In this article, we discuss the 5 stocks that Warren Buffett is selling. If you want to read our detailed analysis of these stocks, go directly to Warren Buffett Is Selling These 10 Stocks.
5. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 74
Percentage Decrease in Stake in Q4: 77%
Bristol-Myers Squibb Company (NYSE:BMY) makes and sells biopharma products. Hedge funds are exceedingly bullish on the stock. At the end of the third quarter of 2021, 74 hedge funds in the database of Insider Monkey held stakes worth $4.5 billion in Bristol-Myers Squibb Company (NYSE:BMY).
However, Berkshire has been busy selling Bristol-Myers Squibb Company (NYSE:BMY) stock in the past few months. The fund decreased its stake in the company by staggering 77% in the fourth quarter of 2021. It now owns 5.2 million shares of Bristol-Myers Squibb Company (NYSE:BMY) worth $324 million, representing 0.09% of the portfolio.
In its Q4 2020 investor letter, Wedgewood Partners, an asset management firm, highlighted a few stocks and Bristol-Myers Squibb Company (NYSE:BMY) was one of them. Here is what the fund said:
“Bristol-Myers Squibb recently reported accelerating sales as much of the medical services industry returned to work. The Company continues to expect double-digit earnings growth over the next few years, driven by existing drugs, in addition to a broad pipeline of new drugs and indications. While the market remains fixated on a couple of patent expirations that could occur over the next several years, we think this is well-known at this point, yet the market still undervalues a couple of key acquisitions the Company has made in the past few years, particularly Celgene, which was acquired for a song.”
4. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 81
Percentage Decrease in Stake in Q4: 79%
AbbVie Inc. (NYSE:ABBV) markets pharma products. It is another biopharma stock that Buffett has decreased exposure to in recent months. Between October and December last year, Berkshire decreased its stake in the company by close to 80%. It now owns just over 3 million shares of AbbVie Inc. (NYSE:ABBV) worth $410 million.
Overall, hedge funds are not on the same page with Berkshire regarding AbbVie Inc. (NYSE:ABBV) as the smart money looks bullish on the pharmaceutical company. At the end of the third quarter of 2021, 81 hedge funds in the database of Insider Monkey held stakes worth $4.1 billion in AbbVie Inc. (NYSE:ABBV).
3. Marsh & McLennan Companies, Inc. (NYSE:MMC)
Number of Hedge Fund Holders: 42
Percentage Decrease in Stake in Q4: 86%
Marsh & McLennan Companies, Inc. (NYSE:MMC) operates as a professional services firm. There is positive hedge fund sentiment around the company. At the end of the third quarter of 2021, 42 hedge funds in the database of Insider Monkey held stakes worth $1.9 billion in Marsh & McLennan Companies, Inc. (NYSE:MMC), up from 41 in the preceding quarter worth $2.5 billion.
Meanwhile, Berkshire has been busy selling Marsh & McLennan Companies, Inc. (NYSE:MMC) stock. In the fourth quarter of 2021, the fund decreased its stake in the company by 86%. It now owns just 404,911 shares of Marsh & McLennan Companies, Inc. (NYSE:MMC) worth $70 million, representing 0.02% of the portfolio.
2. Sirius XM Holdings Inc. (NASDAQ:SIRI)
Number of Hedge Fund Holders: 27
Percentage Decrease in Stake in Q4: 100%
Sirius XM Holdings Inc. (NASDAQ:SIRI) provides satellite radio services. It is one of two stocks that Berkshire sold off entirely during the fourth quarter of 2021. The firm had featured in the fund’s portfolio since late 2016. Buffett had been selling the stock since 2020.
Elite hedge funds still hold large stakes in Sirius XM Holdings Inc. (NASDAQ:SIRI). Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in Sirius XM Holdings Inc. (NASDAQ:SIRI) with 11.9 million shares worth more than $75 million.
1. Teva Pharmaceutical Industries Limited (NYSE:TEVA)
Number of Hedge Fund Holders: 22
Percentage Decrease in Stake in Q4: 100%
Teva Pharmaceutical Industries Limited (NYSE:TEVA) makes and sells generic medicines. Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Abrams Capital Management is a leading shareholder in Teva Pharmaceutical Industries Limited (NYSE:TEVA) with 24 million shares worth more than $192 million.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) had been in the Berkshire portfolio since the fourth quarter of 2017. After registering no activity around the stock for six straight quarters, the fund sold off its entire stake in the company between October and December 2021.
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