In this article, we discuss the 5 stocks Warren Buffett is selling. If you want to read our detailed analysis of Buffett’s history, and hedge fund performance, go directly to the 10 Stocks Warren Buffett is Selling.
5. Chevron Corporation (NYSE: CVX)
Number of Hedge Fund Holders: 41
Chevron Corporation (NYSE: CVX) is an energy company based in California. It is ranked fifth on our list of 10 stocks Warren Buffett is selling. The stock has returned 21% to investors in the past year. Buffett had trimmed stake in the company by 52% at the end of March compared to the holding at the end of December last year. Berkshire Hathaway, at the end of the first quarter of 2021, owned 23.6 million shares in the company worth over $2.4 billion, representing 0.91% of the investment portfolio.
On July 8, Chevron Corporation (NYSE: CVX) announced that it was teaming up with other oil firms on a project that would use satellite imaging to detect methane gas leaks at offshore energy facilities.
At the end of the first quarter of 2021, 41 hedge funds in the database of Insider Monkey held stakes worth $4.8 billion in Chevron Corporation (NYSE: CVX), down from 50 in the preceding quarter worth $5.3 billion.
In its Q1 2021 investor letter, ClearBridge Investments highlighted a few stocks and Chevron Corporation (NYSE: CVX) was one of them. Here is what the fund said:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names, (including) Chevron. We are positive on the company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
4. Liberty Global plc (NASDAQ: LBTYA)
Number of Hedge Fund Holders: 35
Liberty Global plc (NASDAQ: LBTYA) is a firm that provides broadband, video, mobile communications, and telephone services. It is placed fourth on our list of 10 stocks Warren Buffett is selling. The company’s shares have returned 15% to investors in the past twelve months. At the end of March, Berkshire Hathaway owned 3.3 million shares in the company worth $86 million, representing 0.03% of the portfolio. Buffett had trimmed stake in the firm by 82% by March compared to December 2020.
On June 23, investment advisory JP Morgan gave Liberty Global plc (NASDAQ: LBTYA) stock an Overweight rating with a price target of $37, implying an upside potential of close to 33% for the communications services firm.
At the end of the first quarter of 2021, 35 hedge funds in the database of Insider Monkey held stakes worth $848 million in Liberty Global plc (NASDAQ: LBTYA), down from 36 in the preceding quarter worth $1.1 billion.
3. Wells Fargo & Company (NYSE: WFC)
Number of Hedge Fund Holders: 96
Wells Fargo & Company (NYSE: WFC) is a financial services company headquartered in California. It is ranked third on our list of 10 stocks Warren Buffett is selling. The stock has returned 71% to investors over the past year. As part of a larger shedding of big finance, Buffett has trimmed stake in the firm by 99% in the past few months. At the end of March, Berkshire Hathaway owned 675,054 shares in the firm worth $26 million, representing a very small portion of the investment portfolio.
On July 8, news platform CNBC reported that Wells Fargo & Company (NYSE: WFC) would be discontinuing all personal credit lines within weeks. The move is part of a plan by the firm to focus on personal loans and credit cards.
At the end of the first quarter of 2021, 96 hedge funds in the database of Insider Monkey held stakes worth $7.4 billion in Wells Fargo & Company (NYSE: WFC) , down from 99 in the previous quarter worth $8.7 billion.
In its Q4 2020 investor letter, Davis Funds, an asset management firm, highlighted a few stocks and Wells Fargo & Company (NYSE: WFC) was one of them. Here is what the fund said:
“Detractors to performance relative to the index include financial services holdings such as Wells Fargo. While banks in general have suffered due to the recession and experienced credit losses, Wells Fargo also suffered from operational missteps. It is our expectation, however, that our bank holdings in general will benefit from stronger economic growth as the pandemic recedes; and we believe Wells Fargo in particular, will, over time, lower their costs and successfully grow their businesses.”
2. Synchrony Financial (NYSE: SYF)
Number of Hedge Fund Holders: 49
Synchrony Financial (NYSE: SYF) is a Connecticut-based financial services company. It is placed second on our list of 10 stocks Warren Buffett is selling. The company’s shares have offered investors returns exceeding 116% over the course of the past year. The company is one of the few stocks that Buffett has entirely removed from his portfolio in the first quarter of 2021.
On May 25, the Synchrony Financial (NYSE: SYF) board approved a share buyback program worth almost $3 billion. The firm also announced that it intended to maintain a quarterly cash dividend of $0.22/share of common stock through to 2022.
At the end of the first quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $1.8 billion in Synchrony Financial (NYSE: SYF), down from 50 in the preceding quarter worth $2.4 billion.
1. Suncor Energy Inc. (NYSE: SU)
Number of Hedge Fund Holders: 33
Suncor Energy Inc. (NYSE: SU) is a Canadian energy company. It is ranked first on our list of 10 stocks Warren Buffett is selling. The stock has offered investors returns exceeding 44% over the course of the past twelve months. Berkshire Hathaway no longer holds any stake in the firm as Buffett has, in the first three months of 2021, sold all the ownership he held in the firm last year.
On May 26, Suncor Energy Inc. (NYSE: SU) announced that it would aim to reach net zero emissions by 2050 and accelerate progress on the front by cutting present greenhouse gas emissions with a target of reducing them by 30% by 2030.
At the end of the first quarter of 2021, 33 hedge funds in the database of Insider Monkey held stakes worth $1 billion in Suncor Energy Inc. (NYSE: SU), up from 25 in the preceding quarter worth $686 million.
In its Q2 2020 investor letter, Brown Advisory, an asset management firm, highlighted a few stocks and Suncor Energy Inc. (NYSE: SU) was one of them. Here is what the fund said:
“We eliminated our small holding in Cimarex Energy in favor of consolidating our oil-related investments by adding to existing holding Suncor Energy, which we believe is a stronger company to own with oil prices at a historic low.”
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