Billionaire Warren Buffett Buys More Apple, Sells Shares of Wal-Mart

Most investors dream of becoming billionaires one day by purchasing and selling securities on the open market, but the harsh truth is that only a few will ever manage to reach the $1 billion mark. Nonetheless, investors could at least invest like a billionaire by closely following the quarterly moves completed by billionaires like Warren Buffett. The Oracle of Omaha oversees Berkshire Hathaway, one of the most valuable corporations in the United States that owns companies like Dairy Queen, GEICO and Fruit of the Loom, as well as makes significant equity investments in a large pool of publicly traded companies.

Warren Buffett, perhaps the nation’s most revered investor and one of the richest men in the world, is the most well-known advocate of long-term investing, with the stocks he buys on the open market considered to be trading at a bargain. Mr. Buffett still reckons that his best investment was buying Benjamin Graham’s legendary book called “The Intelligent Investor,” a book any long-term-oriented investor should read. Without deviating too much from the primary purpose of this article, let’s lay out a list of noteworthy moves completed by the Oracle of Omaha during the second quarter of 2016.

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Billionaire Warren Buffett Cuts Stake in Suncor Energy Inc. (USA) (NYSE:SU)

– Shares Owned by Berkshire Hathaway (as of June 30): 22.28 Million

– Value of Berkshire Hathaway (as of June 30): $617.70 Million

Berkshire Hathaway trimmed its position in Suncor Energy Inc. (USA) (NYSE:SU) by 7.72 million shares during the second quarter of 2016, having ended the three-month period with 22.28 million shares valued at $617.70 million. The largest crude oil producer in Canada has seen its market capitalization jump by 9% since the beginning of the year. The company’s net loss for the second quarter widened by around 1% year-on-year to $559.3 million, mainly reflecting depressed crude oil prices and oil-sands production cuts in response to the forest fires in the Fort McMurray area. Suncor Energy posted oil-sands operations production of 177,500 barrels of oil a day for the second quarter, down from 423,800 barrels a day recorded for the same quarter of 2015. Nevertheless, production at the company’s oil-sands operations assets had returned to normal rates by mid-July. Steve Cohen’s Point72 Asset Management L.P. cut its stake in Suncor Energy Inc. (USA) (NYSE:SU) by 1.34 million shares during the June quarter to 1.77 million shares.

The Oracle of Omaha Boosts Stake in Apple Inc. (NASDAQ:AAPL)

– Shares Owned by Berkshire Hathaway (as of June 30): 15.23 Million

– Value of Berkshire Hathaway (as of June 30): $1.46 Billion

The multi-billion-dollar conglomerate run by Warren Buffett added 5.42 million shares of Apple Inc. (NASDAQ:AAPL) to its existing position in the company during the April-to-June period, having finished the second quarter with 15.23 million shares. The stake was worth $1.46 billion on June 30 and accounted for 1.1% of the holding company’s entire portfolio. Mr. Buffett and his team initiated a new position in the iPhone maker during the first quarter of 2016, a move that raised eyebrows because of Mr. Buffett’s well-known aversion to the technology space. Most Apple consumers and stock market participants are excited about the “iPhone 7” launch this September. Although the multitude of rumors and leaked pictures of what the soon-to-be released iPhone might look like seem to disappoint the majority, the new version of the iPhone will likely represent a major catalyst of Apple shares. Numerous consumers bought the iPhone 6 on a two-year contract back in September 2014, so this group of Apple customers will be eligible for an upgrade when the successors to the iPhone 6S and iPhone 6S plus models come out. Apple shares are 4% in the green year-to-date. Ken Fisher’s Fisher Asset Management owns 11.31 million shares of Apple Inc. (NASDAQ:AAPL) as of June 30.

Berkshire Hathaway Trims Deere & Company (NYSE:DE) Stake

– Shares Owned by Berkshire Hathaway (as of June 30): 21.96 Million

– Value of Berkshire Hathaway (as of June 30): $1.78 Billion

Warren Buffett’s Berkshire Hathaway reduced its exposure to Deere & Company (NYSE:DE) by 1.32 million shares during the three months ended June 30. The position was valued at $1.78 billion at the end of the June quarter and made up 1.4% of the firm’s overall portfolio. The shares of the manufacturer of agricultural, construction, and forestry machinery are 2% in the green thus far in 2016. The company’s worldwide net sales and revenue for the first six months of 2016 decreased by 8% year-over-year to $13.40 billion. Just recently, analysts at UBS downgraded Deere & Company to ‘Neutral’ from ‘Buy’ and cut their price target on the stock to $80 from $94, saying that “another year of low corn prices will be a drag on equipment sales.” UBS analysts “no longer see material upside to corn prices this growing season,” so farmers’ income will continue to be under pressure. Tom Gayner’s Markel Gayner Asset Management was the owner of 1.09 million shares of Deere & Company (NYSE:DE) at the end of June.

Warren Buffett Cuts Position in Charter Communications Inc. (NASDAQ:CHTR)

– Shares Owned by Berkshire Hathaway (as of June 30): 9.34 Million

– Value of Berkshire Hathaway (as of June 30): $2.13 Billion

The Oracle of Omaha also cut his firm’s position in Charter Communications Inc. (NASDAQ:CHTR) by around 9% during the June quarter to 9.34 million shares. The holding was worth $2.13 billion on June 30, constituting 1.7% of the holding company’s equity portfolio. Earlier this year, Charter Communications completed the cash-and-stock acquisition of Time Warner Cable, initially valued at around $55 billion. As part of the deal, Charter also acquired a smaller operator called Bright House Networks LLC. The combined cable giant currently represents the second-biggest broadband provider in the United States and the nation’s third-largest pay-TV company. Charter has been attempting to sign up more people for cable amid fast-intensifying competition from online-streaming services. On a reported basis, the company posted a profit of $3.07 billion for the second quarter, as compared to a loss of $122 million recorded a year ago. Stephen Mandel’s Lone Pine Capital reported ownership of 4.79 million shares of Charter Communications Inc. (NASDAQ:CHTR) through the latest round of 13Fs.

Berkshire Hathaway Reduces Stake in Wal-Mart Stores Inc. (NYSE:WMT)

– Shares Owned by Berkshire Hathaway (as of June 30): 40.23 Million

– Value of Berkshire Hathaway (as of June 30): $2.94 Billion

Berkshire Hathaway owned 40.23 million shares of Wal-Mart Stores Inc. (NYSE:WMT) at the end of the second quarter, approximately 15.01 million shares less than at the end of the first quarter of the year. The reduced position was valued at $2.94 billion on June 30 and accounted for 2.3% of Berkshire Hathaway’s equity portfolio. In early August, Wal-Mart Stores agreed to buy e-commerce startup Jet.com Inc. for $3 billion in cash and $300 million worth of Wal-Mart shares, which will be paid over time. The multi-billion-dollar deal is intended to inject new dynamism into the retail giant’s e-commerce operations, as Amazon.com Inc. (NASDAQ:AMZN)’s fast-growing e-commerce empire poses a serious threat to Wal-Mart Stores. Although Wal-Mart is among the biggest players in the U.S. e-commerce arena, the company has been struggling to keep pace with e-commerce giant Amazon. Wal-Mart’s e-commerce sales jumped a mere 7% year-on-year in the latest quarter, whereas the overall U.S. e-commerce market rose by approximately 15%. Wal-Mart shares are up 19% so far in 2016. Adage Capital Management, founded by Phillip Gross and Robert Atchinson, has 3.03 million shares of Wal-Mart Stores Inc. (NYSE:WMT) among its holdings as of June 30.

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