NEW YORK: Warren Buffett's Berkshire Hathaway Inc disclosed a new $366 million stake in cable TV operator Charter Communications Inc and pared its holdings in two other pay-TV companies, part of a flurry of changes in its stock investments during the second quarter.
Shares of Charter shares rose about 2 percent after-hours after Berkshire reported a new 2.3 million share stake, according to a U.S. Securities and Exchange Commission filing that detailed its domestic equity investments as of June 30.
Charter is "the play of choice on cable consolidation," said Wunderlich Securities analyst Matthew Harrigan.
"You've got a good story on an as-is basis and if they do more deals they can do a lot more value," he said.
DirecTV
Charter declined to comment. A message left with DirecTV was not immediately answered.
Shares of companies often rise after Berkshire reveals new investments because some investors consider it a vote of confidence by Buffett and try to copy him.
Berkshire did not disclose whether the Charter investment was made by Buffett or one of his portfolio managers, Todd Combs and Ted Weschler.
Buffett has said he generally makes Berkshire's larger investments such as Wells Fargo & Co
Within the pay TV sector, Berkshire said its stake in DirecTV fell by about 11 million shares since the end of March to 23.5 million. It is also no longer reporting any stake in premium TV cable network Starz
The sales of stocks contributed to a significant increase during the quarter in Berkshire's cash pile, which ended June at $55.5 billion.
That gives Buffett power to make at least one big acquisition and still retain his desired $20 billion cushion.
In Thursday's filing, Berkshire reported a new stake in Now Inc
Among the companies in which Berkshire reported higher share stakes were General Motors Corp
It also reported lower holdings in many companies, including oil company ConocoPhillips
U.S. regulators require large investors to disclose their stock holdings every quarter, and the disclosures can offer a window to their strategies for buying and selling stocks.
Berkshire ended June with more than $119 billion of equities, about 90 percent of which are on U.S. exchanges. It also owns more than 80 businesses ranging from ice cream to insurance to railroads.- Reuters
Already a subscriber? Log in.
Limited time offer:
Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!