약 10~20억달러 추가 매입 추정. 주가 방향 예측 발언은 없고 해당 자산의 1~3개월 방향에 대한 명시적 주장도 없다. 화자는 워런 버핏 발언을 인용하며 투기보다 장기 투자의 이점을 강조하고 있다. 출연자 전망: 특정 종목에 대한 단기 방향 전망은 제시되지 않음. 13F 공시 예정일(5월 14~15일 전후)을 주목하라는 언급이 있음. 리스크로는 Activision 인수 거래의 승인 여부와 반독점 심사를 언급.
다듬은 글
While attending the Berkshire Hathaway annual meeting this weekend, Warren Buffett dropped an absolute bomb on us cash and us treasury bills in Berkshire had fallen from 144 billion to 103 billion after increasing every year for many years. And this was primarily caused by a significant amount of cash spent on us equities, 52 billion purchased and 10 billion sold.
And while we don't have a 13 F filing that will ultimately give us a detailed view of what Berkshire and Warren. Spending money on during the last quarter, Buffett spoke about some of the different purchases during the annual meeting. So we do have a pretty good idea about what he bought and in some cases how much in today's video, I'm simply going to be breaking down.
Some of the purchases made by Warren Buffett and Berkshire Hathaway during the latest quarter, with the help of some clips from the Berkshire Hathaway annual. Just before we get into today's video, I do want to give a quick shout out to today's sponsor, which is share site a portfolio tracking software that you can use to keep track of your stock portfolio gains, as well as track all kinds of things in regards to your performance of your portfolio diversification.
And when it comes to tax time, share site allows you to automatically bring in all of your past trades by connecting your. Or you can do it manually or using XL. And once you do, you'll be able to accurately track all of the different types of gains that your portfolio will experience, including currency gains, which most people are not accurately tracking share site gives you access to 12 different reports that can be used to track performance as.
Used when it comes to tax time. One of my favorites at the moment is the diversity report, which can of course be used to see how your portfolio breaks down in terms of different industries and sectors, but also for a value investor like myself. It allows me to get an insight into how much of my portfolio is concentrated in individual businesses.
At the moment, you can try share site for freight and track up to 10 holdings for as long as you want. So if you haven't tried share site, it's completely free. Go ahead and check. Also, if you want to sign up to a paid plan for more features, there's a starter investor and expert plan. And if you use my link, it's the first link in the description below, you will get four months of an annual subscription, which is a massive saving, but at the very least go and check out the free plan and try it for as long as you want.
You might've noticed, but I'm not in my typical setup. And that's because I'm here in. Attending the Berkshire Hathaway annual meeting. And that's exactly what we did just yesterday by far, the biggest story out of the meeting was the huge decrease in cash during the period cash and treasury bills decreased from 144 billion to $103 billion.
When thinking about cash for Berkshire Hathaway and. Businesses. We include us treasury bills and that's because they act in a very, very similar way to cash, except with an interest payment attached to them. Us treasury bills are short-term fixed income securities that are issued by the U S government.
They have a maturity that can go from just a few days, all the way up to a year. And since the U S is very unlikely to default or not pay. Bills. They act very, very similarly to cash. There are many things that could change the cash position in a business, things like the operations of the business, how much they spend on capital expenditure or on property and buildings, uh, what investments or acquisitions they might make.
And whether they pay dividends or do Sherry purchases for Berkshire, we're just going to focus on some of the biggest impact is to their cash position. Firstly, their business operations generated $6.8 billion of operating cash flow, which obviously contributed to an increase in their cash position.
During the period, they spent 51 billion. Equity securities or stocks, they sold $10 billion worth of equities. And then the last big contributor was they spent $3.2 billion on what's called acquisition of treasury stock, which is a fancy way of saying it. Share repurchases clearly the biggest contributor to why cash went down by about $40 billion.
Was that they spent over $50 billion on equity securities, but can we see exactly what and how much Berkshire I spent on particular stocks? No, we can't. In fact, those details are included in the quarterly 13 F filing, which is a filing that institutional investors with over $100 million in assets under management have to make, and they can make the filing up to 45 days after the quarter ends.
So it's likely we will see this come out for Berkshire. Probably on the 14th or 15th of May. Fortunately we do have some details on which stocks were bought. Thanks to Warren Buffett, sharing some details during the Berkshire Hathaway annual meeting. Let's first talk about some of the purchases that Berkshire made during the quarter that we already knew a little bit of information about.
And then we'll jump into some that were revealed during the annual meeting in March, it was announced that agony insurance is being acquired by Berkshire for $11.6 billion. The business is New York based and provides primary. Business insurance. It's a business that Buffett said he's been observing for over 60 years, which is kind of astounding and it fits quite nicely alongside Berkshire's.
Other insurance operations in the meeting buffet explained the deal, which came just a week after Monga expressed frustration about not being able to find larger deals. His question is what changed from the time you dated the letter to the time the investments were announced that the name suddenly become interesting in the space of a month and a half or half a month.
Well, John, do you want to give your version? I'll get my version. Oh, my word is my baby. We found some things we refer to owning to treasury bills. And as usual Charlie's given the total answer, but I'll talk longer and say less letters dated February 26th, where we were confessing our inability to find anything.
Uh, which was a Saturday, but the day before that I got a email, uh, there was a, a note, uh, just a few lines long from, uh, follow that. And he said, uh, uh, he now become CEO of Allegheny Corp. I'd been following Allegheny Corp for 60 years. I know. And read their annual reports. I had four big file drawers full of it.
There's an interesting company, but otherwise, if that email hadn't been sent, we. I'll prefer all again. So, but that explains the 11 billion. Now this is a massive acquisition, but it's actually not included in the 51 billion that they reported on their cashflow statement as being spent on securities.
And that's for two reasons. One is that it's an acquisition. So it would very likely. On the acquisition line in the investing activity section, rather than within the equity security section and to the deal actually hasn't closed. So it's very unlikely that Berkshire has actually outlaid any cash for this investment, meaning it's very likely we will.
The decline, 11.6 billion in cash in the next quarter, then we have their investment in HP. On the 6th of April, HP filed an sec form for filing that showed Berkshire Hathaway had acquired more than 10% of the stock. And within the filing, it actually showed that Berkshire has surpassed 10% on April 1st.
So it is very, very likely that the vast majority, if not all of this investment was made. During the first quarter, the total investment, which is now 121 million shares of HPQ is worth about $4.4 billion. But just looking at the pace that was likely purchased during the first quarter, from January to the end of March, it looks like they probably spent a.
$4 billion on their HP investment. Then there were a number of investments that were actually brought up for the first time during the meeting. The first was the significant increase that they made to their Activision investments. Originally, one of the other managers at Berkshire bought 15 million shares of activity.
Then a few weeks later in January, Microsoft announced that they will be acquiring Activision for $68 billion, but there's actually a huge update to this investment. During the meeting, buffet describes how the trade had become what he calls a workout or a risky arbitrage. You should make a little little chair.
So, uh, one of the things we bought, one things I bought, it was bought for different purpose by a different manager of months earlier, he bought. Um, roughly 15 million shares of Activision. And I never paid, I knew about the company, but I would just see it at the monthly report. But then on January, I dunno, 17th or 18th, something like that.
Microsoft announced they were going to buy Activision for $95 a share. Now, when they announced that at that point, Activision become. A different kind of security. It becomes what Charlie and I used to call a Walton. Everybody doesn't 50 years ago, uh, we call them workouts or something like that. And they become known as arbitrage.
Well, they're not really arbitrage, but they're they're securities are those cases of common stock whose. The value depends not on what the market price does, but whether a given corporate event occurs and announced corporate event occurs well, Microsoft wants to buy Activision will say, well, they said at $95 a share and they've got the money and obviously mergers and big mergers tech companies, all kinds of.
I've got all kinds of problems, uh, when the world generally, in terms of opinion, so you don't know what the justice department will do, or you don't know what they eat, who will do and all kinds of. But at that point, it becomes a different security. Essentially the value of the stock is dependent on whether a specific corporate event occurs in this case.
If the business is sold to Microsoft for $95 per share, then Berkshire will. And if it falls, then it's very likely that the stock will fall as well. We also know it's likely that buffet was buying around 79 to $80 per share. And this is because in the meeting, he said that the spread was too thin when the announcement was made, but that a few days later it did become attractive and don't even have to stock, which had been in the sixties, uh, uh, went up to the 8 81 or two, and that looked like.
Not a big enough spread to me for a few days and then it settled back a little. So anyway, we now own a nine and a half percent, none, something like nine and a half percent. Of Activision from that clip. We also know that Berkshire owns about 9.5% of the shares and that the buying was done by Buffett himself only 9.5% of the stock means that they increased their initial investment, which was about 15 million shares to about 74 million shares.
And if we assume an average price of about $79 per share, then there. Probably around $4.7 billion. Next we have a big one. This was the biggest investment that they made during the quarter. And that was in Chevron. In this case, we found out about the Chevron investment during the quarterly earnings that were released just before the meeting.
As you can see, Chevron became the fourth largest position in their stock portfolio, reaching a value of $25.9 billion. Chevron stock did increase by about 40% during the quarter, but the Berkshire investment. By about five fold from $4.5 billion to $25.9 billion. Again, we don't know the exact amount that they invested because we don't know when, during the quarter that they made the investment.
However, we do know that it's very likely that they put into the investment about 14 to $19 billion, which by far makes. The biggest investment that Berkshire made in an individual business during the quarter alongside Chevron was an investment in Occidental petroleum. And again, during the meeting buffet spoke about this investment and they make a lot more money when people are gambling than when they're investing.
It's much better to have somebody that's going to trade 20 times a day and got all excited about just like pain, but we handle all the slot machine, you know, that's who you. Yeah. You may not say that you want that person. You'd like the other kind of person to maybe, but that's where you make the money and the degree to which the market got dominated by that is showing on a, on a slide, some hair somewhere that shows, oh, we bought, well, we bought in two weeks, uh, thereby.
14%. I'm Occidental petroleum in that clip, you can hear that he was able to acquire a 14% stake in Occidental during the quarter. According to Forbes at Berkshire already had about 84 million warrants of Occidental stock that they acquired in 2019 as a part of another deal. And considering that the stock price for Occidental is very similar today or during the quarter, then it was back in 2019.
Uh, Berkshire may have spent up to $7 billion on converting those warrants into shares and essentially acquiring a significant ownership in Occidental petroleum. And then finally we have apple stock, which was another one that was mentioned during the meeting, but was very, very brief, you know, in the first quarter they just reported, uh, they're on a fiscal year, but they just reported their March quarter and they're in more money and they have.
Fewer shares outstanding. And we actually bought a little more apple, uh, And the first quarter or so we decided we wanted a greater interest and to beyond Buffett briefly mentioning that they invested more money into apple. During the annual meeting. If we look at the quarterly filing, we can also see pretty accurately how much they invested into apple.
Their apple stake decreased from $161 billion to 159 billion during the quarter. But the stock fell about 2%, which means that Berkshire increased their investment in. By about one to $2 billion with some very, and I should stress very rough estimates of some of these investments. We get to about 35 to $40 billion that are accounted for out of the 50 billion that we can see on the cashflow statement.
So there's about 10 to 15 billion. I still unaccounted for it's entirely possible that this unaccounted for part is the Allegheny investment, but we really won't know for sure until we see the 13 filing. And there's also a $10 billion sale of shares that were not mentioned during the meeting at all.
And that we have no record of during the quarterly filing. So again, we'll have to wait for the 13 year filing to see what it is exactly that they sold. To a significant extent during the quarter. I hope you guys enjoyed today's video. And if you want to stay up to date with content that I'm posting around Berkshire and other content in the future, the make sure you hit that subscribe button. But with that said, hope you guys have a great day. I'll see you in the.
Comments 0