Berkshire Hathaway has recently adjusted its equity positions, according to a filing with the Securities and Exchange Commission. The conglomerate has taken new positions in the homebuilding industry, while also making changes to its existing holdings.
Reduction in General Motors Stake
In the second quarter, Berkshire Hathaway decreased its stake in General Motors (GM) by 45%, bringing it down to 22 million shares. With a current valuation of approximately $750 million, the investment in GM has not been as profitable as expected. Berkshire had acquired the shares almost a decade ago for around $30 each, while the current trading price hovers around $34 per share. It is believed that this investment decision was made by one of Berkshire's investment lieutenants, Todd Weschler or Todd Combs, rather than CEO Warren Buffett himself. Buffett has generally been less interested in the highly competitive auto industry.
New Homebuilding Positions
On the other hand, Berkshire Hathaway has shown a preference for the homebuilding industry. The company has acquired about 6 million shares of D.R. Horton (DHI), the largest homebuilder in the country. This investment is now valued at over $700 million. In addition to D.R. Horton, Berkshire has also taken smaller positions in homebuilders Lennar (LEN) and NVR (NVR), with valuations of less than $20 million and around $70 million respectively. These new positions are in line with Berkshire's existing housing-related businesses, such as Clayton Homes, Shaw (a carpeting and flooring manufacturer), and Benjamin Moore (a paint company).
In terms of other changes to its equity portfolio, Berkshire increased its holding in Capital One Financial and reduced its position in Celanese.
These adjustments demonstrate Berkshire Hathaway's focus on strategic investment decisions, reflecting their interest in the homebuilding industry and their willingness to reevaluate underperforming investments.