The Blubber

Berkshire Hathaway has noted that it had omitted at least one holding from its recent report, writing that it had requested confidential treatment from the Securities and Exchange Commission.

Warren Buffett's Berkshire Hathaway significantly reduced its stakes in several prominent U.S. companies in the third quarter, as the billionaire investor shifted billions of dollars from the conglomerate's extensive stock portfolio into cash.

During the quarter ending September, the company revealed it had divested its remaining holdings in General Motors, which had been valued at approximately $850 million in the previous quarter. Berkshire also liquidated a small position of 59,400 shares in logistics firm UPS, cut its ownership of computer and printer manufacturer HP by 15%, resulting in a reduction in value exceeding $1 billion, and decreased its stock holdings in oil giant Chevron by 10%.

Additionally, Berkshire sold off minor positions in Johnson & Johnson and Procter & Gamble, each valued at around $50 million at the close of the second quarter. Notably, a Berkshire-owned asset manager, New England Asset Management, retained shares in both companies at the end of September, as revealed in separate filings.

The divestitures extended to shares in Amazon, snack-food producer Mondelez International, and insurers Markel and Globe Life. Berkshire also exited Activision Blizzard, concluding a merger arbitrage bet on the successful completion of the video game publisher's sale to Microsoft amid antitrust scrutiny. This deal concluded in early October.

These sales contributed to Berkshire's net divestments of publicly traded stocks, amounting to nearly $40 billion over the past year. Buffett opted for short-term Treasury bills yielding over 5%, leading to a record cash position of $157 billion by the end of September. This increase was driven by higher interest on its cash and Treasury portfolio, along with robust operating earnings from the myriad businesses it owns.

In its disclosure, Berkshire acknowledged omitting at least one holding from the report, citing a request for confidential treatment from the Securities and Exchange Commission, a move the company has occasionally made with significant investments.