Warren Buffett s Berkshire Hathaway Slashes Stake in U S Bancorp Kiplinger
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A long-time financial journalist, Dan is a veteran of SmartMoney, MarketWatch, CBS MoneyWatch, InvestorPlace and DailyFinance. He has written for The Wall Street Journal, Bloomberg, Consumer Reports, Senior Executive and Boston magazine, and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among other publications. As a senior writer at AOL's DailyFinance, Dan reported market news from the floor of the New York Stock Exchange and hosted a weekly video segment on equities.
Once upon a time – before his days as a financial reporter and assistant financial editor at legendary fashion trade paper Women's Wear Daily – Dan worked for Spy magazine, scribbled away at Time Inc. and contributed to Maxim magazine back when lad mags were a thing. He's also written for Esquire magazine's Dubious Achievements Awards.
In his current role at Kiplinger, Dan writes about equities, fixed income, currencies, commodities, funds, macroeconomics and more.
Dan holds a bachelor's degree from Oberlin College and a master's degree from Columbia University.
Disclosure: Dan does not trade stocks or other securities. Rather, he dollar-cost averages into cheap funds and index funds and holds them forever in tax-advantaged accounts. Latest Student Loan Forgiveness Blocked For Now Due to Court Ruling For now, a Texas federal court ruling has caused the Biden administration to block new applications for student loan forgiveness. By Kelley R. Taylor • Published 11 November 22 What is ESG? ESG means investing in a way that considers a company's environmental, social, and governance profile. But will ESG help you meet your investment goals and deliver impact? By Ellen Kennedy • Published 11 November 22 You might also like Stock Market Today: Stocks Rise Ahead of Midterms The Dow outperformed thanks to a major M&A-related boost for drugstore chain Walgreens Boots Alliance. By Karee Venema • Published 7 November 22 Warren Buffett's Berkshire Hathaway Still a Buy After Q3 Earnings Warren Buffett's holding company reported third-quarter earnings over the weekend and the results were impressive. By Dan Burrows • Published 7 November 22 Buffett Is Loading Up on Occidental Petroleum Stock (OXY). Should You? stocks Warren Buffett is buying OXY stock with both fists, but retail investors should think twice before blindly following the Oracle's lead. By Dan Burrows • Published 30 September 22 Buffett Buys More Apple, Chevron, Occidental Petroleum, in Q2 stocks to buy Warren Buffett's Berkshire Hathaway topped off existing stakes in some favorite stocks, cut exposure to General Motors and Kroger, and exited its rump position in Verizon. By Dan Burrows • Published 15 August 22 Buffett Goes on Buying Spree as Stock Market Reels Warren Buffett Berkshire Hathaway's latest earnings report showed the Oracle of Omaha was a net buyer of stocks in Q2 as the broader market sold off. By Dan Burrows • Published 8 August 22 The 10 Best Stocks for a Bear Market stocks to buy The ideal bear-market stock pick should have a defensive business, a long history of dividend growth and relatively low volatility. Here are 10 stocks that fit that bill. By Dan Burrows • Last updated 13 June 22 15 Stocks Warren Buffett Is Buying (And 7 He's Selling) stocks Berkshire Hathaway CEO Warren Buffett is a bull once more! The Oracle and his team entered eight new positions and added to others in a big way. By Dan Burrows • Published 17 May 22 Warren Buffett's Inflation Plan: Buy, Buy, Buy Warren Buffett The Oracle of Omaha seized upon equity dips during a Q1 spending spree, but inflation also was a clear driver of several Buffett purchases. By Dan Burrows • Published 4 May 22 View More ▸ kiplinger About Us (opens in new tab) Terms and Conditions (opens in new tab) Privacy Policy (opens in new tab) Cookie Policy (opens in new tab) Kiplinger is part of Future plc, an international media group and leading digital publisher. Visit our corporate site.
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Warren Buffett s Berkshire Hathaway Slashes Stake in U S Bancorp
Warren Buffett's holding company continued to lower its exposure to financial stocks, more than halving its stake in USB. (opens in new tab) (opens in new tab) (opens in new tab) Newsletter sign up Newsletter (Image credit: Getty Images) By Dan Burrows last updated 11 November 2022 Warren Buffett's Berkshire Hathaway (BRK.B (opens in new tab), $303.20) cut its stake in longtime holding U.S. Bancorp (USB (opens in new tab), $44.87) by more than half. Buffett, who serves as Berkshire Hathaway's chairman and CEO, has been slashing his holding company's exposure to financial stocks – and bank stocks in particular – for years. And although the U.S. Bancorp position hasn't been immune to some recent downsizing in the Berkshire Hathaway equity portfolio, Buffett has left it mostly intact. Inflation Cools in October: What the Experts Are Saying That is, until now.Subscribe to Kiplinger s Personal Finance
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Profit and prosper with the best of Kiplinger's expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail. Profit and prosper with the best of Kiplinger's expert advice - straight to your e-mail. Sign up Berkshire Hathaway sold 56% of its position in the nation's fifth largest bank by assets, a new regulatory filing (opens in new tab) revealed. Buffett's conglomerate now holds 52.5 million USB shares, or 3.5% of the regional lender's shares outstanding. That's down from an ownership stake of 8.1% prior to the sales. Berkshire Hathaway's USB stock was worth $2.4 billion as of Thursday's close, and now accounts for just 0.7% of the Berkshire Hathaway equity portfolio. That's down from 1.8% before Buffett slashed the stake. Berkshire, formerly the bank's largest shareholder, now drops to fourth place behind asset management giants Vanguard, BlackRock and State Street Global Advisors.Buffett First Bought USB in 2006
Not to get sentimental or anything, but U.S. Bancorp is one of the oldest holdings in the Berkshire Hathaway portfolio. Warren Buffett first bought shares in the nation's largest regional lender in the first quarter of 2006. And while he has always been tight-lipped about the USB position, Buffett's actions over the past few quarters have hinted that something like this might be in the offing. After all, Buffett clipped Berkshire Hathaway's USB stake by 5%, or 6.6 million shares, in the second quarter of 2022. He also pared the stake in each of the first three quarters of 2021. 5 Best Consumer Staples Stocks to Buy Now True, Buffett had been gradually reducing Berkshire Hathaway's exposure to USB. But those scissorings stood in stark contrast to what he's done with so many of Berkshire's other bank stocks. Mostly, he's taken a hatchet to them. In just a sample of moves, Berkshire Hathaway dumped what was left of its stake in Wells Fargo (WFC (opens in new tab)) in the first quarter of 2022, and exited positions in JPMorgan Chase (JPM (opens in new tab)), Goldman Sachs (GS (opens in new tab)), PNC Financial Services (PNC (opens in new tab)) and Travelers (TRV (opens in new tab)) over the past couple of years. To be sure, Warren Buffett is by no means done with big bank stocks. Bank of America (BAC (opens in new tab)) is Berkshire Hathaway's second largest holding after Apple (AAPL (opens in new tab)). The nation's second largest bank by assets accounts for 10.2% of Berkshire's total portfolio value. Berkshire Hathaway also owns 55.2 million shares in Citigroup (C (opens in new tab)), a position that Warren Buffett initiated in the first quarter of 2022. At 0.8% of the portfolio, Citigroup is one of Berkshire Hathaway's 15 largest investments. Other financial sector stocks in the Berkshire Hathaway equity portfolio include American Express (AXP (opens in new tab)), Bank of New York Mellon (BK (opens in new tab)), Mastercard (MA (opens in new tab)), Visa (V (opens in new tab)) and Ally Financial (ALLY (opens in new tab)), among others.What This All Means
The bottom line is that U.S. Bancorp stock is a long-time market laggard, and so perhaps we shouldn't be too surprised that Warren Buffett decided it was time to dramatically lighten up on the position. We'll learn more of what the world's greatest long-term investor has been up to when Berkshire Hathaway reports its third-quarter buys and sells on Monday, Nov. 14. For now, all we can say for certain is that Berkshire Hathaway stock has been a market-beating buy this year. Operating earnings expanded 20% in the third quarter, helping to bolster BRK.B's case as one of the best stocks to buy for a bear market. It's also fair to assume that this isn't good news for USB stock. If Warren Buffett's recent history with big banks stocks offers any sort of guide, Berkshire Hathaway might be putting even more USB shares on the market soon. 5 Best Dow Dividend Stocks to Buy Now Explore More Berkshire Hathaway Cl B (BRK.B) U.S. Bancorp (USB) Dan BurrowsSenior Investing Writer, Kiplinger.comDan Burrows is a financial writer at Kiplinger, having joined the august publication full time in 2016.A long-time financial journalist, Dan is a veteran of SmartMoney, MarketWatch, CBS MoneyWatch, InvestorPlace and DailyFinance. He has written for The Wall Street Journal, Bloomberg, Consumer Reports, Senior Executive and Boston magazine, and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among other publications. As a senior writer at AOL's DailyFinance, Dan reported market news from the floor of the New York Stock Exchange and hosted a weekly video segment on equities.
Once upon a time – before his days as a financial reporter and assistant financial editor at legendary fashion trade paper Women's Wear Daily – Dan worked for Spy magazine, scribbled away at Time Inc. and contributed to Maxim magazine back when lad mags were a thing. He's also written for Esquire magazine's Dubious Achievements Awards.
In his current role at Kiplinger, Dan writes about equities, fixed income, currencies, commodities, funds, macroeconomics and more.
Dan holds a bachelor's degree from Oberlin College and a master's degree from Columbia University.
Disclosure: Dan does not trade stocks or other securities. Rather, he dollar-cost averages into cheap funds and index funds and holds them forever in tax-advantaged accounts. Latest Student Loan Forgiveness Blocked For Now Due to Court Ruling For now, a Texas federal court ruling has caused the Biden administration to block new applications for student loan forgiveness. By Kelley R. Taylor • Published 11 November 22 What is ESG? ESG means investing in a way that considers a company's environmental, social, and governance profile. But will ESG help you meet your investment goals and deliver impact? By Ellen Kennedy • Published 11 November 22 You might also like Stock Market Today: Stocks Rise Ahead of Midterms The Dow outperformed thanks to a major M&A-related boost for drugstore chain Walgreens Boots Alliance. By Karee Venema • Published 7 November 22 Warren Buffett's Berkshire Hathaway Still a Buy After Q3 Earnings Warren Buffett's holding company reported third-quarter earnings over the weekend and the results were impressive. By Dan Burrows • Published 7 November 22 Buffett Is Loading Up on Occidental Petroleum Stock (OXY). Should You? stocks Warren Buffett is buying OXY stock with both fists, but retail investors should think twice before blindly following the Oracle's lead. By Dan Burrows • Published 30 September 22 Buffett Buys More Apple, Chevron, Occidental Petroleum, in Q2 stocks to buy Warren Buffett's Berkshire Hathaway topped off existing stakes in some favorite stocks, cut exposure to General Motors and Kroger, and exited its rump position in Verizon. By Dan Burrows • Published 15 August 22 Buffett Goes on Buying Spree as Stock Market Reels Warren Buffett Berkshire Hathaway's latest earnings report showed the Oracle of Omaha was a net buyer of stocks in Q2 as the broader market sold off. By Dan Burrows • Published 8 August 22 The 10 Best Stocks for a Bear Market stocks to buy The ideal bear-market stock pick should have a defensive business, a long history of dividend growth and relatively low volatility. Here are 10 stocks that fit that bill. By Dan Burrows • Last updated 13 June 22 15 Stocks Warren Buffett Is Buying (And 7 He's Selling) stocks Berkshire Hathaway CEO Warren Buffett is a bull once more! The Oracle and his team entered eight new positions and added to others in a big way. By Dan Burrows • Published 17 May 22 Warren Buffett's Inflation Plan: Buy, Buy, Buy Warren Buffett The Oracle of Omaha seized upon equity dips during a Q1 spending spree, but inflation also was a clear driver of several Buffett purchases. By Dan Burrows • Published 4 May 22 View More ▸ kiplinger About Us (opens in new tab) Terms and Conditions (opens in new tab) Privacy Policy (opens in new tab) Cookie Policy (opens in new tab) Kiplinger is part of Future plc, an international media group and leading digital publisher. Visit our corporate site.
© Future US, Inc. Full 7th Floor, 130 West 42nd Street, New York, NY 10036.