Warren Buffett Buys Capital One, Dumps BNY Mellon


Warren Buffett’s Berkshire Hathaway (BRK.A) (BRK.B) shook up its bank holdings last quarter, adding Capital One and exiting positions in two other major lenders amid banking sector turmoil.

Key Takeaways

  • Berkshire Hathaway 13F filing discloses new position in Capital One, Diageo.
  • Warren Buffett’s firm also cut its stakes in Chevron and General Motors.
  • Other firms bought up chipmaker TSMC after Buffett walked away.

The Omaha, Nebraska-firm noted in a 13-F filing that it had bought up shares worth $954 million in U.S. bank Capital One (COF). The Virginia-based lender rose more than 3% on the news.

Buffett’s firm exited its $1.14 billion position in BNY Mellon (BK) and a $290 million position in US Bancorp (USB).

Apple Inc. (AAPL) continues to be Berkshire’s largest stock holding. Buffett said at the recent annual meeting that it was “better than any business” Berkshire owns outright. He added that the loyalty of the iPhone’s customer base makes it an “extraordinary product.”

The billionaire, 92, may have been less impressed with fellow titans Chevron (CVX) and General Motors Co. (GM), Berkshire’s holdings of which were cut by 20% and 19%, respectively. Another new purchase for Berkshire was U.K. drinks maker Diageo (DEO).

The latest filing also confirmed that Berkshire had exited its stake in the ADR of chipmaker Taiwan Semiconductor (TSM). Buffett said at the annual meeting the company was “one of the best-managed and (most) important companies in the world,” but he was more comfortable about the investments made by his company in Japan due to recent tensions with China. But large investment firms including Macquarie Group Ltd, Fidelity, and Tiger Global Management rushed into the company as Berkshire sold, according to further SEC filings.