Warren
Buffett’s
Berkshire
Hathaway (BRK.A, BRK.B) has
released
its
fourth-quarter
2023
13F
regulatory
filing.
The
report
indicates
that
Berkshire
wasn’t
a
big
buyer
of
stocks
last
quarter.
That’s
not
surprising,
given
that
stocks
skyrocketed
during
the
period:
The Morningstar
US
Market
Index was
up
about
12%
during
the
fourth
quarter.
Here’s
a
look
at
some
of
the
stocks
that
Warren
Buffett
and
his
team
bought
and
sold
during
the
fourth
quarter,
as
well
as
several
of
the
most
undervalued
Buffett
stocks
to
buy
in
Berkshire
Hathaway’s
portfolio
today.
Berkshire
Hathaway’s
fourth-quarter
13F
didn’t
indicate
that
Buffett
added
any
new
names
to
the
publicly
traded
portfolio.
According
to
the
report,
Berkshire
simply
added
to
existing
positions
in
Chevron (CVX),
Occidental
Petroleum (OXY),
and
Sirius
XM
Holdings (SIRI).
However,
it’s
what
Berkshire
Hathaway didn’t report
that
has
the
financial
media
abuzz,
Morningstar
strategist Greggory
Warren
explains.
“The
SEC
occasionally
permits
confidential
treatment
for
new
stock
purchases
by
large
portfolio
managers,
exempting
them
required
disclosure
in
quarterly
13F
filings
when
‘such
action
is
necessary
or
appropriate
in
the
public
interest
and
for
the
protection
of
investors
or
to
maintain
fair
and
orderly
markets’.
“Berkshire
received
an
exemption
last
quarter
(much
as
it
has
at
different
times
in
the
past),
as
well
as
for
the
third
quarter
of
2023,
and
now
its
biggest
stock
purchase
during
the
third
and
fourth
quarters
remains
a
mystery
to
investors.
Eventually,
the
company
will
disclose
the
stock
(or
stocks)
that
they
have
been
buying,”
he
says.
Notably,
Berkshire
trimmed
its
position
in
Apple (AAPL) during
the
quarter.
But
despite
the
haircut,
Apple
stock
remains
Berkshire’s
top
holding
–
by
a
landslide.
Buffett
and
his
team
slashed
their
positions
in
HP (HPQ) and
Paramount
Global (PARA).
Berkshire
entirely
sold
out
of
its
positions
in
D.R.
Horton (DHI),
Globe
Life (GL),
Markel
Group (MKL),
and
StoneCo (STNE).
4
Warren
Buffett
Stocks
to
Consider
Many
of
the
publicly
traded
stocks
held
by
Berkshire
Hathaway
are
fairly
valued
or
overvalued
today,
according
to
Morningstar’s
metrics.
Here
are
some
of
the
stocks
among
its
holdings
in
the
latest
quarter
that
looked
undervalued
as
of
February
13,
2024.
•
Charter
Communications (CHTR)
•
Citigroup (C)
•
Kraft
Heinz (KHC)
•
Kroger (KR)
Here’s
a
little
bit
about
why
we
like
each
of
these
stocks
at
these
prices,
along
with
some
key
metrics
for
each.
All
data
is
as
of
February
13.
Charter
Communications
•
Morningstar
Rating:
5
stars
•
Morningstar
Economic
Moat
Rating:
Narrow
•
Morningstar
Capital
Allocation
Rating:
Standard
•
Industry:
Telecom
Services
Berkshire
Hathaway
owns
about
2.6%
of
Charter
Communications’
stock.
The
company
is
the
result
of
a
2016
merger
of
three
cable
companies:
Legacy
Charter,
Time
Warner
Cable,
and
Bright
House
Networks.
We
think
the
company
has
carved
out
a
narrow
economic
moat,
thanks
to
its
efficient
scale
and
cost
advantage.
Charter
Communications
stock
currently
trades
a
whopping
47%
below
our
$550
fair
value
estimate.
Citigroup
•
Morningstar
Rating:
4
stars
•
Morningstar
Economic
Moat
Rating:
None
•
Morningstar
Capital
Allocation
Rating:
Standard
•
Industry:
Banks
–
Diversified
Citigroup
isn’t
Berkshire
Hathaway’s
favourite
bank:
That
honour
goes
to
Bank
of
America (BAC),
which
is
one
of
the
top
holdings
in
Berkshire’s
publicly
traded
portfolio.
But
Citigroup
stock
is
more
attractive
from
a
valuation
perspective
today,
according
to
Morningstar.
Citigroup
stock
currently
trades
20%
below
our
$66
fair
value
estimate.
Kraft
Heinz
•
Morningstar
Rating:
5
stars
•
Morningstar
Economic
Moat
Rating:
None
•
Morningstar
Capital
Allocation
Rating:
Standard
•
Industry:
Packaged
Foods
Berkshire
Hathaway
owns
more
than
26%
of
Kraft
Heinz’s
stock.
The
packaged-foods
manufacturer
has
revamped
its
road
map
and
is
now
focused
on
consistently
driving
profitable
growth.
We
think
Kraft
Heinz
stock
is
worth
$53
per
share,
and
shares
are
trading
at
a
32%
discount
to
that
fair
value
today.
Kroger
•
Morningstar
Rating:
4
stars
•
Morningstar
Economic
Moat
Rating:
Narrow
•
Morningstar
Capital
Allocation
Rating:
Exemplary
•
Industry:
Grocery
Stores
Berkshire
Hathaway
owns
about
7%
of
Kroger’s
outstanding
shares.
Kroger
and
rival
Albertsons
(ACI)
have
announced
merger
plans,
though regulatory
hurdles
persist.
We
think
Kroger
has
carved
out
a
narrow
economic
moat
and
is
run
by
a
management
team
that
has
done
an
exemplary
job
of
allocating
capital.
Kroger
stock
trades
14%
below
our
$53
fair
value
estimate.
More
About
Warren
Buffett
Stock
Picks
Warren
Buffett
has
said
that
he
doesn’t
consider
himself
to
be
a
stock-picker;
instead,
he’s
a
company-picker.
That
comment
pretty
much
encapsulates
how
he
thinks
about
stocks:
they’re
parts
of
businesses.
Learn
more
about
how
the
Oracle
of
Omaha
chooses
companies
to
buy
in
How
to
Invest
Like
Warren
Buffett.
And,
read
the
words
of
wisdom
in
12
Lessons
on
Money
(And
Life)
from
Buffett
and
Munger.
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