In this article, we discuss Warren Buffett’s stock portfolio and his 5 recent buys. If you want to read about some more stocks in the Buffett portfolio, go directly to Buffett Stock Portfolio: Warren Buffett’s Recent Buys.
5. Celanese Corporation (NYSE:CE)
Number of Hedge Fund Holders: 36
Celanese Corporation (NYSE:CE) a technology and specialty materials company, manufactures and sells high-performance engineered polymers in the United States and internationally. Berkshire Hathaway bought Celanese Corporation (NYSE:CE) stock in the first quarter of 2022. At the end of the third quarter of 2022, this holding comprised 9.7 million shares worth $877.2 million. This makes up 0.29 % portion of its total investment. On November 3, Celanese Corp announced its third-quarter earnings with earnings per share of $3.94, missing the estimates by $0.03, while the revenue was $2.3 billion, up by 1.3% year-over-year, beating estimates by $40 million.
On January 5, Barclays analyst Michael Leithead maintained an Overweight rating on Axalta Coating Systems (NYSE: CE) stock and increased the price target to $30 from $28, noting that the chemicals industry is near the end of a cycle of negative earnings revisions and that Chinese demand is likely to bottom in Q1 of 2023.
Among the hedge funds being tracked by Insider Monkey, Omaha, Nebraska-based investment firm Berkshire Hathaway is a leading shareholder in Celanese Corporation (NYSE:CE) with 9.7 million shares worth more than $877 million.
In its Q3 2022 investor letter, Vltava Fund, an asset management firm, highlighted a few stocks and Celanese Corporation (NYSE:CE) was one of them. Here is what the fund said:
“We then used the money freed up to, among other things, open three new positions. The stock price declines during the Russian invasion brought a lot of good prices to the market. Out of all the possibilities we considered, we picked the stocks of Celanese (CE).
Celanese is the world’s largest producer of acetic acid and its chemical derivatives, including vinyl acetate monomers and emulsions. Their applications are used in a wide range of industries, such as automotive tobacco, coatings, construction, energy, telecommunications, food, and medical. Celanese recently closed the acquisition of a large part of DuPont’s business, which will make Celanese an even bigger player in the industry while reducing the cyclicality of its business. The acquisition is quite large and should deliver significant value to shareholders that in our view is not at all presently reflected in the share price. Celanese is a business that stands more or less aside from the main interests of most investors, but it is a company with very high returns on capital, strong free cash flow, and historically very efficient resource allocation.”
