Warren Buffett’s Berkshire Hathaway (NYSE:BRKa) (NYSE:BRK.A)(NYSE:BRK.B) recently filed its latest 13F filing with the US Securities and Exchanges Commission (SEC). Investors eager to follow the footsteps of the Oracle (NYSE:ORCL) of Omaha were ecstatic to find out what the veteran billionaire stock market investor was up to in the last few months of 2020.
The 13F filing made some surprising revelations. It seems that Buffett is becoming more bullish on the energy sector while slightly losing interest in the tech sector. Let’s take a closer look at his investment moves in the last three months of 2020 and what it might mean for you.
Berkshire Hathaway’s new acquisitions Buffett was busy establishing new positions in the equity market with a few sizable new investments. Berkshire added the telecom giant Verizon (NYSE:VZ), insurance brokerage Marsh & McLennan Cos., EW Scripps, and Chevron (NYSE:NYSE:CVX).
Buffett’s investment in Chevron is of particular interest here because it shows his increasing interest in the energy sector. Buffett purchased almost 48.5 million shares of the company with a market valuation of US$4.10 billion at the time he established his position in the company.
Buying such a large position in Chevron right away makes it clear that he is confident in his choice. While an energy sector play could turn out to be lucrative, he made a confusing move in terms of his Canadian investments. Buffett also trimmed his stake in Suncor Energy (TSX:SU)(NYSE:SU) by selling 5.3 million of his shares in the company.
It is clear that Buffett is bullish on the energy sector, but it is currently unclear why he trimmed his Suncor shares at the same time.
Buffett sold Apple Another major move revealed by Berkshire’s latest 13F filing was that Buffett reduced his position in several companies. His decision to trim Suncor shares was overshadowed by the news that he also sold more than 57.1 million shares in Apple (NASDAQ:AAPL).
Unloading such a substantial amount of the iPhone manufacturer’s shares offset most of Berkshire’s cash balance involved with acquiring new positions. The Apple stake reduction left Berkshire with a holding valued at about US$120 billion at the end of 2020. Despite the significant unloading of Apple shares (NASDAQ:AAPL), the stock remains Berkshire’s biggest single stock holding.
Foolish takeaway Buffett’s move to trim Apple shares and acquire Chevron shares indicates that he is bullish on the energy sector. However, his decision to trim Suncor Energy might cast doubts on Canadian investors seeking energy sector bets like Buffett. Trimming Apple shares indicates that he might not be too big on the tech sector right now.
Perhaps he could be sticking to betting on American companies and hedging his bets on the US economy rather than looking at the energy sector across the border. You could still consider investing in Suncor shares if you agree with Buffett’s bullish stance on the energy sector, or you could wait and see why he trimmed his position in the company.
The post Warren Buffett: Buy Less Tech and More Energy appeared first on The Motley Fool Canada.
The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Motley Fool Canada 2021
This Article Was First Published on The Motley Fool
