Verizon and Chevron are Warren Buffett’s Secret Investment

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Warren Buffett’s Berkshire Hathaway

has shown remarkable promises

Chevron

and

Verizon Communications

at the end of the year 2020, having previously obtained permission to keep these stocks undistributed.

Berkshire (ticker: BRK.B) held 146.7 million shares of Verizon (VZ) worth $ 8.6 billion at the end of 2020 and 48.5 million shares of Chevron (CVX) worth $ 4.1 billion, according to a management filing Tuesday.

Verizon ‘s pledge is up sharply since the end of the third quarter, when Berkshire owned 58.4 million Verizon shares worth $ 3.4 billion. Chevron’s bet rose more modestly in the fourth quarter, from 44.3 million at the end of the third quarter. These were published in 13-F filings for the end of the third quarter and modified 13-F for the end of the third quarter.

The purchase of Verizon and Chevron appears to have been arranged by Buffett, the CEO, who is in charge of the company’s big equity portfolio.

Berkshire sought and received secrecy from the U.S. Securities and Exchange Commission for a Chevron and Verizon bet at the end of the third quarter, apparently because it continued to build positions in those stocks in the fourth quarter and they did not. for public disclosure in mid-November to prevent the collection of both stocks.

Berkshire also received a secret at the end of the third quarter for a $ 386 million seizure of

Marsh & McLennan

(MMC) which grew to $ 499 million at the end of the fourth quarter.

The revelations resolve Berkshire’s secret purchase secret that dispelled profiteering about what Buffett was buying. Many investors accepted that it was one stock, not two large purchases.

Barron’s wrote earlier Tuesday that the mystery was a commercial or business company based on Berkshire films and that Chevron was capable.

Chevron rose about 2% in after-hours trading, to $ 95, on Berkshire ownership news – the stock ended its regular session Tuesday at $ 93.13. Verizon was nearly 3% higher after hours, to $ 55.70, after finishing at $ 54.15.

Both purchases follow Buffett’s value guidelines. Verizon has a low valuation trade for about 10 times its 2021 earnings and 4.6% yield. It has found the S&P 500 in recent years and is down 7% in the last year while the index is up 16%.

Chevron has recovered from last year’s lows as oil prices have recovered but is still off 17% last year. The company is regarded as one of the strongest of the global superpower energy companies, with a better-than-competitive balance sheet

Exxon Mobil

(XOM) and major European competitors such as

Dutch Royal Shell

(RDS.A). Chevron’s share yield is 5.6% and payment is seen to be more secure with the rise in oil prices.

Berkshire also paid for his duties

Apple

(AAPL) to 887.2 million shares, according to Tuesday ‘s filing.

Write to Andrew Bary at [email protected]