[Epoch Times, April 8, 2022](The Epoch Times reporter Takasugi compiled and reported) In recent years, American billionaire and investor Warren Buffett has been holding huge amounts of cash, watching and waiting for investment opportunities. And as the stock market continues to hit record highs, he has been lamenting “it’s hard to find deals that catch my eye.”
Now, while many other investors have entered sell-off mode, he’s swooping in and buying. So what exactly happened? Which stocks did Warren Buffett just pick up?
According to Buffett’s Berkshire Hathaway, it just bought nearly 121 million shares of Hewlett-Packard (HP), worth about $4.2 billion. That gives Buffett more than 11% of the tech company.
Shares of HP jumped 14% in premarket trading on Thursday (April 7) following the news.
It’s the latest in a string of big acquisitions by Buffett over the past month. In March, Berkshire increased its stake in Occidental Petroleum and announced it would buy Alleghany Corporation insurance company for $11.6 billion.
Recall that it wasn’t so long ago that Buffett, known for his fondness for bargaining, complained that he had not been able to spot any good investment opportunities for Berkshire Hathaway.
“We have found nothing that excites us,” he said in a letter to shareholders in February.
That puts him on the sidelines of the deal frenzy during the post-pandemic economic recovery. Last year, M&A activity, driven by lower borrowing costs, reached a record high.
But now, with the outbreak of the war in Ukraine and fears that the Federal Reserve may soon withdraw support for the economy, stocks and trading are under pressure. But he seems to be more inclined to make a big shot at this time. How does Buffett make his comments?
Buffett’s conservative investing laws have generated a lot of buzz last year. Many people are asking, where is this “Oracle of Omaha”? What is he waiting for? But Berkshire Hathaway shares are still up nearly 30%, compared with a 27% gain for the S&P 500.
Things are looking better for Berkshire this year, with its stock up 15%. The S&P 500 has fallen 6% so far this year.
A big reason is that Buffett has been focusing on the energy sector, even as other high-profile investors have attempted a so-called “green makeover” of their portfolios. Shares of energy companies have soared this year as prices for oil, gas and coal have soared.
In addition to its nearly 15% stake in Occidental, Berkshire also owns a substantial stake in Chevron. Occidental’s shares rose 96% in the first quarter, while Chevron rose nearly 40%.
Berkshire also has a sizable energy subsidiary that owns leading power companies such as PacifiCorp and MidAmerican, as well as oil and gas pipeline companies and several renewable energy companies.
Berkshire Vice Chairman Greg Abel oversees Berkshire Energy and the company’s other non-financial businesses. Last year, he was nominated to eventually succeed Buffett, now 91, as Berkshire’s CEO.
Responsible editor: Ye Ziwei#