Warren Buffett Stocks: Berkshire Hathaway Buys Taiwanese Semiconductors in Q3, Sells Those Shares

Warren Buffett’s Berkshire Hathaway (BRKB) company’s shares Taiwan Semiconductor (TSM) while dumping in a bear market for the first time in the third quarter Store Equity (STOR) completely.


Whatever Warren Buffett bought was sold in the third quarter

Buffett-led Berkshire picked up nearly 60 million shares of Taiwan Semiconductor worth more than $4.1 billion, according to Berkshire’s latest 13F filing late Monday, as tracked by Whalewisdom.com.

In October, Taiwan Semi, also known as TSMC, the world’s largest contract chip maker, posted a beat and growth for the third quarter, defying weakness in the chip sector. TSM shares rose 11% on Tuesday.

Along with Taiwan Semi, Berkshire Hathaway also opened positions Louisiana Pacific (LPX) and Jefferies Financial Group (JEF) in a Q3 bear market. He bought 5.8 million LPX shares worth about $297 million and about 433,000 JEF shares worth about $13 million.

LPX shares rose 10% in premarket trading. JEF was up 5.3% late Monday.

During the quarter, Berkshire increased its holdings in several stocks: in Occidental Petroleum (OXY) 22%; Paramount Global (PARA) 16%; Celanese (CE) 6%; RH (RH), formerly Recovery Apparatus, 8%; and Chevron (CVX) 2%. The conglomerate bought more than 35.8 million shares of OXY and more than 12.7 million shares of PARA.

While exiting Store Capital last quarter, Berkshire reduced existing holdings in several stocks: in US Bancorp (USB) 55%; Bank of New York Mellon (UK) 14%; Activision Blizzard (ATVI) 12%; General Motors (GM) 5%; and Kroger (KR) 4%.

Berkshire’s Q3 earnings report on Nov. 5 already revealed that Buffett is a net buyer of stocks, including stocks. Occidental Petroleum (OXY), during volatile Q3. But investors were waiting for a 13F filing after the market closed on Monday to learn more about what stocks Buffett bought and sold last quarter.

The S&P 500 ended the third quarter in bear market territory for the second quarter in a row.

Best Berkshire Hathaway Stock Holdings

In the third quarter, Berkshire held steady several of the top holdings in Warren Buffett’s Dow stock-heavy portfolio, according to a 13F filing Monday.

The conglomerate has the highest shares by market value apple (AAPL). But Bank of America (BAC) is the #1 stock by the number of shares held. In addition to, American Express (AXP), Coca Cola (KO) and Kraft Heinz (KHC) is among Buffett’s biggest holdings.

It is a smaller but notable holding Amazon (AMZN). Berkshire maintained positions in each of these holdings last quarter.

Warren Buffett has a long track record of beating the market with his picks. The Berkshire chief earned a reputation as a buy-and-hold investor, holding stocks for years and even decades. For example, the company has held AAPL shares since the first quarter of 2016 and KO shares since the first quarter of 2001.

Investors are watching Berkshire’s 13F filings to see where the investing legend has put his money to work in the stock market. Warren Buffett’s purchase of a new stock can raise the shares of that company.

Market Timing with IBD’s ETF Market Strategy

In the third quarter, Warren Buffett’s stock purchases exceeded stock sales by $3.7 billion, including $2 billion invested in OXY stock. Berkshire Hathaway also bought back $1.05 billion of its own stock.

Amid Q3 volatility, Berkshire posted a $10.5 billion loss on equity investments. Meanwhile, its cash reserves rose to $109 billion at the end of September from $105.4 billion at the end of June.

So far in 2022, Berkshire has increased the pace of its investment activity. He raised his energy bet in particular after Russia’s February 24 invasion of Ukraine cut off global oil and gas supplies. In 2021, Berkshire Hathaway mostly played defense as the stock market moved higher.

Berkshire’s Class B shares fell 0.3% in trading today. Apple shares fell 0.95%.

Find Aparna Narayanan on Twitter @IBD_Aparna.


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