Warren Buffett’s Berkshire Hathaway Scores with Massive Activision Stake, Filing Reveals

Mandatory Credit: Photo by Nati Harnik/AP/Shutterstock (11762544a)In this May 7, 2018, photo, Berkshire Hathaway Chairman and CEO Warren Buffett smiles during an interview in Omaha, Neb.
Nati Harnik/AP/Shutterstock / Nati Harnik/AP/Shutterstock

On Monday, Feb.14, Warren Buffett’s Berkshire Hathaway released its stock investments as of Dec. 31, 2021, revealing the purchase of a large stake in Activision, according to the 13F filing with the Securities and Exchange Commission (SEC).

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Berkshire owned 14.66 million shares valued at $975 million as of the end of 2021, according to the 13F filing. Barron’s reported that the stock closed on Feb. 14 at $81.50. Berkshire’s stake of shares of Activision is now worth more than $1 billion. The stock was flat on Feb. 15 and is up 20% year-to-date.

The Activision stake was made just before Microsoft announced the acquisition plans in January, for $95 per share, in an all-cash transaction valued at $68.7 billion, inclusive of Activision Blizzard’s net cash. When the transaction closes, Microsoft will become the world’s third-largest gaming company by revenue, behind Tencent and Sony, according to a press release. The news sent the stock up 25% to above $82. It has since fallen a bit, according to CNBC. This will be the largest deal ever by a U.S. technology company.

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Cathy Seifert, VP at CFRA Research, told GOBankingRates that Berkshire’s latest portfolio reflects its concentrated approach, with nearly 80% of the holdings concentrated in five names — AAPl, BAC, AXP, KO and KHC.

“Because of this long-standing composition, the portfolio is heavily weighted in technology, financial and consumer staples names,” Seifert said. “This provides an attractive means of diversification to Berkshire’s operating companies, which are concentrated in insurance, energy and industrial areas.”

“The latest significant purchase of ATVI shares is set to produce a significant gain since MSFT is set to acquire ATVI for $95 a share in cash,” she added.

Seifert also said that the Activision stake “reflects the influence and also the stock-picking skill of the portfolio managers.”

The 13F also showed that Buffett increased his stake of 107 million shares of Nu Holdings, the parent company of Brazilian digital bank Nubank, in which he had made a $500 million investment in June 2021 and which went public in December, as GOBankingRates previously reported.

In addition, Berkshire eliminated a holding in Teva Pharmaceutical during the fourth quarter that totaled 42 million shares on Sept. 30, worth about $400 million, Barron’s reported.

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 A form 13F is required to be filed within 45 days of the end of a calendar quarter for managers with more than $100 million in assets under management, according to the SEC. A manager can request to withhold information if, for example, the reportable security is likely to be substantially harmed by public disclosure of Form 13F data, the SEC says.

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About the Author

Yaël Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.
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