The star investor is also withdrawing from pharmaceutical companies.
(Photo: AP)
Denver Star investor Warren Buffett’s $ 311 billion portfolio is two positions richer. The CEO of the private equity firm Berkshire Hathaway has recently joined the pharmaceutical company Royalty-Pharma and the furniture chain Floor & Decor. This emerges from a mandatory notification to the US Securities and Exchange Commission that was published on Monday evening after the market closed in New York.
At Royalty-Pharma, Buffett bought shares valued at $ 475 million. The company finances expensive clinical trials and went public last summer. The share has lost around ten percent this year.
With the investment in Floor & Decor, the 91-year-old Berkshire boss continues to believe that Americans will invest more money in renovating their homes. Floor & Decor’s paper has already gained 40 percent this year, after having increased by 80 percent in 2020. Buffett’s package is worth a good $ 100 million there.
Both stocks made a price jump after the trading day. Berkshire Hathaway’s entry is considered a seal of approval, and investors around the world follow Buffett’s investment decisions.
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Elsewhere, Buffett withdrew. He cut his shares in the pharmaceutical company Abbvie (by 30 percent) and in Briston-Myers Squibb (by 16 percent). He left the US company Merck entirely. Buffett is also withdrawing from the credit card companies Visa and Mastercard and reducing his stake by a good four and six percent.
Buffett is holding back in the stock market
Overall, however, the changes to the portfolio are manageable. For four quarters in a row Buffett has sold more shares than added new ones. To do this, he continues to buy back shares in Berkshire-Hathaway on a large scale. His largest holdings, however, remained largely constant. 70 percent of the portfolio is in four stocks: Apple, Bank of America, Coca-Cola and American Express.
Buffett manages the portfolio together with his two investment heads Ted Weschler and Todd Combs. Buffett usually does not reveal which of the three is behind which investment decision.
More: Warren Buffett is sitting on $ 143 billion in cash.