By Jonathan Stempel
May 15 (Reuters) –
Berkshire Hathaway on Friday disclosed a new $2.65 billion investment in Delta Air Lines and a small stake in Macy’s, and said it sold many of its smaller stock holdings including Amazon.com, UnitedHealth Group, and the credit card networks Visa and Mastercard.
The changes were part of a portfolio reshuffling in the first quarter, which followed the promotion of Greg Abel to succeed legendary investor Warren Buffett as Berkshire’s chief executive.
Berkshire said in a regulatory filing that it also more than tripled its share stake in Google parent Alphabet, which at $16.6 billion has become one of its largest common stock investments.
Berkshire also more than doubled its stake in the New York Times, and said it owned 9.4% of that company’s stock.
The filing contained Omaha, Nebraska-based Berkshire’s U.S.-listed stock holdings as of March 31, which comprised most of its $288 billion equity portfolio.
Berkshire bought $15.94 billion and sold $24.09 billion of stocks in the January-to-March period.
DELTA ROUND-TRIP
Most stock sales were likely directed by Abel, who based on prior disclosures inherited most of Berkshire’s equity portfolio including the portion belonging to Todd Combs, a Buffett protege who left in December to join JPMorgan Chase.
Abel said in February he oversaw 94% of Berkshire’s stock holdings, while investment manager Ted Weschler handled 6%.
The 6.1% stake in Delta, comprising 39.8 million shares, follows a post-pandemic rebound in air travel, though carriers are now struggling with rising fuel costs amid Middle East conflicts.
Berkshire once held an 11% stake in the Atlanta-based carrier, but sold that stake and similar percentage stakes in American Airlines, Southwest Airlines and United Airlines in April 2020, early in the pandemic.
Buffett, who remains Berkshire’s chairman, said at the time “the world had changed” for the aviation industry.
Delta is now regarded as among the best-run large U.S. airlines. Its shares rose 3.3% in after-hours trading, likely reflecting what investors view as Berkshire’s stamp of approval. The carrier did not immediately respond to a request for comment.
Macy’s shares, meanwhile, rose 6.3% after-hours following Berkshire’s disclosure of a 3-million-share stake worth $55 million. The New York Times also rose after-hours.
BERKSHIRE ALSO SELLS DOMINO’S AND AON
The largest stock positions that Berkshire exited, based on year-end holdings, included Visa, Mastercard, UnitedHealth, Domino’s Pizza, insurance brokerage Aon and swimming pool supplies distributor Pool.
Berkshire also sold 35% of its Chevron shares, though the oil company remained Berkshire’s fifth largest stock holding. Its share price rose 36% in the quarter as oil prices surged.
Friday’s filing does not say which investments are overseen by Abel or Weschler.
Larger investments – led by Apple, American Express, Coca-Cola, Bank of America and Chevron–are generally Abel’s.
Berkshire also owns dozens of businesses including the BNSF railroad, Geico car insurance, energy and manufacturing companies, and retail brands such as Brooks, Dairy Queen, Fruit of the Loom and See’s.
(Reporting by Jonathan Stempel in New York; Editing by Bill Berkrot and Sanjeev Miglani)
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