Berkshire Buys Exxon, Nestle, Republic Services, & Travelers Stock

[scimonoce]

Berkshire disclosed its equity holdings. Here's a Bloomberg article summarizing the major changes:

 

http://www.bloomberg.com/apps/news?pid=conewsstory&tkr=BRK%2FA%3AUS&sid=aEb7e45xV9HE

 

 

[basl1]

Berkshire is selling conocco phillips and buying exon. Is this smart?

[benhacker]

Exxon is an $88m stake for a $160B company....  I would guess its likely Lou Simpson's position, whereas Conoco was Buffett's...

 

Check the 13HR, the XOM holding is not under GEICO.  There is no need to speculate on which part of Berkshire owns what, it is all disclosed in the filing (assuming they don't do any funky accounting /location stuff with the holdings which I doubt they do).

 

See http://sec.gov/Archives/edgar/data/1067983/000095012309063028/v54313e13fvhr.txt and note the "other managers" column.

 

Exxon is listed under 4, 14, and 17:

 

NO.  FORM 13F FILE NUMBER  NAME

---  --------------------  -------------------------------------------------

4.  28-554                Buffett, Warren E.

14.  28-718                National Indemnity Co.

17.  28-717                OBH Inc.

 

Not under 9, or 10 (GEICO) or 19-21 (Wesco).

 

Ben

[txlaw]

Buffett probably would have added to COP if he couldn't take advantage of the tax code by selling COP and replacing with XOM.

 

From the latest 10-Q:

 

Other-than-temporary impairments (“OTTI”) of investments in 2009 predominantly relate to a first quarter OTTI charge with respect to Berkshire’s investment in ConocoPhillips common stock. The market price of ConocoPhillips shares declined sharply over the last half of 2008. Over the first nine months of 2009, Berkshire sold approximately 27.5 million shares of ConocoPhillips. Although Berkshire expects the market price for ConocoPhillips shares to increase over time to levels that exceed original cost, Berkshire may sell additional shares before the price fully recovers. Sales in 2009 were or may be in anticipation of other investment opportunities, to increase overall liquidity and to realize capital losses that can be carried back to prior years for income tax purposes. Capital losses can be carried back three years and carried forward five years for federal income tax purposes. Income taxes of approximately $690 million were paid on capital gains in 2006 and will be fully recoverable if capital losses of at least $1.98 billion are generated by the end of 2009. Since a significant portion of the decline in the market value of Berkshire’s investment in ConocoPhillips occurred during the last half of 2008, a significant portion of the other-than-temporary impairment losses recorded in earnings in the first quarter of 2009 was recognized in other comprehensive income as of December 31, 2008.

 

WEB's thesis on energy, particularly with respect to oil, remains intact so he is putting money into Exxon to replace the COP he has sold.  I'm a fan of both XOM and COP, though COP is probably more undervalued.

[basl1]

:o Now that makes a lot more sense. Does the 10Q say anything about Moody's selling?

[txlaw]

:o Now that makes a lot more sense. Does the 10Q say anything about Moody's selling?

 

It doesn't say anything that explains the rationale, though I'm pretty sure he's selling because the intangible assets underlying Moody's business model might potentially be permanently impaired.

[basl1]

Can anyone tell from the filing the price points he bought these companies at, esp wells fargo and wallmart?