Emulating great investors can be a source of inspiration, but it is not a foolproof strategy. The most important thing is to develop your own investment approach, based on a solid understanding of the financial markets and your own financial goals. However, analyzing the moves that great managers like Warren Buffett and Michael Burry can shed some light on what they are seeing at a given point in the market.
Buffett’s Berkshire Hathaway’s latest Form 13-F filing has once again captured the attention of investors around the world, offering a look at the company’s latest strategic decisions and market outlook. Oracle of OmahaThe guru’s new investments in Heico Corporation and Ulta Beauty signal a strategic move into aerospace and retail, highlighting his continued diversification efforts.
While significantly increasing his stake in Sirius XM and other key holdings, Buffett also sharply reduced his position in Apple, reflecting a cautious approach amid market uncertainties.
Despite exploring new opportunities and markets, Buffett’s recent moves reaffirm his adherence to his time-honored investment principles: long-term focus, value investing and disciplined decision-making, proving that his core strategies remain as relevant as ever.
Buffett’s new income
Buffett initiated new positions in two companies that signal a move into different sectors. His purchase of $1.4 million of Heico Corporation (HEIA) stock and $69 million of Ulta Beauty (ULTA) stock show his interest in both aerospace and retail. The Ulta Beauty stake, valued at about $260 million, marks a relatively small position for Berkshire Hathaway, but it hints at Buffett’s belief in the strength of the beauty retail sector.
Aggressive Buying: Doubling the Bet
Buffett’s aggressive accumulation of Sirius XM Holdings (SIRI) stock stands out as one of the most significant moves. He expanded his stake from $36.68 million to $132.88 million in shares, a massive vote of confidence in the satellite radio company. His holdings were valued at $376 million at the end of the second quarter. Additionally, Buffett increased his holdings in Occidental Petroleum (OXY), Liberty Media Corporation Series A and C (LSXMA, LSXMK), and Chubb Limited (CB), further solidifying his commitment to these industries.
However, in true Buffett fashion, many of his core holdings remain intact. He continues to hold substantial positions in mainstays such as Bank of America (BAC), Coca-Cola (KO), Kraft Heinz (KHC), American Express (AXP), Citigroup (C), DaVita (DVA) and Moody’s (MCO). These consistent holdings reflect his long-term confidence in these companies’ ability to generate value over time.
Strong exits
Perhaps the most surprising moves were his complete exits from Paramount Global (PARA) and Snowflake Inc. (SNOW). Buffett had previously stressed that his stake in Paramount was a rare bet gone wrong, and admitted selling all of the company’s stock at a loss. The Snowflake stock sale underscores a potential reassessment of the data storage company’s growth prospects.
Buffett’s decision to drastically reduce his stake in Apple Inc. (AAPL) from 789.37 million shares to 400 million is notable. While he had disclosed part of this sale previously, this massive cut signals a more cautious approach to one of his most iconic holdings. Additionally, he reduced positions in Chevron (CVX), Capital One (COF), Floor & Decor (FND), Louisiana-Pacific Corporation (LPX) and T-Mobile US (TMUS).
Michael Burry and his exposure to Chinese companies
Michael Burry, famous for the book and film “The Big Short,” increased his holdings of Chinese stocks, including Alibaba and Baidu, at the end of the second half of the year, according to a report filed with the Securities and Exchange Commission (SEC) on Wednesday.
An investment in Alibaba (BABA) worth more than $11 million was Burry’s largest holding as of June 30. His firm, Scion Asset Management, has been increasing its holdings in the Chinese e-commerce giant in recent quarters, owning 155,000 shares, according to the report. This stock was also his firm’s largest holding at the end of the first quarter.
Burry also increased the size of his bet on Baidu (BIDU) by more than 30,000 shares, worth $2 million. He owned 75,000 shares worth $6.5 million as of June 30, according to the report. Separately, Burry reduced his stake in JD.com Inc. (JD), another Chinese internet company, by 110,000 shares, worth just over $3 million, though the stock remains one of the largest holdings in his portfolio.
Molina Healthcare (MOH), a California-based managed healthcare services provider, and Shift4 Payments Inc. (FOUR) are also among the top holdings listed in the report. Burry also trimmed or eliminated a number of positions, including investments in Citigroup Inc. (C) and Block Inc. (SQ).
This is all the more striking given that Chinese stocks have mostly lagged their U.S. and Japanese rivals in 2024, apart from a short-lived rally earlier in the year. Alibaba’s U.S.-listed American depositary receipts (ADRs) had gained less than 3% in 2024 as of Wednesday afternoon, according to FactSet data.
It is worth remembering that The SEC requires all institutional investment managers holding more than $100 million in certain securities to disclose their positions in 13-F reports.
These reports typically provide a snapshot of a company’s stock and ETF holdings as of the last day of the quarter, while also providing some information about stock option positions. The SEC requires investors to disclose positions in a handful of types of securities and derivatives considered 13-F securities. Disclosure of private company holdings, short positions and cash holdings is not required.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
