(Reuters) – Warren Buffett's Berkshire Hathaway Inc. announced two major new investments on Tuesday, revealing $ 8.6 billion in Verizon Communications Inc. and $ 4.1 billion in oil company Chevron Corp.
The investments were revealed in a statutory application describing Berkshire's US listed shareholdings as of December 31.
Berkshire also unveiled a new $ 499 million stake in Marsh & McLennan Cos.
To make room, Berkshire reduced its investments in several companies. including Apple Inc., but at about $ 121 billion, the iPhone maker is by far its largest ordinary shareholder.
Verizon shares rose 3.0%, Chevron rose 2.2% and Marsh remained unchanged after the Berkshire filing. [1
"They are Buffett investments," says Steven Check, who is investing $ 1.3 billion in Check Capital Management Inc. in Costa Mesa, California, including $ 300 million in Berkshire. . "Verizon has a low price-to-earnings ratio, and while oil prices are recovering, inventories still have a long way to go."
The documentation also shows that Berkshire uses part of its cash, which totaled $ 145.7 billion per September. 30.
Berkshire owns more than 90 companies including Geico Car Insurance, BNSF Rail and Dairy Queen Ice Cream, but has been five years since its most recent major acquisition.
The Omaha, Nebraska – based conglomerate had begun investing in Verizon, Chevron and Marsh through the third quarter of last year.
As it had done several times before, Berkshire received permission from the US Securities and Exchange Commission to delay the disclosure of the bets, to avoid investors having a piggyback on their bets before it was ready to buy
Tuesday's filing showed that Berkshire , a major investor in Bank of America Corp., cut back on other banks, reducing its stake in Wells Fargo & Co. and dismissed JPMorgan Chase & Co., M&T Bank Corp. and PNC Financial Service. s Group Inc.
Berkshire also invested more in pharmaceutical manufacturers Abbvie Inc., Bristol-Myers Squibb Co. and Merck & Co. while selling a small stake in COVID-19 vaccine maker Pfizer Inc. It also threw mining company Barrick Gold Corp
Doug Kass, managing partner of Seabreeze Capital Investment Inc. in Palm Beach, Florida, said the Verizon investment "is makes sense ", which reflects the company's dividend and the prospects for wireless revenue development. reflects Mr Buffett's concerns about persistently low interest rates and credit losses related to the coronavirus.
Berkshire is expected to publish year-end report results and Mr. Buffett's annual shareholder letter on February 27. Catalog