June 18, 2024

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3 Stocks Warren Buffett Sold in 2023, and the 1 Stock He Couldn’t Get Enough Of

2 min read

Warren Buffett is known as one of the most successful investors in history. His long track record of outperforming the market backs up the notion. So when he makes a purchase for Berkshire Hathaway‘s (NYSE: BRK.A) (NYSE: BRK.B) portfolio, it’s worth paying attention.

Unfortunately, investors haven’t had much to get excited about in Buffett’s portfolio recently. During the first nine months of 2023, he was a net seller of stocks. He sold $32.8 billion in stocks for the company, buying just $9.1 billion in new investments.

There were several big investments Buffett trimmed in his company’s portfolio last year, but there’s one big holding he keeps buying. Here’s what investors need to know.

A close up on Warren Buffett's face.

Image source: The Motley Fool.

The three stocks Buffett has been selling

During 2023, Buffett cut significant positions in Activision Blizzard, HP (NYSE: HPQ), and Chevron (NYSE: CVX).

The sale of Activision was predictable. He made a big purchase of the stock in early 2022 following the company’s announced acquisition by Microsoft.

It was a classic arbitrage play. Buffett bought the shares below the acquisition price with the expectation that the deal would close and he would profit from holding the shares.

He didn’t end up holding on to the shares until the deal closed, selling a large portion in the second quarter and the rest in the third quarter. The deal closed in October of 2023 after he had completely exited his position in the stock. Nonetheless, it worked out well for him.

Buffett’s change of heart on HP was a bit surprising. He established a large position, exceeding 10% of the shares outstanding, in the first quarter of 2022. He added to it as recently as the first quarter of 2023. But he started selling shares in September, and the selling continued through November. He’s now cut the position by more than half from its peak.

Buffett is never afraid to admit when he’s made a mistake, and that appears to be the case with HP. As 2023 went on, it appeared the lasting hangover…



2024-01-27 07:22:00

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