Renowned investor Warren Buffett recently submitted his 13F report for the second quarter of 2023, providing insights into his investment moves during this period. Known for his value investing philosophy, Buffett's investment decisions are closely watched by investors worldwide. His approach, characterized by a focus on undervalued companies with strong fundamentals and long-term growth potential, has proven successful over the decades.
As of the end of Q2 2023, Buffett's portfolio contained 49 stocks, with a total value of $348.19 billion. The top holdings were Apple Inc. (AAPL) at 51.00%, Bank of America Corp (BAC) at 8.51%, and American Express Co (AXP) at 7.59%.
Notable New Buys
Buffett's investing conglomerate made three new buys during the second quarter, including D.R. Horton Inc. (DHI, Financial), NVR Inc. (NVR, Financial) and Lennar Corp. (LEN.B, Financial). Berkshire purchased 5,969,714 shares of D.R. Horton, giving the position 0.21% equity portfolio weight. Shares averaged $109.16 during the second quarter.
The conglomerate also invested in 11,112 shares of NVR, giving the position 0.02% equity portfolio weight. Shares of NVR traded at an average price of $5,816.26 during the second quarter.
Lastly, Berkshire invested in 152,572 shares of Lennar, with shares averaging $98.59 during the second quarter.
It is notable that all three new buys are in the Homebuilding & Construction sector.
Top Three Sells of the Quarter
Among the notable sell transactions in the quarter, Buffett reduced his stake in Activision Blizzard Inc (NAS:ATVI) by 34,781,660 shares, impacting the equity portfolio by 0.91%. The stock traded at an average price of $81 during the quarter. As of August 14, 2023, ATVI's price stood at $90.79, with a market cap of $71.43 billion. The stock has returned 13.59% over the past year. GuruFocus rates the company's financial strength and profitability 8 out of 10. ATVI's valuation metrics include a price-earnings ratio of 33.26, a price-book ratio of 3.43, a PEG ratio of 332.60, a EV-to-Ebitda ratio of 21.11, and a price-sales ratio of 8.26.
In another significant move, Buffett reduced his investment in Chevron Corp (NYSE:CVX) by 9,287,475 shares, impacting the equity portfolio by 0.47%. The stock traded at an average price of $160.37 during the quarter. As of August 14, 2023, CVX's price was $164.03, with a market cap of $312.90 billion. The stock has returned 6.10% over the past year. GuruFocus rates the company's financial strength 8 out of 10 and profitability 7 out of 10. CVX's valuation metrics include a price-earnings ratio of 10.40, a price-book ratio of 1.94, a PEG ratio of 1.16, a EV-to-Ebitda ratio of 5.53, and a price-sales ratio of 1.47.
Buffett also completely sold out his 2,289,864-share investment in McKesson Corp (NYSE:MCK), which previously accounted for 0.25% of his portfolio. The stock traded at an average price of $383.91 during the quarter. As of August 14, 2023, MCK's price was $438, with a market cap of $59.09 billion. The stock has returned 20.44% over the past year. GuruFocus rates the company's financial strength 7 out of 10 and profitability 8 out of 10. MCK's valuation metrics include a price-earnings ratio of 16.34, a EV-to-Ebitda ratio of 11.51, and a price-sales ratio of 0.22.
These transactions reflect Buffett's strategic investment decisions based on his value investing philosophy. Investors can gain valuable insights from these moves, which could potentially guide their own investment strategies.
