Warren Buffett's Berkshire Hathaway Is Loading Up on These 2 Exciting Stocks: Here's Why

Last week, Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) reported its past quarterly earnings. These results were the past with Warren Buffett arsenic CEO and offered plentifulness to excavation into for insights. Operating net fell astir 30% versus the twelvemonth prior. That driblet was accompanied by a 54% driblet successful security underwriting profits, arsenic good arsenic a 25% driblet successful security concern income.

Investors sent shares sliding by respective percent points connected the mediocre news. But Berkshire's absorption squad was unfazed. "The magnitude of concern gains (losses) successful immoderate fixed 4th is usually meaningless and delivers figures for nett net per stock that tin beryllium highly misleading to investors who person small oregon nary cognition of accounting rules," Berkshire's enactment noted.

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Apart from quarterly results, however, Berkshire Hathaway did uncover a fewer nuggets that perchance amusement however its portfolio managers consciousness astir existent marketplace conditions. Two large banal purchases that the steadfast executed past 4th archer a compelling story.

The apical 10 positions by value relationship for astir 80% of Berkshire's publically traded portfolio. Within that apical 10, 2 stocks saw their positions alteration past quarter, portion 2 different stocks saw continued buying.

According to the latest filings, Berkshire purchased 2,916,288 much shares of Chubb (NYSE: CB), portion besides adding 8,091,570 further shares of Chevron (NYSE: CVX) stock. Chevron present accounts for astir 7% of the company's publically traded portfolio, portion Chubb has a weighting of astir 4%.

Berkshire heavy sold 2 stocks past quarter: a tech banal and a slope stock. Chevron and Chubb, meanwhile, are progressive successful the vigor and security sectors. I don't deliberation it's a coincidence that slope stocks are historically much delicate to economical disruptions and carnivore markets.

Tech stocks, meanwhile, collectively person immoderate of the highest valuations disposable connected the marketplace today, theoretically besides making them much delicate to marketplace downturns. By contrast, vigor stocks can really benefits from geopolitical challenges, which tin rise the terms of lipid and earthy gas. Insurance companies, meanwhile, are traditionally little volatile than the wide market, particularly compared to different fiscal stocks.