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Is Berkshire Hathaway Trading in its Stock Portfolio?

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  • (0:45) - Should You Be Following Warren Buffett’s Trades?
  • (4:30) - Breaking Down Berkshire Hathaway’s Current Portfolio Positions
  • (20:10) - Episode Roundup: RH, CVX, PXD, FANG, GM, KR, OGN

Welcome to Episode #250 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.

This week, she takes a closer look at Berkshire Hathaway’s second quarter stock moves.

Berkshire Hathaway sold shares in a bunch of positions but also added to 3 older positions and added one new stock in the quarter.

There were no dramatic moves.

However, some of the stock sales were a bit perplexing if you’re a fan of Warren Buffett and his investing strategies.

The Best Time to Sell is Never

Buffett is famous for buying stocks and holding them for long periods of time. In some cases, he has held a stock for decades.

But in the second quarter of 2021, Berkshire Hathaway sold a stake in two positions that it had only first entered into the year before, in 2020.

Berkshire bought shares of AbbVie (ABBV - Free Report) , the big pharmaceutical company, in the third quarter of 2020.

It bought Chevron (CVX - Free Report) , one of the largest integrated oil companies in the United States, in the fourth quarter of 2020.

Not even a year later, it sold shares in both but still holds a position.

Chevron is now up about 15% year-to-date. AbbVie is up 18%.

Why buy and sell so quickly?

Is Berkshire Hathaway trying to market time?

Adding More to 3 Positions

Berkshire bought RH (RH - Free Report) for the first time in the third quarter of 2019. It added to its position again in the second quarter of 2021 and is now one of the largest shareholders of the luxury furniture maker.

It also added to its stake in insurance giant AON (AON - Free Report) and bought more in supermarket retailer Kroger (KR - Free Report) .

Berkshire is now one of the largest shareholders of Kroger.

What can value investors learn from Berkshire’s moves as the major stock indexes continued to hit new highs?

Tune into this week’s podcast to find out.

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