Buffett’s Selling Spree: A Look Into Berkshire Hathaway’s Recent Trades

No money manager is more revered on Wall Street than Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett. In his nearly 60-year tenure at the helm, the aptly named “Oracle of Omaha” has driven his company’s Class A shares (BRK.A) to an astonishing cumulative gain of more than 5,676,000%, as of the market close on Nov. 6.

Buffett, while not infallible, has a proven ability to spot remarkable investment opportunities. This skill explains why many investors aim to replicate his strategies and mimic his trading activities.

Investors seeking insight into Buffett’s stock purchases and sales benefit from mandatory public filings. Among these, Form 13F is particularly notable; it is filed with the Securities and Exchange Commission (SEC) no later than 45 days after each quarter ends. Berkshire’s next 13F report will be available following the closing bell on Thursday, Nov. 14, revealing every stock Buffett and his investment team bought or sold in the latest quarter, which ended in September.

Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.

But what if I told you we can uncover some of Buffett’s biggest trades even before Nov. 14?

Owing to Form 4 filings—required when Berkshire holds over a 10% stake in a public firm—along with corporate filings from abroad and Berkshire’s recently published operating results, we can easily identify which three stocks accounted for the majority of Buffett’s recent selling activities.

Buffett’s Ongoing Net Sales: A Two-Year Trend

While Form 13Fs reveal which stocks are in fashion at Berkshire, the cash flow statements provide insights into Buffett’s overall sentiment. Over the last eight quarters, from October 1, 2022, through September 30, 2024, Buffett has overseen more stock sales than purchases, according to Berkshire’s consolidated cash flow statements. The figures are as follows:

• Q4 2022: $14.64 billion in net-equity sales
• Q1 2023: $10.41 billion
• Q2 2023: $7.981 billion
• Q3 2023: $5.253 billion
• Q4 2023: $0.525 billion
• Q1 2024: $17.281 billion
• Q2 2024: $75.536 billion
• Q3 2024: $34.592 billion

Over the past two years, Buffett’s total net selling reached $166.2 billion more than his purchases, with the trend accelerating in 2024. Berkshire’s cash flow statement for the September quarter indicated the sale of just over $36 billion in equity securities, with nearly 90% of this attributed to three stocks.

Apple: $22.5 Billion Sold

Despite the upcoming 13F filing, Berkshire’s latest operating results revealed substantial trimming of its largest investment in tech, Apple (NASDAQ: AAPL).

Berkshire’s quarterly reports detail the fair values of its top five equity investments, calculated based on the respective company’s share price at quarter’s end (September 30). The recorded fair value for Apple was $69.9 billion, translating to roughly 300 million shares—100 million less than held at the end of June.

Since Berkshire is not a beneficial owner of at least 10% of Apple, a Form 4 is not required, leaving us unclear on the exact timing of these sell-offs during the third quarter or the average selling price. Nonetheless, observing Apple’s stock hover around $225 per share suggests approximately $22.5 billion of the $36 billion in net sales were linked to Apple.

For those curious about why the Oracle of Omaha would reduce his stake, he mentioned during Berkshire’s annual meeting in May his belief that corporate tax rates might rise. Thus, it made sense to realize significant unrealized gains while tax rates are low.

Image source: Getty Images.

Bank of America: $9.61 Billion Sold

SEC filings indicate Buffett has also been consistently selling his second-largest holding, now ranked third by market value: Bank of America (NYSE: BAC).

As of the end of June, Berkshire held over 1.03 billion shares, giving it a significant stake requiring prompt disclosure of any trades through Form 4.

During the third quarter, 13 Form 4 filings revealed Buffett sold around 235.17 million shares of BofA, bringing in $9,609,825,813. The filings specify the average sale price, allowing precise tracking of Berkshire’s proceeds.

The motivation behind selling could parallel Buffett’s remarks during the corporate meeting. With considerable unrealized gains in Bank of America, taking profits now may be prudent due to the historical lows in the corporate tax rate.

However, this selling might also signal Buffett’s concerns over an expensive stock market, indicating a shift in the company’s portfolio towards cash.

BYD: $44.3 Million Sold

Another sale from Buffett that won’t appear in the upcoming 13F relates to the Chinese electric-vehicle manufacturer BYD (OTC: BYDD.F).

A Form 2 filed with the Securities and Futures Commission of Hong Kong on July 16 showed the sale of 1,395,500 shares of BYD at an average price…

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Berkshire Hathaway Adjusts BYD Stake, Sales Surge in Third Quarter

Shares of BYD Corporation were recently priced at 246.96 Hong Kong dollars, equivalent to $31.76 U.S. per share. This sale brought in $44,321,080 for Berkshire Hathaway.

Warren Buffett’s decision to slightly reduce Berkshire’s stake in BYD comes as part of a strategy to tip the ownership below the 5% threshold, which would trigger additional regulatory paperwork. After the recent sale, Berkshire’s ownership in BYD dropped from 5.06% to 4.94%.

BYD Continues Strong Performance Amid Market Changes

The operating performance of BYD remains robust. Despite some notable selling from Buffett’s portfolio in other areas like Apple and Bank of America, BYD’s impressive growth in the third quarter has kept Berkshire’s interest intact. The company’s profits soared by double digits, outpacing North American EV leader Tesla in sales.

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Bank of America is an advertising partner of Motley Fool Money. Sean Williams holds positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Tesla. The Motley Fool recommends BYD Company. Please review our disclosure policy for more details.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.