Who wouldn’t want to know of any purchases or sales made by one of the world’s top investors, Warren Buffett? Many investors are closely following in the footsteps of his investment firm Berkshire Hathaway. morning star It highlights four companies that have been acquired in recent months.
Berkshire Hathaway made significant purchases in the first quarter and held positions at Citigroup, Ally Financial, HP, Paramount Global and others. In addition, existing jobs at Apple, Chevron and General Motors have been expanded.
Positions sold out at AbbVie, Bristol Myers and Wells Fargo
But there were also sales. “It is remarkable that Berkshire completely reduced its positions in AbbVie and Bristol-Myers Squibb during the first quarter. It is also remarkable that the position in the much troubled US bank Wells Fargo, which has been for Berkshire for a long time, was also sold off. The gradual is almost out of interest in Verizon,” wrote Robert van den Auver of Morningstar.
Four new shares in the portfolio and were undervalued at the time of purchase.
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“This is a case of work in progress. The US bank is in the process of selling a number of subsidiaries targeting retail clients. Citigroup wants to refocus on international investment banking and wealth management for high net worth private clients.”
According to Morningstar analyst Eric Compton, this leads to better focus, a more understandable structure, and more stable and predictable profits. He says that because the activities have been so complex, the stock price has come under great pressure. Citigroup is believed to be worth $78 (Watch here current price).
The American company DaVita provides medical devices and dialysis services to more than 200,000 patients in the United States, making it the largest in the country. They are mid-cap stocks that occupy only a small position in the Berkshire portfolio, yet that position represents 38% of DaVita’s outstanding shares.
Thanks to its extensive network and close collaboration with physicians, the company has been awarded the Narrow Moat rating by Morningstar. This means that it has a reasonable competitive advantage. Morningstar uses a file fair value $116 per share; At the time of writing, it is trading at around $93 (see current price here).
Moody’s is a leading provider of credit ratings. The stock price has come under pressure due to high interest rates and economic fluctuations.
But the broad trench rating is valuable: Moody’s has a strong competitive advantage and strong profit margins, and is also stable over time, according to Morningstar analyst Rajiv Bhatia. He believes the stock is undervalued and has been assigned a fair value of $350 (current price is around $273 at the time of writing).
Finally, the stock of Paramount Entertainment, one of the world’s largest film studios. The company is off to a strong year-to-year start in 2022, with amazing growth in the streaming service Paramount+. Morningstar said growth in the direct-to-consumer business outpaced weak results in television and studio.
The economic moat is narrow thanks to its production studios and content. According to Neil Macker, Senior Analyst at Morningstar, Paramount has a value of $58 (Watch here current price). There was a price jump when it became known that Berkshire had taken a stand, but it appears to have run out again.
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