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Wednesday, August 15, 2012

Buffet’s Berkshire Rejigs Portfolio in an Active Quarter – IBM, WFC, PG, KFT, NOV, GE, USB, JNJ


Those who follow Warren Buffet's investing tactics can take some tips from here. Buffet's Berkshire Hathaway Inc. (BRKA, BRKB) has raised its holdings in International Business Machines Corp.(NYSE:IBM ) and Wells Fargo & Company(NYSE:WFC)), while it has cut its stake in companies such as Kraft Foods Inc(NASDAQ:KFT) and The Procter & Gamble Company(NYSE:PG), regulatory flings showed.

The investment arm Buffet has also invested newly in oil field equipment maker National-Oilwell Varco, Inc.(NYSE:NOV), the filing showed.

Get Complete List of Buffet’s Holding Here

Buffet buys and holds shares for the long term, a key component in his investing strategy that has made him among the world's richest men.

Berkshire cuts its stake in P&G nearly 20 percent to about 60 million shares that are worth around $4 billion now. Incidentally Buffet's stake sale coincides with the company’s declining market share.

In Kraft, Berkshire's stake dropped 25 percent to about 59 million shares valued at about $2.4 billion. The food giant is nearing the end of an exercise to splitting itself up into two entities - a global snacks company and a North American grocery business. On Tuesday, its board approved a spin-off of its grocery business that is scheduled to occur Oct. 1.

Buffet has also reduced stakes in Johnson & Johnson(NYSE:JNJ), U.S. Bancorp(NYSE:USB) and General Electric Co. (GE), among others.

Shares of J&J are trading at multi-year highs despite a series of product recalls and legal settlements. The company's pharmaceutical unit has however been successful in bringing new drugs to the market and recovered from patent expirations for older drugs.

Berkshire's new stake in National Oilwell National-Oilwell Varco, Inc.(NYSE:NOV), of about 2.8 million shares, was worth about $217 million at the close of trading Tuesday. Analysts see it as more of a stock pick by new portfolio managers Todd Combs and Ted Weschler.

Find Out The Success Rate of Buffet’s Berkshire Here

Berkshire's total U.S. stock investments were worth $74.3 billion at the end of the second quarter, down slightly from the $75.3 billion reported a quarter earlier.

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