He's willing to let cash accumulate rather than chase valuations higher.
Warren Buffett's Berkshire Hathaway closed the third quarter of 2023 with a portfolio 10 percent lighter, shrinking from $348 billion to $313 billion — a contraction born not of crisis but of deliberate restraint. The Oracle of Omaha, long celebrated for knowing when not to act, slowed his share repurchases dramatically and trimmed or exited a dozen positions, signaling that in a world of elevated valuations, patience may be the most sophisticated strategy of all. The enduring ballast of Apple, Coca-Cola, American Express, and Bank of America remains, but the quarter's quiet pruning suggests a manager who sees more risk than reward in the current landscape.
- A $35 billion single-quarter portfolio decline at one of the world's most watched investment firms sends a clear signal: even the most patient capital is pulling back.
- Berkshire exited General Motors after more than a decade, sold out of Celanese entirely, and eliminated several household-name positions — a wave of quiet but decisive departures.
- Share buybacks collapsed from $4.44 billion in Q1 to just $1.09 billion in Q3, suggesting Buffett no longer sees his own stock as the bargain it once was at current prices.
- New stakes in Atlanta Braves and Sirius XM arrived not by conviction but by corporate restructuring, while a 25 percent addition to Capital One stands as the quarter's lone assertive move.
- With Apple still commanding half the portfolio and cash quietly accumulating, Berkshire appears to be building dry powder — waiting for a market that offers better terms.
Warren Buffett's Berkshire Hathaway arrived at the final stretch of 2023 carrying a notably lighter load. Its publicly disclosed stock portfolio fell 10 percent in the third quarter — from roughly $348 billion to $313 billion — a contraction shaped by both market forces and deliberate capital discipline.
The portfolio's architecture remains unchanged at its core. Five positions account for about 80 percent of holdings: Apple at roughly half the total, followed by Bank of America, American Express, Coca-Cola, and Chevron. These are not recent wagers. Apple was accumulated between 2016 and 2018 near $35 per share and now trades around $187. American Express and Coca-Cola are positions Buffett has called permanent, built at cost bases of $8.49 and $3.25 respectively. They are the ballast — and they stayed.
What shifted was everything around them. Berkshire exited Activision Blizzard when Microsoft's acquisition closed at $95 per share. It finished selling General Motors — a position held since 2012 — at prices between $32 and $40, a stock now trading at $28.20. Celanese was fully exited after a steep prior-quarter reduction. Johnson & Johnson, Mondelez, Procter & Gamble, and UPS were also eliminated. Chevron was trimmed by another third. Citigroup, purchased in early 2022 between $53 and $68, was cut 15 percent while trading well below that range.
Share repurchases told a similar story of restraint. Berkshire bought back roughly 3 million Class B equivalent shares for $1.09 billion — a sharp retreat from the $4.44 billion spent in the first quarter. The purchases came at 148 percent of book value, within the flexible criteria adopted in 2018, but the pace itself signals that Buffett sees his own stock as less of a bargain than he once did.
A modest Capital One addition and a handful of new tracking stocks from Liberty Media's restructuring rounded out the quarter's activity — but neither represented a bold new thesis. The broader portrait is one of a manager content to let cash accumulate rather than chase a market he finds uninspiring. Whether that caution reflects a forecast of correction or simply the discipline of a long-practiced patience will become clearer as 2024 approaches.
Warren Buffett's Berkshire Hathaway entered the final quarter of 2023 with a notably smaller portfolio. The company's publicly disclosed stock holdings fell 10 percent in the third quarter, shrinking from roughly $348 billion to $313 billion—a pullback that reflected both market conditions and deliberate choices about where to place capital.
The portfolio remains heavily concentrated. Five positions account for about 80 percent of the total: Apple dominates at roughly half the entire portfolio, followed by Bank of America, American Express, Coca-Cola, and Chevron. These are not new bets. Apple has been the cornerstone holding since Berkshire began accumulating shares between 2016 and 2018 at an average cost near $35 per share; it now trades around $187. Bank of America came through the exercise of warrants struck at $7.14, a position Berkshire has held steady for years. American Express and Coca-Cola are permanent holdings by Buffett's own declaration, built at cost bases of roughly $8.49 and $3.25 per share respectively. These four positions represent the ballast of the operation.
What changed in the quarter was the pace of buybacks and the willingness to trim positions. Berkshire repurchased about 3 million Class B equivalent shares for $1.09 billion, paying an average of $363 per share. That represents a sharp slowdown from the first quarter, when the company spent $4.44 billion on repurchases. The third-quarter purchases occurred at 148 percent of book value—above the old 120 percent threshold but within the more flexible criteria Buffett and his partner Charlie Munger adopted in 2018, which allows for repurchases whenever they believe the stock trades below intrinsic value.
The portfolio activity reveals a manager pruning positions and taking profits selectively. Berkshire exited entirely from Activision Blizzard, a small stake that had been held since late 2021 and was eliminated when Microsoft completed its $95-per-share acquisition. General Motors, a position first purchased in 2012, was substantially reduced—Berkshire sold roughly 45 percent of its holdings in the previous quarter and finished the job in Q3, exiting at prices between $32 and $40 while the stock now trades at $28.20. Celanese, a chemical company stake built over the first quarter of 2023, was completely sold after a 40 percent reduction the prior quarter. Several other small positions—Johnson & Johnson, Mondelez, Procter & Gamble, United Parcel Service—were also eliminated.
Meanwhile, Berkshire trimmed but did not exit larger holdings. Chevron, the fifth-largest position at nearly 6 percent of the portfolio, saw another one-third reduction. Citigroup, purchased in early 2022 between $53 and $68, was cut by 15 percent while trading well below that range at $28.28. Amazon and Aon each saw 5 percent trims. Markel was cut by two-thirds. These are not panic sales but rather the methodical work of a manager taking chips off the table after gains or reassessing valuations.
New positions emerged, mostly as artifacts of corporate restructuring. Liberty Media's ongoing recapitalization created new tracking stocks in Berkshire's portfolio, and a redistribution by Liberty resulted in small stakes in the Atlanta Braves and Sirius XM Holdings. Berkshire also added to Capital One Financial, increasing that position by 25 percent in the quarter at prices between $86 and $114.
The broader picture is one of caution. A portfolio that shrinks 10 percent in a single quarter, even as markets remained relatively stable, suggests Buffett sees fewer compelling opportunities at current prices. The slowdown in buybacks—from $4.44 billion in Q1 to $1.09 billion in Q3—reinforces that reading. Berkshire still holds $313 billion in stocks, still owns roughly half its portfolio in Apple, still maintains permanent positions in American Express and Coca-Cola. But the company is clearly being more selective about deploying capital, willing to let cash accumulate rather than chase valuations higher. What happens in the fourth quarter, and whether this cautious posture continues into 2024, will tell investors whether Buffett sees a market correction ahead or simply believes patience is the better part of wisdom.
Citas Notables
Berkshire's cost-basis on American Express and Coca-Cola are at around $8.49 and $3.25 respectively, with Buffett stating these positions will be held permanently.— Berkshire Hathaway 13F filing and Buffett's public statements
La Conversación del Hearth Otra perspectiva de la historia
Why would Buffett slow buybacks so dramatically—from $4.4 billion in the first quarter down to just over $1 billion by the third?
Because at 148 percent of book value, even with the flexible criteria he adopted in 2018, he's not seeing the margin of safety he wants. He's not saying the stock is overvalued, just that it's not cheap enough to justify aggressive repurchases.
But the portfolio itself fell 10 percent. Doesn't that suggest the market is already correcting?
Not necessarily. That 10 percent decline is partly market movement, but it's also Buffett actively selling. He exited General Motors entirely, trimmed Chevron by a third, cut Citigroup and others. He's taking profits and raising cash.
So he's worried about valuations across the board?
Not across the board. Apple is still half the portfolio and he hasn't touched it. American Express and Coca-Cola are permanent holdings. But in the mid-tier positions—the ones that have run up or where he's uncertain about future returns—he's becoming a seller.
What does that tell us about where he thinks the market is headed?
That he's uncertain enough to be cautious, but not certain enough to be aggressive. He's not raising a red flag. He's just saying: I'll wait for better prices.
And if prices don't come down?
Then he'll sit on the cash. That's happened before. Berkshire has held enormous cash positions when Buffett couldn't find investments that met his standards. Patience is the strategy.