Warren Buffett Makes Waves with Portfolio Changes
Warren Buffett reduced his investments in two additional banks in the last quarter while acquiring new stocks in Capital One (COF).
According to official filings, the billionaire’s investment conglomerate, Berkshire Hathaway, sold $1.4 billion worth of its remaining shares in custody bank Bank of New York Mellon (BK) and Minneapolis regional lender US Bancorp (USB).
These actions reflect a trend of Buffett gradually decreasing his long-held positions in banks. Between 2020 and 2022, the Oracle of Omaha sold a significant portion of Berkshire’s holdings in US banks, some of which occurred just months before the banking system disruption that started in mid-March.
Despite his history of coming to the aid of troubled institutions, including during the 2008 financial crisis, the 92-year-old investor has not publicly played a similar role during the current crisis.
During Berkshire’s annual shareholders’ meeting earlier this month, Buffett expressed caution about holding a large number of bank stocks. However, he mentioned Bank of America as an exception and emphasized that it remains one of Berkshire’s largest holdings.
While reducing investments in some financial stocks, Buffett increased his holdings in others during the quarter. Berkshire added $954 million in Capital One (COF) and raised its stake in Ally Financial (ALLY) by $10.6 million. The conglomerate also sold $1.1 million of Jefferies Financial Group (JEF) and maintained its stake in Citigroup (C).
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US Bancorp, BNY Mellon, and Jefferies experienced declines during after-hours trading, while Bank of America, Citigroup, Capital One, and Ally saw gains.
Berkshire Hathaway was not the only prominent investment manager to sell bank shares in the last quarter. Bridgewater Associates, the largest hedge fund globally, divested approximately $180 million in bank stocks.
This included more than 80% of its holdings in Bank of New York Mellon and US Bancorp. Bridgewater also completely sold off positions in 15 other US lenders, including Bank of America (BAC), Western Alliance, Zions (ZION), PacWest (PACW), and New York Community Bank (NYCB).
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
