Warren Buffett’s Berkshire Hathaway Takes Ulta Beauty Stake, Sending Shares Up

Many investors study Berkshire’s 13F filing for a glimpse into how Buffett and his investing deputies have been thinking about the markets in recent months, even though Berkshire’s holdings may no longer reflect the dated snapshot.

None of the trades revealed Wednesday compared with the massive sales of Apple shares Berkshire made public in its quarterly report earlier this month. That filing showed Buffett’s company had sold nearly half its mammoth position in the iPhone maker in the second quarter.

The sales left Berkshire with an Apple stake worth $84.2 billion at the end of June. Buffett praised Apple at Berkshire’s annual meeting in May as he addressed sales of its shares earlier in the year.

Some investors who follow Berkshire say Apple is no longer growing at a rate that justifies its lofty valuation.

Apple traded Wednesday at about 30 times its projected earnings over the next 12 months, according to FactSet. The company disclosed earlier this month that iPhone revenue had fallen for a second consecutive quarter.

“It’s still a great business, but valuation matters,” said Darren Pollock, portfolio manager at Cheviot Value Management. “It was a relief to see that Buffett has made these huge sales.”

Berkshire sold a net $75.5 billion in stocks in the three months through June. That helped boost its mountain of cash to a record $276.94 billion, including cash equivalents.

Berkshire increased its position in Chubb by about 4.3%, according to Wednesday’s filing, further building a stake that had been a mystery investment. Berkshire had requested confidential treatment from the SEC as it established the position before finally revealing it in May.

One holding that observers know has changed since the end of the second quarter: Bank of America. Berkshire methodically trimmed its position in the bank over a number of days beginning in July.

Berkshire’s Class B shares have rallied 23% in 2024.

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