- (0:30) – 13 F: The Impact Of The Coronavirus Sell Off
- (3:10) – What Moves Did Warren Buffett Make?
- (11:05) – Adding Diversification To Your Portfolio: Is It A Good Time For Commodities?
- (21:00) – Episode Roundup: AAL, LUV, DAL, UAL, QSR, OXY, GS, GOLD, JPM, WFC, BK, USB, MTB, BAC
- [email protected]
Welcome to Episode #202 of the Value Investor Podcast
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
The 13-Fs for the second quarter are finally in and Berkshire Hathaway’s filing tells the tale of what Warren Buffett and his lieutenants were doing with the portfolio during one of the most volatile quarters of the last decade.
A Gold Miner for Buffett?
First, Buffett shocked value investors everywhere by buying shares in Barrick Gold GOLD, a large cap gold miner.
Buffett has spoken out against gold in the past.
No one saw this one coming.
But it might not be that big of a deal, once you dig down into the why and how around the purchase.
Should value investors be taking another look at gold stocks?
Shuffling the Financials
The more interesting trades were in what was sold from the portfolio.
Berkshire sold out of its entire position in Goldman Sachs GS, which was already small to begin with, but it’s been in the portfolio since 2013.
He also reduced his holdings in Wells Fargo WFC, which used to be among his favorite banks and which has been in the portfolio since 2001, by 26%. The sale reduced the weight of the holding in the portfolio from 5.28% to just 3%.
Similarly, he sold shares of JPMorgan Chase JPM, which was only added in 2018. The sale reduced JPMorgan’s position in the portfolio from nearly 3% to just 1%.
Still Believes in Bank of America
Bank of America BAC remains one of his top holdings, however, at 10.85% of the portfolio.
He also reduced his shares in several other banks in the portfolio.
The financials have been anywhere from 40% to 55% of the portfolio the last few years.
What statement were these sales making for value investors?
Find out the answer to this, and more, on this week’s podcast.
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