Berkshire reduces holdings of Wells Fargo and JPMorgan; adds Barrick Gold – Business & Finance
Warren Buffett’s Berkshire Hathaway Inc said on Friday it had sold shares in some of the largest U.S. banks, reducing its stake in Wells Fargo & Co and JPMorgan Chase & Co and forgoing an investment in Goldman Sachs Group Inc.
In a regulatory filing detailing its U.S.-listed investments as of June 30, Berkshire also disclosed a new $ 20.9 million equity investment valued at $ 563.6 million in Toronto-based Barrick Gold Corp. , one of the largest mining companies in the world.
Investors are watching quarterly deposits from Omaha, Nebraska-based Berkshire to see where Buffett and his portfolio managers Todd Combs and Ted Weschler see value.
Barrick shares benefited from the rise in gold prices, which set a record last week, and rose 3.2% in after-hours trading following Berkshire’s disclosure . Barrick did not immediately respond to a request for comment.
Berkshire reduced its stake in Wells Fargo by 26% in the quarter to 237.6 million shares.
Since the start of 2018, Berkshire has divested more than half of its Wells Fargo shares, which were once worth $ 32 billion but have fallen in value as the bank has been hit by customer abuse scandals. Buffett first invested in Wells Fargo in 1989.
Berkshire also reduced its stake in JPMorgan, of which Combs is a director, to 22.2 million shares by 62%, and sold its remaining 1.9 million Goldman shares.
Buffett has not given up on the banking industry, after telling investors in May that banks are well capitalized and able to withstand the coronavirus pandemic.
Berkshire still invests in several banks, including Bank of America Corp, where it invested more than $ 2 billion last month, giving it an 11.9% stake worth more than $ 27 billion. dollars.
In Friday’s filing, Berkshire said it also abandoned its investment in Toronto-based Restaurant Brands International Inc, the parent company of Burger King and Tim Hortons.
Berkshire also has more than 90 business units, including auto insurer Geico, BNSF railroad and Dairy Queen ice cream.