Berkshire Hathaway has confirmed that it sharply increased its holding of Apple and sold some of its stake in International Business Machines in the first quarter, according to a new securities filing.
Berkshire Chairman Warren Buffett had previously announced these changes in media appearances.
The latest quarterly institutional investor filing on Monday with the Securities and Exchange Commission confirmed that Berkshire more than doubled its Apple holdings in the first quarter to 129 million Apple shares, worth $US18.6 billion, as of March 31.
That was equal to 2.4% of Apple’s issued shares. It is now Berkshire’s third biggest holding, ranking after Kraft Heinz and Well Fargo, but in front of Coca Cola.
Berkshire also sold 21% of its IBM stake in the first quarter.
Buffett told CNBC earlier this month that Berkshire had sold about one-third of its IBM holdings, suggesting that the rest of the sale took place in the second quarter.
Berkshire Hathaway also said it added to its already sizeable investments in American Airlines and Southwest Airlines Co, and shed its stake in Twenty-First Century Fox which is controlled by the family of Rupert Murdoch.
In a regulatory filing, Berkshire said that in the first quarter it boosted its stake in American by 8% to 49.3 million shares worth $US2.08 billion as of March 31, and in Southwest by 10% to 47.7 million shares worth $US2.57 billion.
But it also sold down its holdings in Delta Air Lines by 8%, ending the quarter with 55 million shares worth $2.53 billion.
Berkshire became one of the largest investors in American, Delta, Southwest and United Continental last year, after Buffett became convinced that the industry has avoided for years had changed its spendthrift ways.
He concluded that the industry had become more efficient, with fewer unsold seats and an ability to charge for checked bags and other amenities that were once free.
The sale of the Fox stake, which totalled $US251 million at year end, was completed long after the parent of Fox News became embroiled in a sexual misconduct scandal, but before its top-rated host Bill O’Reilly left the network.
Berkshire reported public equity holdings of $US161.87 billion as of March 31, in the filing with the SEC This was up 9.3% from $US147.98 billion at the end of 2016 and up 40% from $US115.46 billion at the end of, 2015.
That is the equity value of the investment portfolio only. It does not include any of the public debt and convertible securities held by Berkshire Hathaway, especially its vast insurance operations.
