Uncle Warren buying OXY, KR and BIIB. Maybe he likes OXY's huge dividend or maybe he likes that they have the largest prime acreage in the Permian, or maybe he likes that they are the number one producer in the Permian. Or maybe he just likes their carbon capture business.
He sure didn't have to buy. He already financed them in their purchase of APC (Anadarko) to the tune of 10 billion dollars.
"By Ed Lin
Warren Buffett's Berkshire Hathaway disclosed fourth-quarter trades in a regulatory filing late Friday.
Among other investment changes, Berkshire (ticker: BRKB) initiated stakes in Biogen (BIIB) and Kroger (KR), and more than doubled its investment in Occidental Petroleum (OXY). Berkshire also slashed its stake in Travelers (TRV). Buffett's firm detailed the changes in a form it filed with the Securities and Exchange Commission.
Berkshire didn't immediately respond to a request for comment on the stock trades.
Berkshire bought at total of 648,447 Biogen shares in the fourth quarter. So far this year, the biotech's stock is up 12.2% through Friday's close, topping the S&P 500 index's 4.6% rise. Earnings have been strong, and Biogen notched a patent win earlier this month.
Kroger stock is down 2.6% year to date. The supermarket chain had invested in a smaller grocer that filed for bankruptcy in January, and Kroger will record a charge from that move.
Berkshire bought 18.9 million Kroger shares in the fourth quarter.
Buffett also bulked up on Occidental Petroleum stock in the quarter, buying an additional 11.5 million shares of the energy firm, lifting its stake to 18.9 million. Shares recently hit a multiyear low, but so far in 2020 Occidental stock has eked out a 0.9% gain. Berkshire had a hand in helping Occidental complete the acquisition of Anadarko Petroleum last year.
Travelers stock has gained 0.6% so far in 2020. Berkshire had sold nearly all its shares of the insurer in the fourth quarter, cutting its stake to 312,379 shares from 6 million.
We had noted in December that Travelers had had a mediocre 2019, and that 2020 could be the same.
Inside Scoop is a regular Barron's feature covering stock transactions by corporate executives and board members -- so-called insiders -- as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at edward.lin@barrons.com and follow @BarronsEdLin.
(END) Dow Jones Newswires
February 14, 2020 17:26 ET (22:26 GMT)." |
