Berkshire Hathaway, the investment firm run by Warren Buffett, recently released its quarterly financial reports and it looks like the company has undergone quite a few changes.
In the second quarter, Berkshire trimmed its stakes in American Airlines Group, Delta Air Lines, and United Continental Holdings. On the other hand, the company boosted its stakes in the Bank of New York Mellon and General Motors. Delta was little changed in late trading while American and United Airlines also weren’t moving much.
Buffett struck a deal during the financial crisis to invest $3 billion in GE and later converted warrants to common shares in the company. Shares of GE edged lower after hours in the stock market on Monday. GE is trading at its lowest levels in nearly two years.
Buffett also took a new stake in Synchrony Financial, a GE spinoff. Synchrony rose 3.8% in late trades on Monday. Berkshire said it owned 17.5 million shares of Synchrony, a private label credit card issuer split off from GE in 2014, worth about $521 million as of June 30.
Synchrony shares rose 4.6 percent in after-hours trading, likely reflecting what investors consider “Buffett’s imprimatur.”
Berkshire may have viewed that as “an opportunity to load up,” Colin Plunkett, a Morningstar analyst who covers Synchrony, said in an email. He said Synchrony remains undervalued, with a low degree of leverage, and “really has a big opportunity to return cash to shareholders.”
Synchrony did not immediately respond to a request for comment.
It also nearly eliminated a decade-old investment in Wabco Holdings Corp, which supplies commercial vehicle parts.
Berkshire boosted its stake in Liberty Media Corp and reduced its holdings of Sirius XM Holdings, both investments linked to billionaire John Malone.
Buffett and Malone have explored a large investment in Sprint, people familiar with the matter said last month.