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Berkshire Hathaway Purchases Taiwan Semiconductor in Q3

During the third-quarter bear market, Warren Buffett’s Berkshire Hathaway (BRKB) purchased shares of Taiwan Semiconductor (TSM) for the first time, while completely dumping Store Capital (STOR).

What Warren Buffett Purchased Was Sold In Q3

According to Berkshire’s latest 13F filing late Monday, worth more than $4.1 billion, Buffett-led Berkshire purchased nearly 60 million shares of Taiwan Semiconductor.

Taiwan Semi, better known as TSMC, the world’s largest contract chipmaker, produced a beat-and-raise for the third quarter in October, defying the chip industry downturn. TSM’s shares increased 11% in early trading on Tuesday.

In addition to Taiwan Semi, Berkshire Hathaway invested in Louisiana Pacific (LPX) and Jefferies Financial Group (JEF) during the third quarter bear market. It paid about $297 million for 5.8 million shares of LPX stock and nearly $13 million for 433,000 shares of JEF stock.

In premarket trading, LPX stock rose 10%. JEF gained 5.3% late Monday.

Berkshire increased its existing interests in many stocks during the quarter, including Occidental Petroleum (OXY) by 22%, Paramount Global (PARA) by 16%, Celanese (CE) by 6%, RH (RH), previously Restoration Hardware, by 8%, and Chevron (CVX) by 2%. The conglomerate purchased an additional 35.8 million shares of OXY stock and 12.7 million shares of PARA stock.

Berkshire cut its existing interests in numerous equities while departing Store Capital: 55% in US Bancorp (USB), 14% in Bank of New York Mellon (BK), 12% in Activision Blizzard (ATVI), 5% in General Motors (GM), and 4% in Kroger (KR).

Buffett was a net buyer of stocks, including Occidental Petroleum (OXY), during a tumultuous third quarter, according to the Berkshire quarterly report released on Nov. 5. Investors, however, were waiting for the 13F filing, which arrived Monday after the market closed, to discover more about the equities Buffett purchased and sold last quarter.

For the second quarter in a row, the S&P 500 index finished in the bear market territory.

Berkshire Hathaway’s Top Stock Holdings

According to the 13F filing late Monday, Berkshire maintained several top holdings in Warren Buffett’s Dow stocks-heavy portfolio in Q3.

Apple is the conglomerate’s most valuable stock by market capitalization (AAPL). However, Bank of America (BAC) is the most popular stock in terms of share count. Furthermore, American Express (AXP), Coca-Cola (KO), and Kraft Heinz (KHC) are among Buffett’s top stock holdings.

Amazon is a tiny yet notable holding (AMZN). Last quarter, Berkshire retained interests in all of these equities.

Warren Buffett’s picks have a strong track record of outperforming the market. The Berkshire CEO has a reputation as a buy-and-hold investor, with stocks that he has held for years or even decades. For example, the corporation has held AAPL shares since Q1 2016, and KO stock since Q1 2001.

Berkshire’s 13F filings are closely followed by investors to determine where the investing legend is putting his money to work in the stock market. A fresh Warren Buffett stock purchase might send a company’s stock skyrocketing.

In the third quarter, Warren Buffett’s stock acquisitions outpaced his stock sales by $3.7 billion, including a $2 billion investment in OXY stock. In addition, Berkshire Hathaway repurchased $1.05 billion in its own stock.

Berkshire Hathaway reported a $10.5 billion loss on equities investments during the third quarter’s volatility. Meanwhile, its cash reserves have increased from $105.4 billion at the end of June to $109 billion at the end of September.

Berkshire has increased its investing activity thus far in 2022. It significantly increased its energy bet following Russia’s invasion of Ukraine on February 24, which interrupted global oil and gas supplies. As the stock market rose higher in 2021, Berkshire Hathaway largely played defense.

Berkshire B-class shares fell 0.3% today on the stock exchange. Apple’s stock dropped 0.95%.

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