A look at what Buffet recently sold : What do they have in common ?
Sold: U.S. Bancorp (USB)
Buffett has a long history of big bets on
bank stocks. In the first quarter of 2022, Berkshire sold off its last remaining shares of Wells Fargo & Co. (
WFC) after more than 20 years of holding the stock, leaving U.S. Bancorp as Berkshire's longest-running bank stock holding. Buffett first invested in U.S. Bancorp back in 2006, but he trimmed his stake by 31% in the third quarter and another 91% in the fourth quarter. Berkshire now holds just 6.6 million shares of USB stock worth $290.9 million, and Buffett may completely exit the position in the first quarter.
Sold: Bank of New York Mellon Corp. (BK)
Bank of New York Mellon is a trust bank, which means it has a unique business model that includes managing cash for large investment funds, providing day-to-day funding for large corporations and serving as a fixed-income clearing firm. The bank generates much of its income from transaction fees. Buffett first invested in BK stock back in 2010, but he reduced his stake by another 59% in the fourth quarter after selling 14% of his shares in the third quarter. Berkshire now holds about 25 million shares of BK stock worth roughly $1.1 billion.
Sold: Ally Financial Inc. (ALLY)
Ally Financial is a financial holding company that specializes in auto financing and mortgage lending. Ally shares dropped 47% in 2022 as supply shortages hit the auto market and rising mortgage rates weighed on the housing market. Buffett passed on the opportunity to buy the dip in the fourth quarter, instead reducing his stake by 200,000 shares. Ally shares are up 34.6% year to date in 2023 through Feb. 14, thanks to a fourth-quarter earnings beat in January. Fortunately, Berkshire still holds 29.8 million shares of ALLY stock worth about $728.6 million, making Ally a top Berkshire performer in 2023.
