In this article, we discuss the 10 stocks that Warren Buffett is selling. If you want to skip our detailed analysis of these stocks, go directly to Warren Buffett is Selling These 5 Stocks.
Warren Buffett, also known as the Oracle of Omaha, is one of the most well-known and successful investors of all time. Buffett began building his empire at the age of 11 when he purchased his first stock. As of November 24, the legendary investor has a net worth of $104.5 billion, according to Forbes. At 91, the value investor is the genius behind Berkshire Hathaway, which had a portfolio value of $293 billion at the end of the third quarter.
Berkshire Hathaway’s concentrated portfolio of 43 companies includes Apple Inc. (NASDAQ:AAPL), Bank of America Corporation (NYSE:BAC), The Kraft Heinz Company (NASDAQ:KHC), The Coca-Cola Company (NYSE:KO), and American Express Company (NYSE:AXP).
In this article, we will take a look at some of the stocks in which the fund sold its stake in the third quarter.
Overall, Berkshire Hathaway reduced stakes in seven stocks and sold all of its positions in three stocks at the end of the September quarter. At the same time, the fund initiated positions in two stocks and bought additional shares of Chevron Corporation (NYSE:CVX), based on its Q3 13F filings.
Our Methodology
The stocks were picked from the third-quarter regulatory filings of Berkshire Hathaway. We selected the stocks that the fund sold entirely in Q3, and also those in which it reduced its hold in the period. Percentage decline of the fund’s stake in each company is mentioned.
Warren Buffett is Selling These 10 Stocks
10. Liberty Global plc (NASDAQ:LBTYK)
Number of Hedge Fund Holders: 41
Percentage Decline in Stake: 100%
Warren Buffett completely sold his stakes in Liberty Global plc (NASDAQ:LBTYK). The value investor sold off the remaining 1.9 million shares of the international broadband company.
The London-based broadband company runs international brands including VodafoneZiggo, Telenet, Virgin Media, and Sunrise UPC. During the third quarter, the company added 266,000 broadband and postpaid mobile subscribers. Shares of Liberty Global plc (NASDAQ:LBTYK) rose 30% in the past twelve months.
Jeffrey Wlodarczak of Pivotal Research kept a Buy rating on Liberty Global plc (NASDAQ:LBTYK) in October. The analyst increased his price target for the insurance stock to $43 from $40.
Of the 867 elite funds tracked by Insider Monkey, 41 were long Liberty Global plc (NASDAQ:LBTYK) at the end of September, compared to 42 in the second quarter of 2021.
9. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 77
Percentage Decline in Stake: 100%
Merck & Co., Inc. (NYSE:MRK) gained 9.2% in the past six months. The New Jersey-based pharmaceutical company has outperformed in recent months, due to its top-selling cancer drug Keytruda and its COVID-19 pill. Despite this, the Oracle of Omaha completely sold off all the remaining shares of the pharmaceutical stock.
Berkshire Hathaway exited its position in Merck & Co., Inc. (NYSE:MRK) in the third quarter, selling over 9 million shares worth $712 million. The drugmaker comprised 0.24% of Berkshire’s portfolio. Overall, 77 funds were bullish on Merck & Co., Inc. (NYSE:MRK) by the end of the September quarter, compared to 79 in the second quarter.
Following the acquisition of Major Pharma, Truist analyst Robyn Karnauskas raised his price target for Merck & Co., Inc. (NYSE:MRK) to $95 from $92 while maintaining a Buy rating on November 24.
Artisan Partners, in its Q1 2021 investor letter, mentioned Merck & Co., Inc. (NYSE:MRK), and shared their insights on the company. Here is what the fund said:
“In Q1, we initiated a position in Merck, a provider of health care solutions including prescription medicines, vaccines, biologic therapies, animal health and consumer care products. We purchased Merck when the stock came under pressure in part on concerns that the newly minted Biden administration could implement regulatory changes and lower drug costs in the pharmaceutical industry. Recent, but anticipated changes to Merck’s management team have also weighed on shares, as have concerns over the company’s heavy reliance on immunotherapy treatment Keytruda. Notably, Merck is not getting much credit from investors for the 60+ programs it has in clinical development, despite having several solid and large new product opportunities. Additionally, the company’s strong balance sheet and robust free cash flow provide it multiple options for future partnerships and acquisitions. While Merck is undergoing a period of transition, we think the company’s fundamentals are strong and believe changes to management should be a catalyst for improvement.”
8. Organon & Co. (NYSE:OGN)
Number of Hedge Fund Holders: 35
Percentage Decline in Stake: 100%
Another stock that exited Berkshire Hathaway’s portfolio in the third quarter is Organon & Co. (NYSE:OGN), a pharmaceutical company that focuses on women’s health. The company sells over 60 products in 140 markets globally.
Organon & Co. (NYSE:OGN) completed its spin-off from Merck & Co., Inc. in June 2021. The fund sold off shares of the pharmaceutical company in Q3, which accounted for not more than 0.02% of Berkshire Hathaway’s portfolio.
At the end of the third quarter of 2021, 35 hedge funds in the database of Insider Monkey held stakes worth $332 million in Organon & Co. (NYSE:OGN), compared to 44 in the previous quarter worth $428 million.
7. Marsh & McLennan Companies, Inc. (NYSE:MMC)
Number of Hedge Fund Holders: 42
Percentage Decline in Stake: 35%
Marsh & McLennan Companies, Inc. (NYSE:MMC) is a professional services firm based in New York. The company provides insurance and consulting services to clients globally. The insurance company saw a year-over-year sales growth of 16% to $4.6 billion in the third quarter of 2021. The company also reported an EPS of $1.08, beating estimates by $0.08 in the same period.
With plenty of insurance companies on its plate, Berkshire Hathaway decreased its stake in Marsh & McLennan Companies, Inc. (NYSE:MMC) by 35% between the periods of June to September. Even so, Warren Buffett’s hedge fund firm remains the biggest stakeholder in the company. At the end of Q3, the fund held 2.7 million shares of the insurance company worth over $415 million.
Meanwhile, Jefferies analyst Yaron Kinar initiated a Buy rating on Marsh & McLennan Companies, Inc. (NYSE:MMC) in November with a price target of $149. Additionally, 42 hedge funds tracked by Insider Monkey were bullish on Marsh & McLennan Companies, Inc. (NYSE:MMC) with stakes worth $1.98 billion at the end of the third quarter, up from 41 in the preceding quarter valued at $2.53 billion.
Marsh & McLennan Companies, Inc. (NYSE:MMC) is one of the stocks that remain in the portfolio of Berkshire Hathaway along with Apple Inc. (NASDAQ:AAPL), Bank of America Corporation (NYSE:BAC), The Kraft Heinz Company (NASDAQ:KHC), The Coca-Cola Company (NYSE:KO), and American Express Company (NYSE:AXP).
6. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 81
Percentage Decline in Stake: 30%
As of the end of Q3, Warren Buffett owned 14 million shares of AbbVie Inc. (NYSE:ABBV) after the hedge fund manager unloaded 30% of his stake in the Illinois-based drug company. At the end of the September quarter, Berkshire Hathaway had a $1.5 billion stake in the pharmaceutical company.
Berkshire Hathaway is still the biggest shareholder of AbbVie Inc. (NYSE:ABBV) as of the end of Q3. The pharmaceutical behemoth is one of Buffett’s classic dividend aristocrat picks. The company offers a dividend yield of 4.74%.
Recently, AbbVie Inc.’s (NYSE:ABBV) price target was raised to $135 from $118 by Truist analyst Robyn Karnauskas. The analyst kept a Buy rating on the drug manufacturing company.
With a total stake of $4.14 billion, 81 elite funds tracked by Insider Monkey held a position in AbbVie Inc. (NYSE:ABBV) at the end of the September quarter, compared to 82 in the second quarter.
Just like Apple Inc. (NASDAQ:AAPL), Bank of America Corporation (NYSE:BAC), The Kraft Heinz Company (NASDAQ:KHC), The Coca-Cola Company (NYSE:KO), and American Express Company (NYSE:AXP), AbbVie Inc. (NYSE:ABBV) is a good investment option for value investors, according to market analysts.
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Disclosure. None. Warren Buffett is Selling These 10 Stocks is originally published on Insider Monkey.
