Is Berkshire Hathaway secretly piling up shares in one or more companies?
backgrounds
$Berkshire Hathaway-A(BRK.A.US$ $Berkshire Hathaway-B(BRK.B.US$ CEO Warren Buffett has toured Wall Street many times and attracted the attention of professional and individual investors. Since taking office as CEO in the mid-1960s, as of the closing bell on March 14, he had a total return on his company's Class A shares (BRK.A) of 4,938,103%. For comparison, this is 146 times that of 2019. Total S&P 500 return over the same period, including dividends paid.
The friendly name “The Oracle of Omaha” isn't always correct, but his track record suggests he has a talent for finding value hidden in the invisible. This is why investors are anxiously awaiting Berkshire Hathaway's Form 13F submission to the Securities and Exchange Commission (SEC).
Berkshire Hathaway's 13F is a powerful tool for investors
13F requires asset managers for institutional investors who manage at least $100 million in assets under management to submit quarterly submissions. As of March 14, Buffett and his team held $366 billion in investment assets spread across 45 stocks and 2 index funds.
The value of 13F is that investors can easily see what Wall Street's smartest and most successful asset managers are buying, selling, and holding. These filings can provide valuable insight into stocks and trends that pique the interest of top Wall Street investors.
Here are the classified stocks Berkshire Hathaway is likely to buy
Among the remaining 13 financial stocks are a few companies that Berkshire already owns, such as Bank of America, American Express, and Citigroup, as well as JPMorgan Chase, Goldman Sachs, and Wells Fargo. There is a very low possibility that Mr. Buffett will re-enter JPMorgan Chase, Goldman Sachs, and Wells Fargo in secret, and if it is the top 3 brands currently held by Berkshire, buying movements via 13F can be seen.
This leaves you with the following seven choices:
$Morgan Stanley(MS.US$ (MS 2.24%)
Royal Bank of Canada
I've been observing Mr. Buffett's trading activities for a long time, and I can't remember a time when he showed great interest in Canadian banks, if any. Furthermore, Omaha's Oracle intends to actively participate in US landfill projects (for example, Bank of America in 2011), but European banks are not his favorite. There is a high possibility that HSBC, UBS, Toronto Dominion, and Royal Bank of Canada will be removed from discussions as a result.
Going one step further, the Berkshire investment team has just wiped out Markle and Grovelife's portfolios, which means they probably don't have a big desire to get into an internationally based insurance company like Chubb.
As a result, the two companies that meet the requirements of Warren Buffett will be Morgan Stanley and Mitsubishi UFJ Financial Group known as “MUFG.”
The possibility of Morgan Stanley as Berkshire's potential “secret” takeover cannot be ruled out. The company's valuation is 12 times the previous fiscal year's profit, and a significant portion of sales and profits are obtained from the company's wealth management division. In theory, asset management should help protect Morgan Stanley from the inevitable downturn in the US economy and the global economy.
However, the financial stock that makes the most sense for Buffett and his team to confidentially buy is MUFG.
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