According to reports from The Economic Times, Donald Trump bought between $1 million and $5 million of Berkshire Hathaway shares on June 18 and then sold a smaller amount on June 24, marking one of the most significant portfolio rejig out of his more than 1,000 securities trades in June. This investment comes as Trump continues to maintain his substantial portfolio of over 1,000 securities, with the Berkshire purchase representing a notable addition to his holdings.
As reported by The Economic Times, Greg Abel, the new Berkshire Hathaway CEO, has started using some of the company's record cash pile. The firm spent around $4.5 billion to buy back its own shares during the April-June quarter and purchased nearly $20 billion worth of equities during the period. Among its purchases was about $10 billion of additional Alphabet stock, the parent company of Google and YouTube, making it one of Berkshire's largest equity holdings. Berkshire ended June with $364.7 billion in cash and cash equivalents, down from a record $380.2 billion three months earlier. The company also said it spent $6.8 billion in late July to acquire shares of homebuilder Taylor Morrison.
According to Morningstar, Berkshire Hathaway's track record "has gotten thinner over the years" following Warren Buffett's departure as CEO. The investment research firm has assigned Berkshire a "Narrow" Economic Moat and an Uncertainty Rating of "Low" on the shares. Morningstar noted that while Berkshire's operating businesses continue to provide competitive advantages, particularly its insurance operations that generate low-cost float, the company has experienced "slippage in some of the moat sources" supporting several of its main businesses. The firm held $299.3 billion in 13F-reportable equity securities at the end of June, excluding foreign holdings, with total stock holdings reaching $344.3 billion when including those investments.
Berkshire recorded $23.5 billion in purchases and $3.7 billion in sales during the second quarter, resulting in $19.8 billion in net purchases. The company sold 30.2 million Bank of America shares for an estimated $1.6 billion, along with positions in Lennar Corp. Class A, Capital One Financial Corp., and Kroger Co. Meanwhile, Berkshire purchased 24.5 million Alphabet Inc. Class A shares worth about $7.9 billion and 23.6 million Alphabet Class C shares worth about $7.6 billion. The firm also bought 17.5 million Delta Air Lines shares and 12.4 million Lennar Class B shares. On Stocktwits, retail sentiment around BRK.A stock was 'bearish' amid 'low' message volumes, while BRK.B sentiment was 'neutral' amid 'high' message volumes.
