In a regulatory filing detailing its U.S.-listed investments as of June 30, Berkshire also disclosed a new 20.9 million share investment worth $563.6 million in Toronto-based Barrick Gold Corp (ABX.TO), one of the world’s largest mining companies.
Berkshire Shed Wells Fargo Shares
Investors monitor Omaha, Nebraska-based Berkshire’s quarterly filings to see where Buffett and his portfolio managers Todd Combs and Ted Weschler see value.
Shares of Barrick have benefited from rising gold prices, which set a record last week, and rose 3.2% in after-hours trading following Berkshire’s disclosure. Barrick did not immediately respond to a request for comment.
Berkshire reduced its Wells Fargo stake by 26% in the quarter to 237.6 million shares.
Wells Fargo & Company is an American multinational financial services company headquartered in San Francisco, California, with central offices throughout the United States. It is the world’s fourth-largest bank by market capitalization and the fourth largest bank in the US by total assets.
Since early 2018, Berkshire has shed more than half of its Wells Fargo shares, which were once worth $32 billion but lost value as the bank was hurt by scandals for mistreating customers. Buffett first invested in Wells Fargo in 1989.
Huge Cut In Stakes Of JP Morgan
JPMorgan Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York City. JPMorgan Chase is ranked by S&P Global as the largest bank in the United States and the seventh largest bank in the world by total assets, with total assets of US$2.687 trillion.
Berkshire also reduced by 62% its stake in JPMorgan, where Combs is a director, to 22.2 million shares, and shed its remaining 1.9 million Goldman shares.
Buffett has not given up on the banking industry, after telling investors in May that banks were well-capitalized and capable of weathering the coronavirus pandemic.
Berkshire still invests in several banks including Bank of America Corp (BAC.N), where in the last month it invested more than $2 billion, giving it an 11.9% stake worth more than $27 billion.
In Friday’s filing, Berkshire said it also exited its investment in Toronto-based Restaurant Brands International Inc (QSR.TO), the parent of Burger King and Tim Hortons.
Berkshire also has more than 90 operating units including the Geico car insurer, BNSF railroad and Dairy Queen ice cream.
Berkshire Loads Stocks Of Barrick Gold
Warren Buffett made some notable investment changes in the second quarter.
Buffett’s Berkshire Hathaway (ticker: BRKb) slashed its position in JPMorgan Chase (ticker: JPM), exited investments in Occidental Petroleum (OXY) and Goldman Sachs, and bought more Kroger (KR) stock, and initiated a position in Barrick Gold (GOLD). Berkshire Hathaway disclosed the trades, among others in a form it filed with the Securities and Exchange Commission.
Meanwhile, the investment firm acquired nearly 21 million shares of Barrick Gold worth $563 million, representing 0.3% of Berkshire’s holding. Berkshire also reduced its holding in PNC Financial Services (PNC), selling 3.85 million shares to cut its position to 0.3% from 0.5%.