Berkshire Hathaway (BRK.A) (BRK.B) shares are in focus ahead of the conglomerate’s quarterly 13-F filing on Aug. 14, expected to reveal its long-speculated mystery stock investment.
Legendary investor Warren Buffett has confidentially accumulated nearly $5 billion of an unnamed stock this year, which many believe is an “industrial.”
Ahead of the regulatory filing, Berkshire Class B shares are trading nearly 12% below their year-to-date high set in the first week of May.
Warren Buffett’s conglomerate Berkshire Hathaway offered ample clues in its first and second quarter 10-Q reports that his so-called mystery investment likely belongs to the industrial sector.
For example, the firm’s cost basis of the “commercial, industrial, and other” category increased by $2 billion in Q1 and another $2.8 billion in Q2 – yet no major industrial purchases were disclosed in the May 13-F filing.
This discrepancy points to confidential accumulation, a tactic Buffett often uses to avoid inflating prices while building a position. Analysts speculate the likes of UPS (UPS) or Caterpillar (CAT) as contenders.
Berkshire’s report on Thursday will be significant for investors also because it could reveal other major moves the conglomerate has made in recent months.
For example, the SEC filing may confirm further reduction in its Bank of America (BAC) stake. Buffett trimmed his holding in BAC shares by nearly 40% between July 2024 and Q1 2025 – and second-quarter filings hint at another $4 billion in sales.
Additionally, investors will be watching for updates on the firm’s other core holdings like Apple (AAPL), American Express (AXP), and Chevron (CVX) as well on Aug. 14.
Simply put, given Buffett’s recent portfolio rebalancing, the 13-F could offer a broader view of Berkshire’s evolving investment strategy amid shifting market conditions.
While Berkshire Hathaway stock has been trending down in recent months, it hasn’t really fallen out of favor with Wall Street analysts.
According to Barchart, the consensus rating on BRK.B shares remains at “Moderate Buy” with the mean target of roughly $540 indicating potential upside of some 15% from current levels.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com