Traders proved the Warren Buffett bump is alive and well as shares in furniture company RH, formerly Restoration Hardware, made a big jump after it was revealed the billionaire investor’s firm, Berkshire Hathaway, now owns a stake in the company.
A Securities and Exchange Commission filing revealed Berkshire was holding 1.2 million shares of RH (RH) at the end of the third quarter, and it sent shares soaring nearly 8% in pre-market trading Friday. It was another boost to the stock that has seen 41% gains in 2019.
Some quick math shows Berkshire’s stake in RH to be worth around $210 million.
Buffett’s company apparently also has taken a liking to oil company Occidental Petroleum (OXY), as the filing showed a new $332 million stake. The nearly 7.5 million shares are part of helping finance Occidental’s acquisition of Anadarko. Berkshire invested $10 billion in the Occidental deal during the quarter. Shares were trading 2.7% higher in pre-market trading.
What Warren Buffett’s Berkshire Hathaway Is Selling
Buffett reduced his company’s stake in Wells Fargo (WFC) by about 31 million shares, or 7.7%, to 378 million. In the past, he has sold some Wells Fargo stock to keep Berkshire’s stake below 10%, even after the bank’s stock repurchases.
The company also trimmed its Apple Inc. (AAPL) holdings from 249.6 million to 248.8 million, but the iPhone maker is still Berkshire’s largest single investment.
Berkshire also trimmed shares of Phillips 66 (PSX) by 6.7%, but it’s still holding 5.2 million shares that are worth about $530 million.
Buffett and Berkshire’s position didn’t change on these companies: Bank of America Corp. (BAC), Bank of New York Mellon (BK), The Coca-Cola Co. (KO) and Delta Air Lines Inc. (DAL). It also still has 325 million shares of The Kraft Heinz Co. (KHC), which has been a noted blunder in Berkshire’s portfolio.
Investors follow what Berkshire buys and sells closely because of Buffett’s successful track record. Berkshire officials don’t generally comment on these quarterly filings.
The quarterly filings also don’t make clear who made what investments. Buffett handles the biggest investments in Berkshire’s portfolio, such as Coca-Cola, Apple and Wells Fargo. He has said that investments of less than $1 billion are likely to be the work of Berkshire’s two other investment managers.
The Associated Press contributed to this report.