Warren Buffett’s Berkshire Hathaway will file its second-quarter 13F soon, revealing they were net sellers of equities, with sales of $6.9 billion offset by $3.9 billion in purchases. The second quarter included a stock market selloff, potentially offering more buying opportunities for Berkshire. Buffett’s stock picks are eagerly awaited.
Berkshire Hathaway did not initiate any new 10%+ stakes in the second quarter but may have continued adding to existing positions. Recent filings show Berkshire bought more shares of Sirius XM. The company’s second-quarter 13F will reveal additional details about Berkshire’s trading activity.
Berkshire sold off more of its stake in DaVita in the second quarter and may have scaled back other holdings as well. One certainty is the reduction in the position in VeriSign. Details of these sales will be disclosed in the upcoming 13F filing.
Occidental Petroleum and Kraft Heinz are two attractive stocks in Berkshire’s portfolio. Occidental is trading 28% below its fair value estimate of $59, with Berkshire owning 27% of the company. Kraft Heinz, despite a recent write-down, is considered a bargain, with shares trading at a 47% discount to their fair value of $51.
Occidental Petroleum is one of the world’s largest independent oil and gas producers with operations in the US, Middle East, and North Africa. The company is making strategic acquisitions to enhance its production capacity and operating efficiencies. Occidental’s focus on carbon capture projects sets it apart from competitors.
Kraft Heinz, known for its packaged foods, is considering a potential split to unlock higher value. The company has been focusing on cost savings and brand spending to drive long-term growth. Despite challenges in the consumer market, Kraft Heinz is positioned for steady growth and value appreciation.
A potential split of Kraft Heinz could separate its brands into high-growth and commoditized segments. The company’s focus on cost savings and brand spending should support top-line growth. While a split may not result in significant value appreciation, it could drive operational efficiencies and strategic focus.
Read more at Morningstar: 2 Warren Buffett Stocks to Watch Before Berkshire Hathaway’s Next Filing