Warren Buffett, Berkshire Hathaway’s (BRK-B) chairman, has a flair for financial stocks (XLF). Looking at Berkshire Hathaway’s portfolio at the end of the third quarter, the company held positions in Bank of America (BAC), Wells Fargo (WFC), American Express (AXP), and U.S. Bancorp (USB). Berkshire Hathaway also owns shares of Goldman Sachs (GS). The company took a new position in JPMorgan Chase (JPM) in the third quarter.
Buffett also took a new position in PNC Financial Services (PNC) during the third quarter. While Buffett has been trimming his stake in Wells Fargo slightly, it’s associated with keeping Berkshire Hathaway’s stake below 10%. Berkshire Hathaway was the largest shareholder in Wells Fargo, Bank of America, U.S. Bancorp, and American Express at the end of the third quarter.
What to expect in the fourth quarter
Berkshire Hathaway’s fourth-quarter 13F could reveal how the company deployed its cash in the fourth quarter. However, Buffett’s love for financial stocks might have continued in the quarter. We might also see Berkshire Hathaway adding to its small positions in companies like Oracle (ORCL), Travelers Companies (TVC), and PNC. Buffett prefers to hold large stakes in companies. Berkshire Hathaway has steadily increased its exposure to Apple (AAPL) after it first took a stake in 2016. However, Apple stock came under pressure in the fourth quarter. Apple stock started 2019 on a weak note after it lowered its guidance. Since then, Apple has recouped the losses.
While Buffett has been bullish on banks, some individuals see cryptocurrencies as a threat to established banks. We’ll explore Buffett’s views on cryptocurrencies in the next part.