Berkshire Hathaway by Warren Buffett
has disclosed sizeable holdings in
in late 2020, after he was previously allowed to keep those shares undisclosed.
Berkshire (ticker: BRK.B) had 146.7 million Verizon (VZ) shares worth $ 8.6 billion at the end of 2020 and 48.5 million Chevron (CVX) shares worth $ 4.1 billion , according to a regulatory filing Tuesday.
Verizon’s stake has risen sharply since the end of the third quarter, when Berkshire owned 58.4 million Verizon shares worth $ 3.4 billion. Chevron’s stake increased more modestly in the fourth quarter, from $ 44.3 million at the end of the third quarter. These were disclosed in a 13-F filing for the end of the third quarter and an amended 13-F for the end of the third quarter.
The Verizon and Chevron purchases were likely orchestrated by Buffett, the chief executive, who oversees the company’s huge stock portfolio.
Berkshire requested and received confidentiality from the U.S. Securities and Exchange Commission for the Chevron and Verizon holdings at the end of the third quarter, presumably because it was continuing to build positions in those shares in the fourth quarter and did not want the share to be made public. disclosure in mid-November to interrupt their accumulation of both stocks.
Berkshire also obtained confidentiality at the end of the third quarter for a $ 386 million stake.
Marsh and McLennan
(MMC) which grew to $ 499 million at the end of the fourth quarter.
The disclosures solve the mystery of Berkshire’s confidential purchases that sparked speculation about which stock Buffett was buying. Many investors assumed it was one stock, not two major purchases.
Barron wrote earlier Tuesday that the mystery holding was likely a commercial or industrial venture based on the Berkshire filings and that Chevron was a possibility.
Chevron rose about 2% in after-hours trading to $ 95 on news of Berkshire’s tenure; the stock ended Tuesday’s regular session at $ 93.13. Verizon was up almost 3% after business hours, to $ 55.70, after ending at $ 54.15.
Both purchases are in accordance with Buffett’s value guidance. Verizon has a low-valuation listing of about 10 times estimated earnings for 2021 and returns 4.6%. It has lagged behind the S&P 500 in recent years and is down 7% last year, while the index is up 16%.
Chevron has recovered from its lows of last spring as oil prices have rebounded, but they are still 17% below last year. The company is considered the strongest of the world’s major energy companies, with a better balance sheet than its rival.
(XOM) and big European rivals like
Royal Dutch Shell
(RDS.A). Chevron’s dividend yield is 5.6% and that payment is seen as increasingly secure with rising oil prices.
Berkshire also reduced its stake in
(AAPL) to 887.2 million shares, according to Tuesday’s filing.
Write to Andrew Bary at [email protected]