Latest Warren Buffett’s Stock Buys; The Rationale Behind Them
Savvy investors tend to follow the strategies of Hedge funds like Berkshire Hathaway, owned by Warren Buffett. Some recent buys of Berkshire Hathaway are Chevron Corp, Nu Holdings, and Activision Blizzard. 
Precious Njoku is a Financial Writer with extensive knowledge about the stock market.
2022-04-16 11:16

Although statistics have shown that most hedge fund managers do not beat the market. I also don't follow buys just any self-acclaimed great investor. With quality research, any individual can make excellent financial choices. However, I still reserve my respect for some who have proven themselves over time to stay ahead of the market.
Latest Warren Buffett’s Stock Buys; The Rationale Behind Them
For these successful hedge funds, they employ smart and intelligent financial analysts and investors who know the stock market well. That is why they make extraordinary returns. Their investment strategies are unusually unconventional. Their activities are shrouded in secrecy, but any investor can follow their buying and selling strategies. According to The Securities And Exchange Commission (SEC) rules, fund managers must disclose their stock holdings through a form 13F. This form is publicly available to anyone interested in investigating these hedge funds.

As a result, I still compare my investment strategies to theirs and see if I can get a glimpse into the industry's best buying and selling habits by investigating these hedge funds. One of such hedge funds that have proven itself is Berkshire Hathaway Inc (NYSE: BRK.A). Berkshire Hathaway has Warren Buffett, the Oracle of Omaha, as the founder and is one of the largest and most successful hedge funds. The company is worth $713 billion.

This article will take a peek into some of Warren Buffett's recently bought stocks and try to understand the rationale. If the fundamentals are great, then what stops us from taking a solid position?!

Chevron Corp. (NYSE: CVX)
Warren Buffett first bought Chevron's stock while the pandemic was raging, and Chevron Corp (NYSE: CVX)reported a fourth-quarter loss of $665 million in 2020. As if he could forecast the future, the stock has been on a roller coaster ride since then. Buffett reduced his holdings in the first and second quarters of 2021, but he recently bought more stock.

Warren Buffett was inspired to buy more Chevron stock for two reasons. First is the global energy crisis that started at the beginning of 2022 and the Russian invasion of Ukraine in February. These events changed Buffett's mind. That was why he increased his stake in Chevron to 33% by buying about 9.5 million shares of the stock. He now has a $4.5 billion stake in the company.

Nu Holdings Ltd (NYSE: NU)
Warren Buffett bought shares of Nu Holdings (NYSE: NU)when it was still a private company. That was in June 2021. He purchased it through a private fundraising round and invested $500 million in the company. Then, in December 2021, the Brazilian digital bank made its Initial Public Offering (IPO),which attracted Warren Buffett.

Buffett doesn't regularly invest in IPOs, but he believes Nu Holdings is an exceptional company. That was why during the IPO, he bought 30 million more shares of the company. The IPO price was $9 per share. Nu has been struggling since its IPO, and its share price now stands at $7.16 per share. But the company is attractive to investors. Moreover, it has a good percentage of the Brazilian and Latin American financial markets.

Berkshire’s filing with the SEC on Form 13F for March shows that Buffett’s stake in the company is now worth $1 billion, and he has about 107.1 million shares.

Activision Blizzard Inc. ($74.7|0.49%)
You can recognize sages by their results and insight. Towards the end of last year, two investment managers in Berkshire Hathaway recommended that the company buy the shares of Activision Blizzard Inc. Warren Buffett acted on their recommendations and bought nearly $1 billion worth of shares of the stock at $77 per share. Some weeks after the buy, Microsoft announced that it was purchasing the company in a buyout deal worth $68.7 billion at $95 per share. Within hours, Warren Buffet had made more than a billion dollars.

From the filings by Berkshire Hathaway in Form 13F in March, Warren Buffett owns about 14.7 million shares of Activision Blizzard Inc’s stock, ATVI, worth close to $1 billion.

I, however, have no issues with these recent buys. The energy crisis still rages on as the Ukraine-Russian war continues. The world has shown that it hasn't moved passed its dependency on crude oil. Chevron, a major energy player still has room for growth. Chevron's Q1 2022 earnings report is expected to be released on the 29th of April. If it can surpass its expected EPS of $3.49, I see a massive uptrend.

For ATVI, the Microsoft takeover is much of a relief. Warren may not have envisaged a Microsoft buyout deal with ATVI, but those are the unseen forces that contribute to his successes. I see Microsoft using ATVI as a way to expand its metaverse dream. And if this pulls off successfully, then expect ATVI to be a large-cap company in the long term.

Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Rate this article

Published On
2022-04-16 11:16

About the Author
Precious Njoku is a Financial Writer with extensive knowledge about the stock market.

You've read 1 article in the last year
..thank you for supporting us and for visiting our site. Unlike many other sites, The Dog of Wall Street is available for everyone to read. Our focus is to provide great content for free. Do you like what we are doing? Buy us a cup coffee. It is the fuel that keeps us going..

3 Final Earnings I'm Watching For the Coming Week
There are still some major companies reporting this week.
By Mike Sakuraba | 4 weeks ago

Don’t Be Caught In The Bed and Beyond Meme Stock Madness!
Meme stock valuation depends on the hype, not the stock's fundamentals.
By Precious Njoku | 1 month ago

Stocks Buffett's Berkshire Hathaway (BRKB) Sold Off This Year
This year, Warren Buffett has sold a considerable number of stocks.
By Precious Njoku | 1 month ago

BBBY Short Squeeze: Have We Learned Our Lesson Yet?
Ryan Cohen Does Not Owe Us Anything.
By Mike Sakuraba | 1 month ago

Why Electric Vehicle Stocks Have an Uphill Climb
Rivian Cancels Pre-Orders, Short Seller Bets Against Tesla.
By Mike Sakuraba | 1 month ago

3 More Earnings to Focus On Next Week
Here are actually a few major companies that will be reporting next week.
By Mike Sakuraba | 1 month ago

Why Softbank's Sale of Alibaba Stock was a Good Move
Softbank Group Corp. (OTCMKTS: SFTBY),a Japanese multinational company, has gained much reputation over the years for investing in startups and making money.
By Precious Njoku | 1 month ago