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Highlights
- Berkshire’s major investments in companies like Apple Inc, Coca-Cola Co, and Bank of America remained unchanged in the second quarter.
- Berkshire trimmed its shares in healthcare companies like Biogen, Merck & Co, AbbVie Inc, and Bristol-Myers Squibb Co.
- It also sold significant stakes in General Motors Co, Chevron Corporation, Axalta Coating Systems, US Bancorp, Liberty Global, etc.
Billionaire Warren Buffett’s Berkshire Hathaway Inc (BRK.A) has ramped up stakes in the grocery giant The Kroger Company (KR) while trimming its shares in healthcare firms.
The decision may have surprised many Wall Street investors who seemed skeptical about the supermarket industry’s growth potential amid a raging delta epidemic.
Warren Buffett’s company revealed on Monday that it increased its stakes by nearly 11 million shares in Kroger to 61.8 million shares in the second quarter.
In addition, it trimmed its shares in healthcare companies like Biogen, Merck & Co, AbbVie Inc, and Bristol-Myers Squibb Co.
Berkshire also sold significant stakes in General Motors Co, Chevron Corporation, Axalta Coating Systems, Marsh & McLennan, US Bancorp, and Liberty Global.
However, Berkshire’s major investments in companies like Apple Inc, Coca-Cola Co, and Bank of America remained unchanged during the quarter.
The Nebraska-based company also owns over 90 firms, from furniture, jewelry, railroad, insurance to shoe business. The Kroger Company, on the other hand, is famed for its retail stores like King Soopers, Harris Teeter, and Kroger.
Also Read: Is Warren Buffett a value or a growth investor?
Source: Pixabay
Why is Warren Buffett confident of Kroger?
The news of Berkshire Hathaway’s increased stake in Kroger hit the global headlines on Monday after the company gave the information to the Securities and Exchange Commission (SEC) in its latest 13F report. Many investors look to the billionaire investor for inspiration because of his remarkable track record for big returns on his investments.
Some analysts believe the decision may have been driven by the stock’s smaller value relative to its earnings estimates. Also, the grocery company is ramping up its digital sales and building new fulfillment centers to handle online orders that are likely to give impetus to its business.
Although investors may have been skeptical about a faster recovery of the retail business in the short term, given the uncertainty surrounding the delta virus, Berkshire’s decision may rekindle hope in the investing community to look for retail stocks, say analysts.
