Warren Buffett has a long term investing approach that brings him immense success. Investors look to Buffett when wondering what stocks they should be buying, but maybe there should be more of a focus on what he is selling!
Warren Buffett’s conglomerate Berkshire Hathaway, and all companies with over $100 million in qualifying assets, complete a Securities and Exchange Commission (SEC) Form 13F quarterly each year. The form basically outlines everything that has either been acquired or sold during that quarter.
In the most recent 13F, when studying what Berkshire Hathaway is has been deciding recently, it seems that Buffett is losing interest in Wal-Mart, Suncor Energy, and even Deere & Co.
After the third quarter, Berkshire Hathaway had decreased it’s stake in Wal-Mart by almost 70%, leaving Wal-Mart with 13 million shares available. While there are a number of reasons that Buffett could be considering selling the stock, one being Wal-Mart’s advocacy for an increased minimum wage, Buffett made a comment in April of this year that internet sites— such as Amazon— are becoming increasingly difficult to compete with. With the holiday season creeping in, Buffett quickly jumped out of his Wal-Mart stock. Will we see Amazon pop up on the next 13F?
It looks like after selling 7.7 million shares of Suncor Energy during the second quarter, Buffett decided to finish it out and sell the rest during the most recent quarter. There are a couple of different speculations as to why Buffett has lost interest in this stock, the most likely being that American oil is expected to be consistently priced in the near future, since U.S. oil production has increased. Not to mention, in the last year Canadian company Suncor Energy suffered a net loss of $1.6 billion.
Deere & Co.
While Warren Buffett has sold some Deere & Co. stock, it’s no where near the speed he is selling the previous two. Buffett has reduced his stake in Deere & Co by less than 4%, and still remains the largest institutional investor. Deere & Co. has been experiencing some slow-down in it’s profits, though it looks like Buffett plans on waiting it out for a while.
Warren Buffet doesn’t claim to know it all, and has openly admitted to past mistakes, but as one of the richest men in the world plenty of people look to him for advice! Now that we are aware of what he is selling, and speculating the reasons why, we just have to wait for the fourth-quarter’s 13F to see what Buffett is up to!