In this article, we discuss the 5 stocks that Warren Buffett is Selling. If you want to read our detailed analysis of these stocks, go directly to Warren Buffett is Selling These 10 Stocks.
5. Charter Communications, Inc. (NASDAQ:CHTR)
Number of Hedge Fund Holders: 74
Percentage Decline in Stake: 20%
Charter Communications, Inc. (NASDAQ:CHTR) is one of the biggest broadband and cable providers in the US, with 32 million customers. Charter’s total revenue increased by 9.2% year over year to $13.1 billion in the third quarter of 2021, topping analyst consensus by nearly $200 million.
Kannan Venkateshwar of Barclays kept an Equal Weight rating on Charter Communications, Inc. (NASDAQ:CHTR) with a price target of $700 in November. The stock gained 4.6% in the previous year.
Between the periods of June and September, Berkshire Hathaway reduced its holdings in Charter Communications, Inc. (NASDAQ:CHTR) by 20%. The fund owned 4.2 million shares in the cable company worth $3.05 billion at the end of the third quarter. The cable company accounted for 1.04% of Berkshire Hathaway’s portfolio. Moreover, during the third quarter, 74 of the 867 hedge funds polled by Insider Monkey owned a stake in Charter Communications, Inc. (NASDAQ:CHTR).
4. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 74
Percentage Decline in Stake: 17%
Bristol-Myers Squibb Company (NYSE:BMY) is a globally-known drug manufacturer. The company grew its third-quarter revenue by 10% year on year to $11.6 billion, exceeding revenue estimates by $100 million. The increased demand for BMY’s cancer drugs, Revlimid and Opdivo, bolstered the company’s sales in Q3.
BMO Capital analyst Evan Seigerman highlighted Bristol-Myers Squibb Company’s (NYSE:BMY) immuno-oncology and hematology segments and initiated an Outperform rating on the stock. The analyst set a price target of $72 for the stock on November 18.
Warren Buffett sold 17% of Berkshire’s stake in Bristol-Myers Squibb Company (NYSE:BMY). As of the end of Q3, Berkshire Hathaway held 22 million shares of the pharmaceutical stock valued at $1.3 billion. Still, Berkshire Hathaway is the biggest shareholder of the drug company.
Of the 867 elite funds tracked by Insider Monkey, 74 were long Bristol-Myers Squibb Company (NYSE:BMY) at the end of September, up from 73 in the second quarter of 2021.
3. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 146
Percentage Decline in Stake: 7%
Even though Mastercard Incorporated (NYSE:MA) has underperformed in the past year, the payment processing network company is still one of the most popular card companies globally. The New York-based card company has been aggressively expanding into the cryptocurrency market. In October, Mastercard Incorporated (NYSE:MA) closed its acquisition of blockchain analytics firm CipherTrace.
Between the periods of June and September, Warren Buffett’s fund reduced its exposure to Mastercard Incorporated (NYSE:MA) by 7%, bringing its total holdings down to 4.28 million. This is a mere adjustment to the stake and does not represent a major sell-off.
With a total stake of $17.6 billion, 146 hedge funds owned shares of Mastercard Incorporated (NYSE:MA) at the end of the third quarter of 2021. Virginia-based asset management firm Akre Capital Management is the largest shareholder of the company holding 5.8 million shares worth $2 billion.
In its Q3 2021 investor letter, L1 Capital mentioned Mastercard Incorporated (NYSE:MA) and discussed its stance on the firm. Here is what the fund said:
“Mastercard returned to top 10. We have held Mastercard since the inception of the Fund. Over the 6 weeks to 30 September 2021, Mastercard’s share price retreated 10% and we took advantage of what we believe will be a short-term pullback in the share price to add to our investment. Recent weakness in Mastercard’s share price is most likely due to concerns about disintermediation and other pressures caused by growth in ‘Buy now, Pay later’ and other new payment offerings, as well a general market rotation away from higher growth companies in favor of more cyclical businesses.”
2. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 143
Percentage Decline in Stake: 5%
Berkshire Hathaway reduced its stake in the world’s largest payment network company Visa Inc. (NYSE:V) by just 5% in Q3. This is a mere adjustment to the stake and does not represent a major sell-off. The fund first added the credit card stock in its holdings in 2011 and now has a remaining stake of 9.56 million shares worth $2.1 billion at the end of the September quarter. Visa Inc. (NYSE:V) represents 0.72% of Berkshire Hathaway’s portfolio.
Despite negative headlines about Amazon.com, Inc. blocking UK-issued Visa Inc. (NYSE:V) credit cards, market analysts see a buying opportunity for the credit card stock. Morgan Stanley analyst James Faucette kept an Overweight rating on Visa Inc. (NYSE:V) with a $280 price target, noting that the business risk with Amazon.com, Inc. “should pass with time.”
Overall, 143 of the 867 elite funds tracked by Insider Monkey reported owning stakes in the California-based company at the end of September 2021. The total value of these stakes is $26 billion.
In its Q3 2021 investor letter, L1 Capital mentioned Visa Inc. (NYSE:V) and discussed its stance on the firm. Here is what the fund said:
“In our view, the payment network company, Visa, remains very well positioned to participate in an ever-expanding market for electronic payments. In time, ‘Buy now, Pay Later’ may have a modest impact on Visa’s transaction volumes, however, in aggregate, we believe it will have the greater effect of supporting growth in electronic payments more broadly. In the nearer term, we believe the recovery in international travel as the world gradually normalizes and learns to live with COVID-19 will be materially positive for Visa’s financial performance. eCommerce will also remain a positive key driver for Visa growth.”
1. U.S. Bancorp (NYSE:USB)
Number of Hedge Fund Holders: 42
Percentage Decline in Stake: 2%
U.S. Bancorp (NYSE:USB) is one of the biggest banks in the US, holding $567 billion in assets as of the third quarter of 2021. The bank stock is also one of Berkshire Hathaway’s oldest holdings, having been in the company’s portfolio since 2006. In Q3, the hedge fund slashed just 2% of its stake in the company, a small adjustment.
The company posted earnings in the third quarter, reporting a revenue of $5.89 billion, up nearly 2% from $5.78 billion in Q2 2021, and beating analyst consensus by $105 million. On October 15, RBC Capital analyst Gerard Cassidy maintained an Outperform rating on U.S. Bancorp (NYSE:USB) following strong Q3 results. Cassidy raised his price target for the bank stock to $66 from $62, citing the company’s well-balanced business risk and growth outlook.
U.S. Bancorp (NYSE:USB) has been on a buying spree this year. The company’s recently acquired TravelBank, a California-based fintech firm, in November. The transaction, which is estimated to be worth $8 billion, is expected to close in the fourth quarter of 2021.
The bank stock is also a good investment option for income investors as U.S. Bancorp (NYSE:USB) offers a dividend yield of 3.06%.
At the end of the third quarter of 2021, 42 hedge funds in the database of Insider Monkey held stakes worth $8.39 billion in U.S. Bancorp (NYSE:USB), up from 41 in the previous quarter worth $8.3 million.
You can also take a peek at the 10 Blue Chip Dividend Stocks with Over 8% Yield and 10 Latest Stock Picks of Billionaire Ray Dalio.
