Berkshire Hathaway Buys Liberty Global; Adds Exxon Mobil, Exercises GE Warrants; Sells Dish, GlaxoSmithKline

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Warren Buffett’s Berkshire Hathaway Inc (BRKA) (BRKB) filed its Form 13F for the period ending 12-31-2013. The worth of positions is as disclosed for the period ending Dec 31st, 2013.

Berkshire’s new positions

It is well known that positions less than $1 billion are typically the work of two of Berkshire’s investment managers, Todd Combs and Ted Weschler.  The only new position that Berkshire added from its previous 13F,for the period ending 09-30-2013, was a stake in John Malone’s international holding company Liberty Global (LBTYA). The stake was disclosed as 2,948,285 shares worth $262,397,000 and thus likely a product of one of the investment managers.

Increased positions

During the quarter, Berkshire increased its position in General Electric (GE) by 9,996,602 shares to 10,585,502 worth $296,712,000 through exercising warrants in October 2013, DaVita (DVA) by 5,014,464 shares to 36,461,294 worth $2,310,522,00, United States Gypsum (USG) by 17,817,982 shares to 34,890,174 shares worth $990,184,000 and made a very small addition to Exxon Mobil (XOM) of 1,040,261 shares to 41,129,632 shares.

The smaller positions are likely to either be Weschler or Combs. The Exxon Mobil position was a well-known Buffett addition while the small change could easily be a subsidiary of Berkshire. The USG stake was created through exchanging $243.8 million of convertible notes.

Edited: Berkshire first showed a position in Goldman Sachs (GS) of 12,631,531 shares. This was related to a March 2013 announcement that Berkshire traded warrants with the rights to buy 43.5 million Goldman Sachs common shares for $115 apiece until Oct. 1 2013 for “Goldman Sachs stock equal to the difference between the average closing price during the 10 trading days before Oct. 1 and the exercise price, multiplied by 43.5 million”. The trade reduced the transaction costs and allowed Berkshire to avoid putting down over $5 billion in capital. These warrants were received as part of a shrewd preferred stock investment during the financial crisis.

Also notable, If you’re looking for the Washington Post on the 13-F, It is now known as Graham Holdings (GHC). There was no change in the position at this time.

Reduced positions

Berkshire lowered its stake in ConocoPhillips (COP) by 2,449,312 shares to 11,079,958 shares, Liberty Media (LMCA) (LMCB) by 322,340 shares to 5,300,000, Moody’s (MCO) by 252,400 shares to 24,669,778, and StarZ (STRZA) by 1,080,529 shares to 4,541,811.

Closed positions

Berkshire sold out its entire stake in Dish Networks (DISH) and GlaxoSmithKline (GSK). Both were likely positions of the investment managers.
InvestCorrectly Staff
InvestCorrectly Staff

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