During the second quarter of the year, Warren Buffett’s Berkshire Hathaway made moves in its investment portfolio by acquiring stakes in Ulta Beauty and Heico while significantly reducing its stake in Apple. The regulatory filing revealed that Berkshire owned approximately 690,000 Ulta Beauty shares worth $266.3 million and 1.04 million Heico shares worth $185.4 million as of June 30. The market reacted positively to the news, with Ulta Beauty shares rising 14% and Heico shares increasing by 3% in after-hours trading.
It is unclear whether Buffett himself made these purchases, as his portfolio managers Todd Combs and Ted Weschler typically handle these smaller investments. Ulta Beauty did not provide any immediate comments on Berkshire’s investment, while Heico Co-President Eric Mendelson expressed his admiration for Berkshire’s decentralized business model. Berkshire’s diverse business portfolio includes well-known consumer and retail brands such as Benjamin Moore, Dairy Queen, Duracell, and Fruit of the Loom, along with a significant stake in the grocery chain Kroger.
Ulta Beauty, headquartered in Bolingbrook, Illinois, operates over 1,300 stores across all 50 states. Berkshire’s previous involvement in the aerospace sector includes the acquisition of aircraft parts maker Precision Castparts in 2016 for $32.1 billion, which Buffett later admitted was an overpayment. Despite this, Berkshire’s interest in the industry remains strong, as evidenced by its investment in Heico. The company has demonstrated confidence in the resilience and growth potential of the aerospace sector.
The second quarter saw Berkshire selling off $77.2 billion worth of stocks, including a significant portion of its Apple holdings and investments in other companies such as Snowflake and Paramount Global. This selling spree left Berkshire with approximately $277 billion in cash and equivalents, representing a significant increase from the previous quarter. While Buffett has not confirmed any further sales of Apple stock, he has previously indicated that he expects Apple to remain Berkshire’s largest holding by year-end.
In addition to its actions involving Apple, Berkshire also sold off a considerable amount of Bank of America stock in the third quarter, totaling more than $3.8 billion. Buffett, who is approaching his 94th birthday, has been at the helm of Berkshire Hathaway since 1965. The company’s strategic moves in the investment market reflect Buffett’s long-standing approach of value investing and a keen eye for opportunities in various industries. Despite occasional missteps, Berkshire’s investment decisions continue to be closely watched by investors and analysts for insights into the broader market trends.
