The Q2 filings from leading investment funds have recently been released, shedding light on the latest moves by top investors. Here are some of the most notable trades:
Warren Buffett - Berkshire Hathaway
Warren Buffett grabbed headlines in Q2 by reducing his position in Apple (AAPL:US) by 50%, though the tech giant still represents 30% of Berkshire Hathaway's publicly listed portfolio. Additionally, Buffett fully exited his position in Paramount Global (PARA:US). Berkshire's cash reserves now stand at an impressive $276.9 billion.
Buffett continued to increase his positions in Chubb (CB:US), an insurance company, and Occidental Petroleum (OXY:US), an oil and gas producer. This marks the third consecutive quarter of increased investment into both companies, highlighting his sustained confidence in these businesses.
Ray Dalio - Bridgewater Associates
Ray Dalio also made significant adjustments in Q2, capitalising on recent weakness in Nvidia (NVDA:US) by purchasing $722 million worth of shares, making Nvidia 4.2% of his portfolio. Dalio boosted his position in Amazon (AMZN:US) with an additional $308 million in shares, as well as an increase in his Microsoft (MSFT:US) stake by $228 million, demonstrating his bullish outlook on the tech sector.
Michael Burry - Scion Asset Management
Michael Burry made headlines by completely selling off his position in physical gold (PHYS:US). However, Burry is increasingly bullish on Chinese stocks, bolstering his positions in Baidu (BIDU:US) by 87.5% and Alibaba (BABA:US) by 24%. As a result Chinese stocks now make up 45% of his portfolio. Additionally, Burry made a high-conviction buy in Shift4 Payments (FOUR:US), an American payment processing company, which now makes up 14% of his portfolio.
Daniel Loeb - Third Point
Daniel Loeb, known for his activist approach and value-oriented investment style, reduced his exposure to U.S. tech giants in Q2. He cut his stakes in Alphabet (GOOG:US), Microsoft (MSFT:US), and Meta (META:US) by 34%, 10.48%, and 11%, respectively. In contrast, he significantly increased his position in Taiwan Semiconductor Manufacturing Company (TSM:US) by 72.34%. TSM has risen over 70% year-to-date.
Bill & Melinda Gates Foundation Trust
The Gates Foundation reduced its stake in Microsoft by 4.41%. However, the Foundation continued to back Warren Buffett by increasing its position in Berkshire Hathaway (BRK/B:US) by 42.29%.
Combined value investor activity
According to Dataroma, a platform that tracks the stock picks and portfolios of top value investors like Warren Buffett, the biggest buys and sells in Q2 reveal intriguing market trends.
Among the 79 "Superinvestors" tracked, the most popular buys in Q2 were: Berkshire Hathaway (9 investors), United Health (8 investors), and Microsoft (7 investors).
On the other hand, the largest reductions were seen in Microsoft (17 investors), Alphabet (16 investors), and Meta (16 investors).
Themes at play
Tech stock divide: Many top investors are rebalancing their portfolios, trimming or exiting positions in major tech companies like Microsoft, Alphabet, and Meta. This divergence suggests that while these stocks have delivered strong performance, there are concerns about their ability to sustain momentum amid recent volatility and market pullbacks. However, some investors are seizing the opportunity to buy the tech dip, anticipating future upside.
Defensive moves: The growing investor interest in Berkshire Hathaway and UnitedHealth suggests a shift toward safer, more defensive plays. Berkshire’s broad diversification and UnitedHealth’s role as a healthcare leader signal that some investors are bracing for potential market headwinds and favouring companies with stable earnings and less exposure to economic cycles.
Sources:
Dataroma - www.dataroma.com
Hedgefollow - www.hedgefollow.com