Want to Invest Like Buffett? Dump These Stocks

Mandatory Credit: Photo by Nati Harnik/AP/Shutterstock (10725771a)Warren Buffett, Chairman and CEO of Berkshire Hathaway, smiles as he plays bridge following the annual Berkshire Hathaway shareholders meeting in Omaha, Neb.
Nati Harnik/AP/Shutterstock / Nati Harnik/AP/Shutterstock

Warren Buffett’s Berkshire Hathaway dumped almost half of its Chevron holdings, which was the “mystery stock” that had been revealed in February.

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The Oracle of Omaha has bought a $4.1 billion stake in oil company Chevron, according to the Securities and Commission’s filing as reported by Reuters at the time. In Berkshire Hathaway’s filing in November, Buffett has omitted confidential information from the public Form 13F report and filed it separately with the SEC, according to that filing.

Berkshire Hathaway also disclosed that it had largely eliminated its remaining holding in Wells Fargo and in Merck by 37%, to 17.9 million shares, according to its quarterly 13-F filing, as reported by Barron’s.

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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Chevron was Berkshire’s second largest new equity investment of the year, behind only Verizon Communications, Barron’s reported, and the Merck holding also was accumulated in 2020.

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During the Berkshire Hathaway’s annual shareholder meeting, aka “Woodstock for Capitalists,” which took place May 1 in Los Angeles, Buffett addressed environmental concerns over the company’s stake in Chevron.

“Chevron is not an evil company in the least and I have no compunction about owning Chevron,” Buffett said, according to Yahoo Finance.

“If we owned the entire business, I would not feel uncomfortable about being in that business. I think Chevron has benefitted societies in all kinds of ways, and I think it will continue to,” he added.

Following the meeting, Buffett announced that Greg Abel, CEO of Berkshire Hathaway Energy, would be his successor. He also noted that the other front-runner for the position, Ajit Jain, who is the Vice Chairman of Insurance Operations for Berkshire Hathaway, would be next in the line of succession.

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Buffett told CNBC at the time that age was a factor in the decision. Jain is 69 and Abel is 59.

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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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