15 Stocks Warren Buffett Sold
In this article, we will discuss 15 stocks Warren Buffett sold. However, if you want to go straight to the top five stocks, you can look at the 5 Stocks Warren Buffett Sold.
Berkshire Hathaway, headed by Warren Buffett, sold $13.3 billion worth of stock in the first quarter of 2023 while investing only a fraction of that amount in US equities. This is because the market appeared unappealing to the veteran investor. Instead, the company spent $4.4 billion buying back its stock and $2.9 billion on publicly traded businesses. According to Buffett and his long-time colleague Charlie Munger, Berkshire is struggling to put its $130.6 billion cash pile to work due to high valuations.
Buffett said at the company's latest annual meeting that he expected earnings to decline in most of the company's businesses this year as the economy slows and interest rates rise.
Berkshire's stake in Apple Inc. (NASDAQ:AAPL) was valued at $151 billion at the end of the quarter, just under half the value of its entire stock portfolio. Berkshire's stock has risen 4.9% since the start of the year. At the annual shareholder meeting, Buffett reiterated his support for low-cost index funds and warned against making "stupid mistakes" that could lead to debt. He also stressed the importance of staying rational when making investment decisions. Berkshire Hathaway's vice chairman Charlie Munger emphasized the value of intelligence and advocated for more free trade with China. Buffett and Munger agreed that increased competition would make value investing more difficult.
Buffett has ramped up efforts to exit banking stocks and adjust his portfolio in the past few quarters primarily because of the Covid-19 pandemic that unbalanced the sector and led to the accelerated collapse of First Republic Bank (OTCMKTS:FRCB), Silicon Valley Bank (NASDAQ:SIVB), Signature Bank (NASDAQ:SBNY), and Silvergate Capital Corporation (NYSE:SI). In this regard, this article discusses the 15 stocks the billionaire investor sold.
Our Methodology
For this article we analyzed Buffett's 13F filings for the past 10 quarters and identified the stocks the billionaire sold during this period. Then, we calculated the returns of each stock since each it was sold out by the billionaire and compared the returns to those of SPY during the same period.
Stocks Warren Buffett Sold
15. Sirius XM Holdings Inc. (NASDAQ:SIRI)
Stock returns since Warren Buffett sold: -41.42%
SPY total return in the same period (annualized return): -7.28%
Number of Hedge Fund Holders: 26
Sirius XM Holdings Inc. (NASDAQ:SIRI) is an American audio entertainment company that offers subscription entertainment services through its Sirius XM, and Pandora and Off-platform segments. Warren Buffett sold off his holdings in the stock during the fourth quarter of 2021.
On May 3, Barrington analyst James Goss lowered his price target on Sirius XM Holdings Inc. (NASDAQ:SIRI) from $5.50 to $5 but maintained an Outperform rating on the shares after the Q1 report.
14. Liberty Global Inc. (NASDAQ:LBTY)
Stock returns since Warren Buffett sold: -33.82%
SPY total return in the same period (annualized return): -3.52%
Number of Hedge Fund Holders: 30
Liberty Global plc (NASDAQ:LBTY) provides a range of communication services to customers, including broadband internet, video, fixed-line telephony, and mobile services. In 2014 Q1, Berkshire Hathaway first acquired 7.35 million shares of Liberty Global plc (NASDAQ:LBTY). However, in 2021 Q3, Warren Buffett's fund sold all of its shares in the company.
At the end of the fourth quarter of 2022, 30 hedge funds in the database of Insider Monkey held stakes worth $566 million in Liberty Global plc (NASDAQ:LBTY), down from 31 the preceding quarter worth $440.45 million.
13. Teva Pharmaceutical Industries Limited (NYSE:TEVA)
Stock returns since Warren Buffett sold: 0.25%
SPY total return in the same period (annualized return): -13.35%
Number of Hedge Fund Holders: 31
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is a global pharmaceutical company that produces and distributes generic and specialty medicines as well as biopharmaceutical products in North America, Europe, Israel, and other parts of the world. Berkshire Hathaway, led by Warren Buffett, maintained a position in Teva Pharmaceutical Industries Limited (NYSE: TEVA) since the fourth quarter of 2017. However, in the fourth quarter of 2021, the company sold its entire stake in the pharmaceutical company.
12. Synchrony Financial (NYSE:SYF)
Stock returns since Warren Buffett sold: -4.19%
SPY total return in the same period (annualized return): 0.35%
Number of Hedge Fund Holders: 35
Buffett bought into Synchrony Financial (NYSE:SYF) in Q2 2017 when the stock was trading at around $30 per share. Synchrony provides various consumer financial services like credit cards, savings accounts, and loans. Berkshire held 17.5 million shares of Synchrony as of the end of 2020. It later sold the entire stake in Q1 2022. As of May 8, 2023, Synchrony Financial (NYSE:SYF) stock was trading at $51.23 per share, up 26% from a year ago. Synchrony Financial (NYSE:SYF) has benefited from the recovery of consumer spending and credit quality amid the pandemic.
ClearBridge Investments mentioned Synchrony Financial (NYSE:SYF) in its Q3 2022 investor letter. Here is what the fund said:
"Among the positions we exited was Synchrony Financial (NYSE:SYF) in the financials sector. Synchrony is a private-label credit card issuer that works with retailers and affinity groups. While we still believe the company is substantially undervalued, we ultimately decided to consolidate our exposure to the private credit industry in our investment in Capital One. While both companies share similar drivers, Synchrony has greater exposure to late fees, which the Consumer Finance Protection Bureau is actively focused on reducing, increasing the risk of a decline in the company's earnings."
11. Royalty Pharma PLC (NASDAQ:RPRX)
Stock returns since Warren Buffett sold: -8.4%
SPY total return in the same period (annualized return): -4.94%
Number of Hedge Fund Holders: 36
Royalty Pharma PLC (NASDAQ:RPRX) is a pharmaceutical company that does not participate directly in developing and manufacturing drugs. Instead, it buys biopharmaceutical royalties and funds for innovation in the industry. As of May 12, 2023, its stock price was $34.55, with a market capitalization of $20.98 billion. The stock has seen better days since Berkshire Hathaway's exit; it reached a 12-month high of $44.20 on Aug 12, 2022. However, it has pared much of the gains since then, declining 21.8% from the peak.
10. Organon & Co (NYSE:OGN)
Stock returns since Warren Buffett sold: -34.23%
SPY total return in the same period (annualized return): -7.69%
Number of Hedge Fund Holders: 37
Buffett's Berkshire Hathaway Inc. took a new stake in Organon & Co (NYSE:OGN), a Merck spinoff, on Aug 16, 2021. Organon primarily focuses on women's health products, particularly contraception, and it also possesses numerous brands in various other sectors. Buffett eliminated the stake in the same quarter.
In its Q3 2022 investor letter, Miller Value Partners provided the following statement regarding Organon & Co. (NYSE:OGN):
"Organon & Co. (NYSE:OGN) was the top detractor for the quarter, falling 30.0%2. Organon reported 2Q22 revenue of $1.59 billion, -0.6% Y/Y, ahead of consensus of $1.54 billion, and Adjusted EPS of $1.25, -27.3% Y/Y, in-line with analyst expectations. Adjusted EBITDA for the quarter came in at $512 million (32.3% margin), compared to 2Q21 Adjusted EBITDA of $627 million (39.3% margin). Management revised FY22 guidance for revenue of $6.1-6.3 billion, compared to previous guidance for revenue of $6.1-6.4 billion, to reflect persisting foreign exchange (FX) headwinds and Adjusted EBITDA margin of 32-34%, compared to prior guidance for a margin of 34-36%, which incorporates ~$110 million of in-process research and development (IPR&D) and milestone expenses from business development. Management's guidance implies FY22 Adjusted EBITDA of $2.05B, at the respective midpoints, or an Enterprise Value (EV)/EBITDA multiple of ~7.0x."
9. Barrick Gold Corp. (NYSE:GOLD)
Stock returns since Warren Buffett sold: -14%
SPY total return in the same period (annualized return): 11%
Number of Hedge Fund Holders: 40
Barrick Gold Corp. (NYSE:GOLD) is a mining company that produces gold and copper. It is the world's second-largest gold miner and operates in 13 countries. Berkshire Hathaway acquired a stake in the company in Q2 2020, surprising many investors who saw Buffett as a critic of gold as an investment – it acquired 20.9 million shares, worth about $564 million at the time. This boosted the share price of Barrick Gold Corp. (NYSE:GOLD) and other gold miners as gold prices reached record highs amid the COVID-19 pandemic. However, Buffett offloaded the shares in the same year, in Q4 2020, as gold prices retreated from their record highs. Since Buffett's exit, Barrick Gold's share price has fluctuated between $18.64 and $28.50 per share.
In its Q4 2022 investor letter, Old West Management provided the following statement regarding Barrick Gold Corporation (NYSE:GOLD):
"Barrick Gold Corporation (NYSE:GOLD) is the second largest gold miner in the world, with operations in the U.S., Canada, Africa, South America, and more. Barrick is also a major copper producer. Former Goldman Sachs executive John Thornton took control of the company in 2012 and quickly realized he wanted someone with a mining background to run the company. Mark Bristow, at that time CEO of Randgold, was considered one of the best gold mining executives in the world. Thornton wanted Bristow so badly Barrick bought Randgold in 2018. Bristow, who is South African, had extensive experience operating mines throughout Africa, and, in fact, would fly his own single-engine plane to visit mines. In addition, he has his Ph.D. in Geology and has flourished running Barrick for the past five years.
Barrick is estimated to have $1.6 billion of net income this year on $11.5 billion of revenue. Net Income has been growing by 15% per year. The stock trades at $19.00 per share, 16 times forward earnings, and has a 3.15% dividend yield. Barrick has a fortress balance sheet with $5.7 billion in cash and $5 billion of long-term debt, which is only one time EBITDA."
8. Axalta Coating Systems Ltd. (NYSE:AXTA)
Stock returns since Warren Buffett sold: 1.14%
SPY total return in the same period (annualized return): 3.94%
Number of Hedge Fund Holders: 45
Axalta Coating Systems Ltd. (NYSE:AXTA) produces and distributes high-performance coatings systems across several regions worldwide. The company's Q1 2023 financial results showed a 9.4% YoY increase in net sales due to improved pricing and volume growth, with improved operating margins and adjusted EBIT margins YoY
Warren Buffett began purchasing Axalta Coating Systems Ltd. (NYSE:AXTA) shares in Q2 2015 and steadily increased his stake to 13.89 million shares by Q1 2021. However, he divested his entire position in the company during Q2 2021.
7. Suncor Energy Inc (NYSE:SU)
Stock returns since Warren Buffett sold: 70.92%
SPY total return in the same period (annualized return): 10.09%
Number of Hedge Fund Holders: 47
Suncor Energy Inc (NYSE:SU) operates in the Canadian oil and gas industry. Its activities concentrate on exploration and production of oil and gas, as well as refining and marketing it to millions of customers across the globe. The company also recently entered the renewable energy sector. The Suncor Energy Inc (NYSE:SU) stock performance has been volatile since Q4 2020 (when Berkshire Hathaway exited), reflecting the fluctuations in oil prices and demand amid the COVID-19 pandemic and the OPEC+ supply cuts. The share price reached a four-year high of $41.31 on June 10, 2022, but then shed more than 40% of the gains in just three months.
Here is what Artisan Partners said about Suncor Energy Inc (NYSE:SU) in its Q4 2022 investor letter:
“Suncor Energy Inc. (NYSE:SU), a Canada-based operator of oil sands mines, refineries and retail gas stations, was the third-largest contributor to return for the year, mainly due to higher oil prices. The share price increased by one third. Notably, the portfolio generated significant returns from energy stocks, including Suncor, Tenaris, Imperial Oil and tangentially Alimentation Couche-Tarde and Seven & i Holdings, both of which are in the gas station business. Given the cyclicality and commodity nature of the oil business, we have sold shares of these investments, including the complete sale of both Tenaris and Imperial Oil.”
6. Verizon Communications Inc. (NYSE:VZ)
Stock returns since Warren Buffett sold: -15%
SPY total return in the same period (annualized return): 10.65%
Number of Hedge Fund Holders: 56
Verizon Communications Inc. (NYSE:VZ) is a major US telecom company offering wireless, broadband, video, and media services to millions of customers. It operates under two segments: Verizon Consumer Group and Verizon Business Group. Buffett bought into the company in 2020 – Berkshire bought 146.7 million shares of Verizon Communications Inc. (NYSE:VZ), valued at about $8.6 billion at the end of 2020. However, they started shedding the shares in early 2022 and finally exited in Q2 2022. Since Berkshire Hathaway's exit, the company's stock has performed poorly, falling by about 15% from May 2022 to May 2023.
Verizon Communications Inc. (NYSE:VZ) was mentioned in Mawer Investment Management's Q3 2022 investor letter with the following statement:
"There are a few other segments of our portfolios that displayed weakness in the quarter. Cable and telecommunication companies have been an area that has lagged the broader market as their worlds are increasingly colliding. Companies such as Verizon (NYSE:VZ) has been impacted as wireless operators are spending heavily to attract internet subscribers with fixed wired access and the cable companies are trying to build wireless businesses."
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Disclosure: None. 15 Stocks Warren Buffett Sold is originally published on Insider Monkey.
