In this article, we discuss the 3 stocks that Warren Buffett is decreasing stakes in. If you want to read about some stocks in the Buffett portfolio, go directly to Warren Buffett is Decreasing Stakes in These 6 Stocks.
3. Royalty Pharma plc (NASDAQ:RPRX)
Number of Hedge Fund Holders: 19
Percentage Decrease in Stake in Q2 2022: 100%
Royalty Pharma plc (NASDAQ:RPRX) is a New York-based firm that operates in the pharma sector. Berkshire Hathaway sold off the entire stake it had in the firm during the second quarter of 2022.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Adage Capital Management is a leading shareholder in Royalty Pharma plc (NASDAQ:RPRX), with 16.7 million shares worth more than $702 million.
2. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 75
Percentage Decrease in Stake in Q2 2022: 15%
General Motors Company (NYSE:GM) makes and sells automobiles. Latest data shows that Berkshire Hathaway owned 52.8 million shares of General Motors Company (NYSE:GM) at the end of the second quarter of 2022 worth $1.6 billion, representing 0.55% of the portfolio.
On July 27, Benchmark analyst Michael Ward maintained a Buy rating on General Motors Company (NYSE:GM) stock and lowered the price target to $60 from $75, noting that higher interest costs at GM Financial as one of the reasons behind the target decrease.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Harris Associates is a leading shareholder in General Motors Company (NYSE:GM), with 43 million shares worth more than $1.3 billion. At the end of the second quarter of 2022, 75 hedge funds in the database of Insider Monkey held stakes worth $3.4 billion in General Motors Company (NYSE:GM), compared to 76 the preceding quarter worth $5.5 billion.
Diamond Hill Capital, in its Q1 2022 investor letter, mentioned General Motors Company (NYSE:GM). Here is what the fund has to say about General Motors Company in its letter:
“General Motors Company (NYSE:GM)—and the auto industry in general—continues to face headwinds related to supply chain disruptions and raw material cost inflation. In addition, uncertainty surrounding global energy markets due to inflation and the conflict in Ukraine has created a greater economic burden on consumers, which tends to slow automotive sales.”
1. STORE Capital Corporation (NYSE:STOR)
Number of Hedge Fund Holders: 22
Percentage Decrease in Stake in Q2 2022: 54%
STORE Capital Corporation (NYSE:STOR) is a real estate investment trust that owns and manages single tenant properties. At the end of June 2022, Berkshire Hathaway owned 6.9 million shares in STORE Capital Corporation (NYSE:STOR) worth $180 million, representing 0.06% of the portfolio.
In late June, Jefferies analyst Linda Tsai maintained a Hold rating on STORE Capital Corporation (NYSE:STOR) stock and lowered the price target to $27 from $29, noting that real estate demonstrated robust returns during past stagflation periods.
At the end of the second quarter of 2022, 22 hedge funds in the database of Insider Monkey held stakes worth $422 million in STORE Capital Corporation (NYSE:STOR), compared to 24 in the previous quarter worth $748 million. Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in STORE Capital Corporation (NYSE:STOR), with 3 million shares worth more than $79 million.
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