Berkshire Hathaway Makes Strategic Shifts in Fourth Quarter Portfolio
In a significant move during the fourth quarter, Berkshire Hathaway Inc., led by Warren Buffett, dramatically reduced its stake in Amazon.com Inc. by more than 75%. Concurrently, the conglomerate established a new position in the New York Times Co., valued at approximately $351.7 million as of year-end. This investment represents one of Buffett's final acts as chief executive before stepping down on December 31.
Details of the New York Times Acquisition
According to a regulatory filing released on Tuesday, Berkshire acquired 5.1 million shares of the media publishing company over the three-month period ending in December. The New York Times saw its stock price increase by 1.8% to $75.39 in early trading on Wednesday, while Amazon advanced by 1.3%. This strategic pivot highlights Berkshire's evolving investment approach under Buffett's leadership.
Historical Context and Broader Portfolio Adjustments
Berkshire first entered Amazon in 2019, with Buffett later expressing regret for not investing sooner despite his traditional aversion to technology stocks. The firm now holds around 2.3 million Amazon shares. Beyond these changes, Berkshire continued to trim its positions in Bank of America Corp. and Apple Inc., reducing them to 7.1% and 1.5%, respectively, as part of a broader strategy initiated in 2024.
Additionally, Berkshire increased its stakes in Chevron Corp. and Chubb Ltd. during the quarter, raising them to 6.5% and 8.7%, respectively. The initial investment in Chubb was unveiled in May 2024 after a secret buildup, with shares rising about 11% in the fourth quarter amid rumors of a potential acquisition offer for American International Group Inc., which the company denied.
Buffett's Recent Investment Activity
In recent quarters, Buffett has been actively seeking new opportunities, including a deal to purchase Occidental Petroleum Corp.'s petrochemical business for $9.7 billion and building a $5.6 billion stake in Alphabet Inc., the parent company of Google. These moves underscore his ongoing influence in shaping Berkshire's portfolio despite his transition from the CEO role.
The shifts in Berkshire's holdings reflect a dynamic investment strategy, balancing reductions in tech and financial sectors with new bets in media and energy, signaling potential trends in the market as Buffett's era evolves.
