Warren Buffett's investing style is the stuff of legends.
When the Oracle of Omaha makes a market move, people pay attention and follow. So what does it mean when his holding company, Berkshire Hathaway (BRK.B) -), liquidates some of the most-well known holdings in its portfolio.
Related: High-profile billionaire lets a big secret slip about Warren Buffett
Berkshire disclosed its latest moves in a 13F filing with the Securities and Exchange Commission on Tuesday evening as is required by law quarterly for institutional investors managing more than $100 million.
The firm was a net seller of stocks in the quarter, selling nearly $7 billion worth of shares while buying $1.7 billion in the third-quarter. Through September, Berkshire has unloaded $23.6 billion of stocks after reporting net purchases of $48.9 billion through the same period a year ago.
Berkshire eliminated its stake in U.S. automotive staple General Motors (GM) -) and Johnson & Johnson (JNJ) -). It also sold off smaller positions in Mondelez International (MDLZ) -), United Parcel Service (UPS) -) and consumer products conglomerate Procter & Gamble (PG) -).
The company also trimmed its holdings in Amazon (AMZN) -), and Chevron (CVX) -) as well as others.
Buffett's investing style is blue chip heavy as nearly 80% of Berkshire's portfolio was represented by just five companies: Apple (AAPL) -), Bank of America (BAC) -), American Express (AXP) -), Coca-Cola (KO) -) and Chevron.
Berkshire had a solid third-quarter, ending the period with a record cash pile of $157.2 billion, up from the $147.4 billion in reported at the end of the second-quarter and above the $149.2 billion record the company set two years ago.
Most of that money was held in short-term U.S. Treasury bills while investment income increased by $1.3 billion year over year, according to a recent filing.
Berkshire Hathaway has enough cash to purchase a company, but the firm has some non-negotiable criteria for buying control of companies outright:
- The company must have consistent earning power. (Key evidence: dividends)
- The company must produce good returns on equity.
- The company must have "able and honest management."
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