Warren Buffett’s firm, Berkshire Hathaway Inc, placed an unusual gamble on a technology firm in 2021, and the former is reaping the fruits of its investment in an elegant manner.
Berkshire Hathaway Inc (stock ticker: BRK) unveiled in specific documents filed with regulators on 14th February 2022 that it purchased almost 15 million shares in a gaming company, Activision Blizzard (ATVI), in the dusk of 2021.
The bid came not long before Microsoft’s (MSFT) declaration in January that it was set to take-over Activision Blizzard for USD 68.7 billion, uplifting the ATVI stock ticker to peaking levels. Activision Blizzard’s shares are surging 22.5% by far in 2022.
Berkshire Hathaway Inc calculated that its 14.7 million shares in Activision Blizzard are valued approximately at USD 975 million as of the end of 2021. At the close of trading on Monday, the ‘Call of Duty’ and ‘Candy Crush’ maker’s shares were worth USD 1.19 billion.
Berkshire Hathaway Inc’s investment was a great move by the superbly tech-hostile investor, Warren Buffett.
Buffett has long refrained from investing in technology firms as he stated that it was too hard for him to select the long-time and big-time winners in the tech industry.
The other transformations to Berkshire Hathaway Inc’s approximately USD 330 billion portfolios unveiled on Monday were more archetypal for Buffet. The firm facilitated an investment surge in oil mogul – Chevron (CVX), eradicated a stake in Teva Pharmaceuticals (TEVA) and clipped its investments in numerous other drug manufacturers.
Buffett and other Berkshire Hathaway Inc officials did not comment on the quarterly stock reports. In addition, the filings do not indicate whether one of the two investment managers of the firm made the transfers.
Archetypally, Buffett manages all the firm’s colossal investments worth over USD 1 billion individually. For instance, Berkshire Hathaway Inc’s enormous stakes in Apple (AAPL), Cocoa-Cola (KO), and Bank of America (BAC). Therefore, the magnitude of the Activision Blizzard investment implies Buffett himself made the decision.
Berkshire Hathaway Inc transformed its Chevron investment in the Q4 of 2021 when it purchased close to 10 million shares. However, the stake of 38.2 million shares prevails smaller than the 48.5 million shares it possessed when it first discovered the investment a year ago. In addition, the firm sold a considerable mass of its Chevron investment in the H1 of 2021.
Berkshire Hathaway Inc sold 42.8 million Teva Pharmaceuticals shares it possessed and clipped its holding in other pharmaceutical firms like Abbvie (ABBV), Royalty Pharma (RPRX), and Bristol Myers Squibb (BMY).
During the quarter, Berkshire Hathaway Inc also abolished a USD 266 million investment in Sirius XM Holdings Inc (SIRI).
The firm unveiled a new-fangled investment in Brazilian financial technology firm NU Holdings Ltd (NU) that went public in December 2021. Warren Buffett’s firm possessed 107 million shares of NU Holdings at the end of 2021.
In other transfers, the firm trimmed its investment in professional services firm Marsh & McLennan (MMC) and cut down its holdings in Mastercard (MA), Charter Communications (CHTR), and Visa (V).
Apart from investments, Berkshire Hathaway Inc has over 90 firms outright, including BNSF railroad, Geico insurance, and numerous other major utilities.
About Berkshire Hathaway Inc.
Berkshire Hathaway is a holding conglomerate for several businesses, including GEICO and Fruit of the Loom. CEO Warren Buffett runs the firm. Headquartered in Omaha, Nebraska, the firm was initially an entity encompassing a group of textiles milling plants.
About Activision Blizzard Inc.
Activision Blizzard Inc is one of the globe’s most colossal interactive entertainment firms, with operations throughout Europe, Asia, and North America. The firm is home to some of the most beloved entertainment franchises like Skylanders®, Call of Duty®, World of Warcraft®, Overwatch®, Candy Crush™, Bubble Witch™, and Diablo®.
The firm’s collaborative entertainment network enchants hundreds of millions of monthly active consumers in approximately 196 nations, making it one of the world’s most extensive gaming networks.