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Warren Buffett's Berkshire Hathaway Further Slims Phillips 66 Position

- By James Li

Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway Inc. (NYSE:BRK.A)(NYSE:BRK.B) disclosed on Monday that the conglomerate axed 36.12% of its Phillips 66 (PSX) holding.


Having sold approximately 45 million shares during the first half of 2018, Berkshire sold 12,543,130 shares of the Houston-based oil refiner for $118.51 per share, reducing the position to 22,186,384 shares, approximately 4.8% of the company's total shares outstanding.

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Berkshire adheres to "10% limitation" rule

Buffett's conglomerate said on Aug. 13 that with a few exceptions, Berkshire "wishes to avoid owning more than 10% or more of an investee's shares." Since many investees are repurchasing company shares, the limitation may require the conglomerate to reduce its holdings to avoid hitting the 10% threshold.

During the second quarter, Berkshire trimmed its holdings of several financial services and airline companies, including Wells Fargo & Co. (WFC), American Airlines Group Inc. (AAL) and United Continental Holdings Inc. (UAL), while purchasing shares of Goldman Sachs Group Inc. (GS), Delta Air Lines Inc. (DAL), US Bancorp (USB) and Southwest Airlines Co. (LUV). The conglomerate warned that these trades do not reflect Berkshire's views of the relative attractiveness of the companies but were rather "a response to the 10% limitation."

Buffett's GuruFocus page receives new look

GuruFocus is pleased to announce it has launched a new version of the guru pages. As Figures 1 and 2 illustrate, the new guru pages contain additional features like a portfolio composition chart and a "Peter Lynch Chart" view.

Figure 1

Figure 2

We have also introduced a more interactive version of the sector weightings page as Figure 3 illustrates.

Figure 3

Disclosure: No positions.

This article first appeared on GuruFocus.