Is Buffett running out of opportunities?

Berkshire Hathaway sold more investments than it bought last quarter.

By GuruFocus.com Aug 7, 2012 11:59AM
Berkshire Hathaway (BRK.A, BRK.B), the investment company of Warren Buffett, just filed its second-quarter results. 

Going through the report, we found that Berkshire bought $1.8 billion in stocks, while selling $3 billion in the second quarter. Berkshire was a net seller of $1.2 billion for the quarter.

You can read Berkshire's second-quarter report here.

For the first six months of the year, Berkshire Hathaway bought $5.2 billion of stocks. In the first quarter, Berkshire bought 7 million shares of Wal-Mart (WMT), 10 million shares of Wells Fargo (WFC), 6 million shares of DaVita (DVA) and 10 million shares of General Motors (GM). GM is a new position for Berkshire. The details of the first-quarter purchases are here.

Berkshire's second-quarter purchases will be reported in less than two weeks. We are hosting a quarterly contest for Buffett fans to guess which stocks he bought in the second quarter. You can input your guesses by following this link.

For the first six months, Berkshire sold $3.8 billion in stocks. Most of the sales were done in the second quarter.

It seems that Berkshire investors Tom Comb, Ted Weschler, and Buffett himself are finding fewer opportunities in the stock market.

Here are the details of Berkshire's recent purchases.
10Comments
Aug 7, 2012 3:24PM
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Probably because Berkshire finds it a good selling opportunity while everything is still pretty high and keeps creeping higher.  Because long term outlook isn't good.
Aug 7, 2012 4:49PM
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Warren WILL find many more opportunities.

Aug 8, 2012 8:40AM
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Hi, I would like to see the difference between the guy who wrote this and Mr. Buffetts bank accounts !
Aug 7, 2012 4:53PM
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maybe he is building back up his cash holdings.  didn't birkshire used to have a 10 billion cash reserve?
Aug 8, 2012 2:49PM
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There are very few good investment opportunities. Cash, bonds, equities are all risky. We live in very dangerous times.
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Warren Buffet is having a hard time looking for opportunities?

In March of 2009, even I made money buying stocks as most were down to 50% or less of value. Now it is harder to pick the winners when everything has come back. KMP, WES, ARCC, O, etc. were some I bought. Most are doubled or even tripled in price.

I am looking to start buying the stocks needed to keep their value through this next 2 year period and beyond when the whole world could go into a tail spin.

I am looking at natural gas (yet) as the "Easy" oil has hit its peak and, Food growing businesses, Water drillers and suppliers and other basics of life, even Gold and Silver (of which I recently said I'd never buy Gold). I will even keep my solar energy WEST. I would definitely sell any Vehicle stocks, Social networking stocks and Semiconductor stocks as who will be able to afford to pay their internet fees or have an IPhone when inflation will reach 25% and the dollar will be worth nothing due to this entire money making by the Fed?

I even think the internet will be a Gov't entity, gone for individual use.

With American debt in the Trillions, the Notional value of the derivative markets in the $600 Trillion (more than the worth of every nation on Earth put together), the high population growth, food and water shortages, high price of energy, I am thinking about having something in physical value like an AK 47 and about 10,000 rounds of ammo per member of the household.

The President we have now will try to tax everyone into submission and dependency on the Federal Gov't. Most Americans have their hands behind their backs and their heads in the sand waiting for the coup-de-grâce. Warren Buffet is having a hard time finding opportunity? He hasn't seen anything yet.

 

Aug 8, 2012 7:56PM
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some I bought. Most are doubled or even tripled in price.

I am looking to start buying the stocks needed to keep their value through this next 2 year period and beyond when the whole world could go into a tail spin.

I am looking at natural gas (yet) as the "Easy" oil has hit its peak and, Food growing businesses,
Aug 8, 2012 7:11AM
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Buffet can't buy gold and silver, because he shot off his mouth and said, “civilized people don’t buy gold” and "If you buy an ounce of gold today and you hold it at hundred years, you can go to it every day and you could coo to it and fondle it and a hundred years from now, you’ll have one ounce of gold and it won’t have done anything for you in between."

Buffet shot off his mouth about investing in gold and silver because he felt stupid for not investing in them for the last decade. Berkshire and stocks didn't perform anywhere near as good as gold and silver.
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