Warren Buffet’s 2024 Strategy, What’s He Buying And What’s He Selling

Last updated 05/15/2024 by

Miriam Belen-Rodriguez

Edited by

Benjamin Locke

Summary:

Warren Buffett, the chairman of Berkshire Hathaway, has navigated the 2024 stock market crash with strategic investments and sales, reflecting significant shifts in his investment strategy. Through buying new stocks at discounted rates, including those of Liberty Live Group and Atlanta Braves Holdings, and selling off stakes in companies like Activision Blizzard and General Motors, Buffett’s actions offer insights into long-term, value-driven investing amidst market volatility.

In 2024, Warren Buffett remains a major influence in investing as the leader of Berkshire Hathaway. His strategies for picking stocks and managing investments are widely followed, especially during the stock market’s ups and downs. Buffett’s focus on long-term value investing continues to guide his decisions, making him a key figure in finance.

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Who is Warren Buffet?

Warren Buffett, a professional investor, serves as the chairman of Berkshire Hathaway, a conglomerate that actively invests in and sometimes acquires undervalued companies. In 1930, Omaha, Nebraska, saw the birth of Buffett, who began his career as a stockbroker. Benjamin Graham, an investment manager who introduced the value investing approach to stock selection, significantly influenced Buffett’s early career.

Warren Buffet didn’t start off with millions of dollars from his family. With only $174,000 to his name when he launched his investment partnership in 1956, he was able to take Berkshire Hathaway from a small shop, to one of the largest powerhouses global finance has ever seen. Buffett now boasts a net worth exceeding $120 billion, making him the seventh-richest person alive. This fortune largely stems from the value investing strategies he adopted from Graham.

What is Berkshire Hathaway?

Buffett’s investment vehicle, Berkshire Hathaway, fully owns several well-known companies, including GEICO and Fruit of the Loom, and holds significant shares in various publicly-traded companies like Apple (AAPL).

The formation of Berkshire Hathaway occurred in 1955, following the merger of two 19th-century textile companies. Buffett started purchasing shares in 1962, took full control by 1965, and transformed it into a holding company for his diverse investments, initially focusing on the insurance sector before expanding. As a publicly-traded entity since before Buffett’s tenure, Berkshire Hathaway must submit quarterly SEC reports, making Buffett’s investment choices publicly known for most of his career. The anticipation for its next quarterly report is set for February 26, 2024.

Berkshire Hathaway’s shares are divided into two classes: Class A shares, known for their high price due to never having split, and the more accessible Class B shares, priced much lower. Since 1965, Buffett has been writing an annual letter to Berkshire shareholders, detailing the company’s investment logic. This investment letter is so powerful in the world of finance, that people almost consider it to be like the Quran or Bible of the investment world.

Which stocks is Warren Buffett buying?

In the latest quarter, Berkshire Hathaway revealed investments in four new stocks, listed by purchase value. Notably, two of these stocks are closely associated. The company did not increase its stakes in any existing holdings during this quarter.

Company name and symbol	Value of position	Notes
Liberty Live Group — Series C (LLYVK)	$357M	New portfolio addition. Liberty Live Group is a division of Liberty Media Corp. consisting of its investments in Live Nation (LYV).
Liberty Live Group — Series A (LLYVA)	$161M	New portfolio addition.
Sirius XM Holdings (SIRI)	$44M	New portfolio addition.
Atlanta Braves Holdings Inc. — Series C (BATRK)	$8M	New portfolio addition.

Let’s clarify a few points to avoid confusion: Liberty Media Corp. operates similarly to Berkshire Hathaway as a holding company. Its primary income comes from investments in other companies, with minimal direct operations. Liberty is divided into several divisions, each focused on investments in particular companies. For instance, the Liberty Live Group includes Live Nation shares among its minor investments.

Moreover, Liberty’s divisions issue various “series” of stocks, each trading under its unique ticker symbol. Last quarter, Berkshire Hathaway invested in two different series of stocks from the Liberty Live Group.

Additionally, Berkshire Hathaway invested in two series of stocks from another Liberty division, the Liberty SiriusXM Group (LSXMA and LSXMK). However, this was balanced by selling an equal number of shares in each series, leaving the net share count for its Liberty SiriusXM Group investments unchanged. These investments are outlined in the “holdings” table below.Another new investment by Berkshire Hathaway last quarter was in Atlanta Braves Holdings, which also adopts a multi-series stock trading structure. However, Berkshire only purchased one series of this stock.

What is Warren Buffet selling?

Warren Buffett’s Berkshire Hathaway has actively adjusted its investment portfolio, selling off its entire stake in seven companies and reducing its share count in another six during the last quarter. These strategic moves reflect significant changes in Berkshire’s investment strategy, impacting a diverse range of industries.

Company name and symbol	Value sold	Percentage of shares sold
Activision Blizzard (ATVI)	$1.2B	100%
General Motors (GM)	$848M	100%
Celanese Corp. (CE)	$621M	100%
Johnson & Johnson (JNJ)	$54M	100%
Procter & Gamble (PG)	$48M	100%
Mondelez International (MDLZ)	$42M	100%
United Parcel Service (UPS)	$11M	100%
Globe Life (GL)	$185M	67%
Markel Corp. (MKL)	$419M	66%
HP Inc. (HPQ)	$1.1B	15%
Chevron Corp. (CVX)	$783M	10%
Aon plc (AON)	$167M	5%
Amazon.com Inc. (AMZN)	$104M	5%

Warren Buffet’s 2024 analysis

In the wake of the 2024 stock market decline, Warren Buffett offers advice for investors looking to navigate these turbulent times. He advocates for the strategic acquisition of outstanding companies at reduced prices, highlighting the issue of selling stocks during a downturn. Buffett underscores the critical role of the interest rate environment in investment decisions and encourages investors to capitalize on substantial market opportunities. His approach is rooted in patience and a long-term perspective, advising against hasty investments without thorough understanding and preparation.

Buffett’s insights emphasize the importance of resilience and informed decision-making in investing. He likens interest rates to gravity’s universal impact, affecting the valuation of financial assets and guiding the attractiveness of various investment avenues. By comparing the act of selling depreciating stocks to undervaluing a home due to low offers, he illustrates the irrationality of such moves. Buffett champions the philosophy of holding investments for the long haul, akin to owning a farm, and stresses the necessity of investing within one’s realm of knowledge for enduring success in the stock market.

Key takeaways

Warren Buffett’s Berkshire Hathaway has made significant moves by purchasing stocks in Liberty Live Group, Sirius XM Holdings, and Atlanta Braves Holdings, indicating a focus on media and entertainment sectors.
The company has sold its entire stakes in seven companies, including high-profile names like Activision Blizzard and General Motors, and reduced holdings in others such as Globe Life and Markel Corp, signaling strategic portfolio adjustments.
Buffett emphasizes buying excellent companies at a discount during market downturns and criticizes the short-term strategy of selling stocks during declines.
His investment strategy remains rooted in long-term growth, patience, and investing within one’s area of knowledge, highlighting the importance of understanding the interest rate environment and seizing substantial market opportunities.

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