Warren Buffett (Trades, Portfolio)'s $486 billion conglomerate Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) revealed its second-quarter portfolio changes on Thursday, showing that its portfolio managers took little investment action beyond building its Amazon.com Inc. (NASDAQ:AMZN) position.
Buffett, or one of his portfolio managers, Ted Weschler and Todd Combs, also added to the company's stakes in Bank of America Corp. (NYSE:BAC), US Bancorp (NYSE:USB) and Red Hat Inc. (NYSE:RHT). Berkshire had plenty of cash to deploy on common stocks, with $122.4 billion on its balance sheet at the quarter's end.
The portfolio was valued at $208.10 billion, with 47 holdings listed. Almost half of the portfolio was invested in financial services stocks at 47.18%, while technology encompasses 25.71% and consumer defensive 15.23%.
During the quarter, it shed one stock, USG Corp. (NYSE:USG), which Buffett bought nearly two decades ago. The sheetrock maker filed for bankruptcy in 2006 in response to lawsuits related to its use of asbestos. In April, it closed a deal to be acquired by Gebr Knauf KG, a German manufacturer of building materials, which Buffett supported.
Buffett's sole other sale was Charter Communications Inc. (NASDAQ:CHTR), which it reduced by 4.97%.
At second quarter-end, Buffett's five largest holdings, accounting for more than half of the portfolio, were: Apple (NASDAQ:AAPL), Bank of America Corp. (NYSE:BAC), Coca-Cola Co. (NYSE:KO), Wells Fargo & Co. (WFC) and American Express Co. (AXP).
Berkshire boosted its Amazon holding by 54,300 shares, or 11.17%, to 537,300 shares. The holding totaled 0.49% of the portfolio. Berkshire started a position in the company in the first quarter when the price averaged $1,661; in the second quarter, the price averaged $1,862.
Amazon.com Inc. has a market cap of $878.57 billion; its shares were traded around $1,776.12 Thursday with a price-earnings ratio of 73.71 and price-sales ratio of 3.55. Amazon.com Inc. had an annual average earnings growth of 33.80% over the past 10 years. GuruFocus rated Amazon.com Inc. the business predictability rank of 4-star.
Bank of America (NYSE:BAC)
Berkshire acquired 31,081,000 shares of Bank of America, increasing the position by 3.47% to 927,248,600. The holding represented 12.92% of the portfolio. Bank of America traded for $29 on average during the second quarter.
Bank of America Corp. has a market cap of $244.34 billion; its shares were traded around $26.25 Thursday with a price-earnings ratio of 9.40 and price-sales ratio of 2.84. The trailing 12-month dividend yield of Bank of America Corp. is 2.29%. The forward dividend yield of Bank of America Corp. stocks is 2.73%.
US Bancorp (NYSE:USB)
Berkshire purchased 3,150,787 shares of US Bancorp, increasing the position by 2.44% to 132,459,618 shares. The holding represented 3.34%. The stock's second-quarter price averaged $52.
US Bancorp has a market cap of $80.81 billion; its shares were traded around $51.28 Thursday with a price-earnings ratio of 12.06 and price-sales ratio of 3.63. The trailing 12-month dividend yield of Us Bancorp stocks is 2.89%. The forward dividend yield of US Bancorp is 2.91%.
Red Hat Inc. (NYSE:RHT)
Berkshire purchased 61,419 shares of Red Hat Inc., increasing the position by 1.2% to 5,171,890 shares. The position was 0.47% of the portfolio. The stock's second-quarter share price averaged $185.
Red Hat Inc. has a market cap of $33.43 billion; its shares were traded around $187.71 Thursday with a price-earnings ratio of 75.69 and price-sales ratio of 10. Red Hat Inc. had an annual average earnings growth of 16.50% over the past 10 years. GuruFocus rated Red Hat Inc. the business predictability rank of 5-star.
See Warren Buffett (Trades, Portfolio)'s portfolio here.
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