Berkshire Hathaway's Stealth Top Ten Holding

Here's the most recent published list of Berkshire Hathaway's top investment holdings:

Company       % of Port
-------       ---------
Apple         14.63
Wells Fargo   14.54
Kraft Heinz   13.24
Bank of Amer  10.48
Coca Cola      9.60
Amer Express   7.87
Phillips 66    4.27
US Bancorp     2.44

Over the past few years, Berkshire has been making a number of smaller investments in John Malone's media empire companies. (These positions are usually attributed to Ted Weschler by the financial media, though nobody knows for sure.) Each one is small, but they add up when you put them together. While Buffett's style is to roll every subsidiary up into a huge conglomerate, Malone's style is to break his empire apart into many smaller, publicly-traded entities.

Company             % of Port
-------             ---------
Charter Comm        1.49
Liberty SiriusXM C  0.64
Sirius XM Holdings  0.39
Liberty Global A    0.38
Liberty SiriusXM A  0.31
Liberty Global C    0.13
Liberty Lilac A     0.03
Liberty Lilac C     0.01
                    ----
Total               3.38

Technically, Sirius XM (SIRI) might not be on the list of Malone companies, but Liberty SiriusXM controls 69% of SiriusXM, so I'm counting it.

If there was one John Malone company the way there is one Warren Buffett company, it would make up 3.38% of Berkshire Hathaway's portfolio, making it the eighth largest holding.

Berkshire News Briefs - 8/21/15

This was 13F week, where Berkshire Hathaway submits its portfolio changes to the SEC each quarter. As always, you can find updated holdings and activity details at Dataroma.

Berkshire Hathaway hints at new purchase, ups Charter stake (Reuters)

Warren Buffett's Berkshire Hathaway Inc on Friday said it boosted its stake in cable TV operator Charter Communications Corp, and signaled it may have another large investment planned after agreeing to buy Precision Castparts Corp in its largest-ever purchase. [...]

Berkshire kept some details about its holdings confidential. The SEC sometimes lets the Omaha, Nebraska-based company delay disclosures of new stakes so Buffett can build them quietly, rather than have investors piggyback on him before he finishes. [...]

Berkshire reported lower stakes in conglomerate Chicago Bridge & Iron Co, media company Viacom Inc and Wabco Holdings Inc, which sells braking and suspension systems for commercial vehicles.

Warren Buffett’s Berkshire Hathaway Sells Off Shares in Phillips 66, National Oilwell Varco (WSJ Moneybeat)

Warren Buffett’s Berkshire Hathaway Inc. sold off its shares in Phillips 66 and National Oilwell Varco Inc. in the second quarter, as it continued to cut its positions in energy companies amid a global supply glut that has sent crude prices into a tail spin.

Berkshire had already sold most of its stake in National Oilwell Varco in the first quarter, when it slightly raised its Phillips 66 holdings. [...]

Berkshire’s only new stake in the quarter was a 20 million share investment in auto-paint maker Axalta Coating Systems Ltd., which Berkshire bought from Carlyle Group LP for $28 a share.

Buffett’s Precision Castparts Deal Will Boost Berkshire Hathaway’s Value (Barron's)

Precision Castparts, a once fast-growing supplier to the airline industry, looks to be a good—not great—deal for Berkshire. Its profits have been pressured due to the company’s exposure to the energy industry. The shares were down 20% year to date before the Berkshire announcement, although the company has been a huge winner under CEO Mark Donegan. [...]

Berkshire is paying $235 a share, or about 19 times Precision’s earnings for the fiscal year ending March 2016. That implies an earnings “yield” of 5.5%, well above the near-zero yield Berkshire has been earning on its cash, which totaled $60 billion on June 30. Berkshire’s return could be closer to 7% initially because it will issue about $10 billion of low-cost debt to finance the deal.

After hacking scheme, it's time to rethink how companies use wire services (PR Week)

Business Wire sent an e-mail to its clients with a letter from CEO Cathy Baron Tamraz. It began, "We understand your concerns surrounding this week’s federal indictment of a global hacking…We would like to take this opportunity to provide you with the story behind the headlines."

The letter explained that government investigators asked Business Wire about fewer than 85 releases, and pointed out that no examples listed in the indictments and the SEC complaint were Business Wire releases.

"Despite our extreme vigilance, today's reality is that no one today is immune from hacking," it continued. "We want to reassure you that Business Wire’s systems are safe and secure. We continue to work closely with a leading cybersecurity firm to ensure that they remain so."

Warren Buffett's Berkshire Hathaway gets special ASX treatment in IAG deal (Sydney Morning Herald)

The Australian Securities Exchange has granted billionaire Warren Buffett's Berkshire Hathaway poll position in any future capital raisings by Insurance Australia Group, which has raised the hackles of some investors, and proxy adviser group Ownership Matters.

IAG, which has one of the biggest shareholder bases of companies listed on the local exchange, was granted a waiver that would permit Berkshire anti-dilution rights for its shares in the insurer.

The initial deal between IAG and Berkshire, which saw the insurance giant sign away 20 per cent of its business to the US group, was announced in June but not many investors were aware of the waiver. [...]

Sure, but what does that mean in layman's terms?

The hidden catch to Berkshire Hathaway’s Insurance Australia Group Ltd investment (Fool Australia)

If IAG were to issue say, one new share for every thirty held, this would normally dilute NICO who currently holds one share in every twenty (5%) on issue. However, as it has this anti-dilution protection, NICO will be entitled to buy one share for every twenty it holds.

If NICO happened to hold 10%, it would be entitled to 10% of the new shares to be issued.

Buffett-Backed Kraft Heinz Cuts 2,500 Jobs as Hees Targets Costs (Bloomberg)

Kraft Heinz Co., the food company that counts Warren Buffett’s Berkshire Hathaway Inc. as its largest shareholder, is eliminating about 2,500 jobs in the U.S. and Canada under the new management. [...]

Kraft Foods and H.J. Heinz merged in July in a deal orchestrated by Buffett and 3G Capital, which jointly controlled the ketchup company. 3G’s Bernardo Hees, who is now running the combined foodmaker, cut more than 7,000 jobs in 20 months after taking over at Heinz. Berkshire Vice Chairman Charles Munger has endorsed the job cuts, saying such measures are essential to a productive capitalist system.

The alternative to reducing staff is “what happened in Russia,” Munger said at Buffett’s annual meeting in May. “The whole damn economy didn’t work.”

How Much Is Warren Buffett’s $5 Billion Investment in Bank of America Worth Today? (Fool)

At the low point of Bank of America's post-financial crisis struggles, Warren Buffett became its biggest advocate by investing $5 billion of Berkshire Hathaway's money into the nation's second biggest bank by assets. [...]

When you include the $5 billion in preferred stock, Berkshire Hathaway's investment in Bank of America is worth a total of $12.2 billion. That equates to a 144% gain in four years -- 168% if you also account for the roughly $1.2 billion in cumulative dividend payments on its preferred stock.

How rich Warren Buffett was at your age (Business Insider)

By age 43, Buffett's personal net worth was at a high of $34 million. He used some of this capital the year prior to purchase See's Candies for $25 million, reports The Motley Fool, and it became an investment that's still profitable in 2015. But, the mid-1970s proved to be a rough period for Berkshire. By 1974, its decreasing share price lowered Buffett's net worth to $19 million when he reached 44, reports Dividend.

Never one to let his savvy investment skills fall by the wayside, Buffett was able to recover financially. By the end of the decade, he had increased his net worth to $67 million at age 47. By the close of the 1970s, the median U.S. household income was $16,530.

Berkshire News Briefs - 8/20/14

The biggest story of the week was Berkshire Hathaway's 2nd Quarter 13F filing, detailing the changes to the company's stock holdings for the period ending June 30. Here's a easy-to-read chart of the portfolio as it stands now.

This story has a run-down of all the changes in the largest holdings:

Tracking Warren Buffett's Berkshire Hathaway Portfolio - Q2 2014 Update (Seeking Alpha)

The only two entirely new positions this quarter were Now Inc. (DNOW), the National Oilwell Varco spin-off, and Charter Communications:

Warren Buffett buying into cable (RBR-TVBR)

Warren Buffet’s Berkshire Hathaway Inc. is again putting money on cable TV consolidation bets made by Liberty Media Corp. Chairman John Malone. The Oracle of Omaha’s investment company has taken a new, $366 million position in Charter Communications Inc., the Stamford, Connecticut-based cable TV company in which Malone’s Liberty Media is the largest shareholder.

A look at three portfolio moves in particular:

What’s Buffett Doing With His Money? (Wall St. Cheat Sheet)

First, Berkshire added about $340 million worth of IBM. This is not a huge transaction for Buffett, but he is adding this to an already substantial stake now valued at over $13 billion. [...] Second, Buffett has been buying Wal-Mart. While he only bought a small position in the second-quarter, I suspect that he has been buying more recently as the stock has been weak. [...] Finally, Buffett has been adding shares of Suncor — a Canadian oil company — while selling shares in ConocoPhillips and its recent spinoff Phillips 66. This is an interesting move and it probably reflects Suncor’s higher growth and the fact that Canada has a lower — 15 percent — corporate tax rate than we have in the U.S.

Berkshire Hathaway stock tops $200,000 (Yahoo/AP)

Berkshire Hathaway Class A stock, which first topped $1,000 in 1983, on Thursday surpassed $200,000. [...] The stock has had its ups and downs. The Class A shares first hit six figures in October 2006 and peaked at $151,650 in December 2007, when the Great Recession began. They fell as low as $70,050 in March 2009. On Thursday, they reached an all-time high of $202,454.99. Berkshire Hathaway has come a long way since Buffett's investment partnership started buying shares for $7 and $8 apiece in 1962. At that point, Berkshire was a New England textile company.

How Buffett Is Changing The Future Of Berkshire's Float - From Insurance To Uncle Sam (Seeking Alpha)

Insurance float is a concept that Warren Buffett has clearly explained as a source of enduring value for Berkshire Hathaway Inc. However, there are other sources of float that are becoming more important to Berkshire over time, but are not well understood by investors. Deferred tax liabilities (DTLs) are one area worthy of focus, and while I know that tax is boring, you will realize Buffett is truly a genius when it comes to float, so bear with me as I try my best to explain how it works, as it is complex. The first idea that might spring to mind for many people on deferred taxes is unrealised capital gains - to be clear, the focus of this article extends deeper than just this. Read on...

Berkshire Unit Said to Hires Two AIG Executives in Asia (Bloomberg)

Warren Buffett’s Berkshire Hathaway Inc. hired two Asia-based executives from American International Group Inc. as part of a push to expand its presence in the region, a person familiar with the matter said. Marc Breuil, AIG’s head of country operations in Hong Kong and Taiwan, and Marcus Portbury, the regional head of casualty insurance, are joining Omaha, Nebraska-based Berkshire’s specialty insurance business, said the person, who requested anonymity because there was no public announcement. Breuil will lead the company’s efforts across Asia and Portbury will be head of casualty in the region, according to the person.

Berkshire to pay U.S. civil fine for violating reporting rules (Yahoo / Reuters)

Warren Buffett's Berkshire Hathaway Inc has agreed to pay an $896,000 civil penalty to the U.S. government for having failed to timely report that it had boosted its voting stake in building products company USG Corp . [...] The government said Berkshire failed to made the necessary filing before swapping some USG convertible notes into common stock last Dec. 9. Berkshire made a corrective filing on Jan. 3, 2014, the complaint said.

Buffett Reveals Dow Chemical Position! (From 2009! It Was Old News!) (WSJ)

On a day when big hedge-fund managers were disclosing their latest positions, Warren Buffett’s Berkshire Hathaway Inc. alerted regulators Thursday to a big investment in Dow Chemical Co. It’s a position the company has held since 2009. The holding was hardly a secret: It was trumpeted by Dow at the time as one of the reasons it was able to complete a big acquisition, and Berkshire and Dow have discussed it in securities filings and public statements since. But Mr. Buffett’s firm, a sprawling conglomerate that famously employs just 25 people in its home office, admitted Thursday that a required “13G” form “was not timely filed” back when it should have been in 2009.

Vacant plant in Harrisburg has a new owner (KMTR 16)

The Monaco Coach plant has sat empty for months, but that will soon come to an end. According to Harrisburg [Oregon] City Administrator Brian Latta, RV maker Forest River Inc. has purchased the plant. Paul Eskritt with Forest River said the plant will start work in September with about 30 employees, most of whom they hope to hire locally. They plan to expand employment this winter with a second production line.

BNSF, CP improve rail service as harvest test nears (Journal of Commerce)

BNSF Railway and Canadian Pacific Railway say they are steadily reducing a backlog of grain shipments, but agricultural shippers warn the true test of whether they can handle the upcoming harvest will come quickly, in a week or two. Meanwhile, pressure from Washington, D.C., is mounting on the two railroads to make greater progress in reducing a backlog of shipments caused by the harsh 2013-2014 winter and a surge of freight. Following the U.S. Surface Transportation Board directing in late July that BNSF and CP post weekly updates on backlogged grain shipments, the U.S. regulatory agency said it will hold a public hearing on the issue in early September in Fargo, North Dakota.

Warren Buffett tips Heinz Australia into red (Australia Financial Review)

Warren Buffett, the second richest person in the United States, has inadvertently triggered a tumble into the red by the Australian operations of baked beans, baby food and soup maker Heinz. A heavy restructuring of the balance sheet at Heinz’s Australian operations and a recalibration of tax losses caused the Australian business known as Heinz Wattie’s to tumble to a loss of $12.3 million in its latest financial year.

Huge Geico Insurance Banner Falls on Fremont Home (NBC Bay Area)

One Bay Area couple can now say for certain their house is covered by insurance. A 4,000-square-foot Geico insurance banner being towed by a plane came loose and fell directly on their house Friday in Fremont.