(Reuters) – Warren Buffett ‘s Berkshire Hathaway Inc on Tuesday announced two major new investments, revealing a $ 8.6 billion stake in phone company Verizon Communications Inc and a $ 4.1 billion stake in oil company Chevron Corp.
The investments were published in a regulatory filing detailing Berkshire stock ownership in the U.S. from December 31st.
Berkshire also unveiled a new $ 499 million stake in professional services firm Marsh & McLennan Cos.
To make room, Berkshire maintained its investments in several companies including Apple Inc., but at around $ 121 billion the iPhone maker remains its largest common stock.
Shares of Verizon rose 3.0%, Chevron rose 2.2% and Marsh remained unchanged in after-hours trading after the Berkshire filing.
Seeding signals Tuesday where Buffett and portfolio managers Todd Combs and Ted Weschler see value, though Buffett typically handles larger investments.
It also shows that Berkshire is looking for ways to use its cash reserve, which totaled $ 145.7 billion as of Sept. 30.
The Omaha, Nebraska-based conglomerate has more than 90 businesses including Geico car insurance, BNSF rail and Dairy Queen ice cream, but it has been five years since it was last taken over. , $ 32.1 billion purchase of Precision Castparts.
Berkshire had begun investing in Verizon, Chevron and Marsh by the third quarter of last year, and had received permission from the U.S. Securities and Exchange Commission to delay its commitments.
The SEC has several times over the years allowed Berkshire to quietly invest in companies, so that investors do not get money back on Buffett holders and raise companies’ stock prices before Berkshire makes a purchase .
Tuesday’s filing showed that Berkshire, a major investor in Bank of America Corp., was cutting back on smaller banking competitors, reducing interest in Wells Fargo & Co and stripping JPMorgan Chase & Co, M&T Bank Corp. and PNC Financial Services Group Inc.
Berkshire invested more in drug dealers Abbvie Inc, Bristol-Myers Squibb Co and Merck & Co. while selling a small stake in vaccine maker COVID-19 Pfizer Inc. They also hone the mining company Barrick Gold Corp.
Doug Kass, managing partner of Seabreeze Capital Investment Inc. in Palm Beach, Florida, said Verizon’s partnership “makes sense” for Berkshire, reflecting the phone company’s share payments and its prospects for revenue growth. wireless entry.
The low bank pledges may reflect Buffett ‘s concern about continued low interest rates, and coronavirus – related loan losses, Kass added.
Berkshire should provide more details about its investments when it releases its year-end results and Buffett’s annual shareholders letter on February 27th.
Reporting by Jonathan Stempel in New York; Additional commentary by April Joyner; Edited by Chris Reese and David Gregorio