Recently, Warren Buffett’s Berkshire Hathaway filed its 13-F form for the third quarter which, under SEC regulation, must include the stocks it had bought and sold in the quarter.
This quarter’s 13-F had some surprises.
Berkshire reduced its position in the financials again, specifically the large banks, while taking 4 new positions in big cap pharmaceutical companies.
After selling out of its airline stocks earlier in the year, and with these recent moves, Buffett has remade the Berkshire portfolio as we head into 2021.
Should you do the same?
Three Top Lessons Learned from Buffett’s 2020 Portfolio Moves
1. If an industry or sector is heading into hard times, there’s nothing wrong with just getting out completely and redeploying into other industries. Berkshire did this at the start of the pandemic in the spring when he sold all of his airline stocks including Southwest (LUV) .
The airline business is terrible right now and not expected to recover to pre-COVID levels for several years.
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