Buffett's Berkshire Reports New Stakes In DaVita, Liberty Media
February 14 2012 - 6:33PM
Dow Jones News
Warren Buffett's Berkshire Hathaway Inc. (BRKA, BRKB) revealed
new investments in DaVita Inc. (DVA) and Liberty Media, though both
holdings were small enough to suggest they may not have been made
by the company's famed leader.
Berkshire held 2.68 million shares of DaVita, one of the largest
U.S. providers of dialysis services, as of Dec. 31, according to a
regulatory filing released Tuesday. The stake was worth $203
million.
The 1.7 million Liberty Media shares were valued at $132 million
at the end of the year. The company is a media conglomerate
controlled by John Malone.
Buffett's company also reported additional shares of Intel Corp.
(INTC), Visa Inc. (V), General Dynamics Corp. (GD), CVS Caremark
Corp. (CVS) and DirecTV Group Inc. (DTV). Berkshire had first
reported owning stakes in these companies earlier this year. All
but the DirecTV stake were worth less than $300 million at
year-end, and because of their size, many Buffett watchers have
concluded they were likely the work of Todd Combs, a relatively new
Berkshire investment manager.
The company also reported increased holdings in a long-held
position in Wells Fargo & Co. (WFC), a Buffett favorite.
Berkshire reported smaller stakes in Kraft Foods Inc. (KFT) and
Johnson & Johnson (JNJ), according to the filing. It also
appeared to have exited a position in Exxon Mobil Corp. (XOM).
The changes in Berkshire's equity portfolio were made in the
last three months of 2011, when the benchmark Standard & Poor's
500 Stock Index rose 11%. Buffett, one of the world's richest
people, wrote on Fortune magazine's website last week that
investing in stocks or buying "first-class businesses" outright are
far better options over the long term than bonds or gold, two
assets that "enjoy maximum popularity at peaks of fear."
Berkshire's total U.S. stock investments were worth $66.2
billion as of Dec. 31, up from the $59.1 billion Berkshire reported
a quarter earlier. Buffett's company, like other firms that control
an investment portfolio of more than $100 million, is required to
report its U.S. stock holdings 45 days after the end of a given
quarter.
News about Berkshire's stock picks has the power to move the
market. Some money managers use the disclosure to mimic the
investment success of the "Oracle of Omaha."
Buffett, 81, has long warned that not all the moves in the
investment portfolio are his. A portion of the portfolio was long
managed by Lou Simpson, the investment manager at Berkshire-owned
car insurer Geico Corp. He stepped down a year ago and Buffett has
named two new money managers: Combs and Ted Weschler, who was to
join Berkshire early this year after winding down his hedge fund,
Peninsula Capital Advisors LLC.
Each of the two men has about $3 billion to investment
initially, Buffett has said. But they will gradually get more of
Berkshire's money to invest over time and may be joined by a third
investment manager. Upon Buffett's eventual departure from the
company, the managers would take over Berkshire's entire stock and
debt portfolio.
Berkshire also showed a stake of 63.9 million shares of
International Business Machines Corp. (IBM), up from 57.3 million
at the end of the third quarter. Buffett had disclosed that
position on CNBC in November.
-By Erik Holm, Dow Jones Newswires; 212-416-2892;
erik.holm@dowjones.com
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