- TSMC holding size cut unusually quickly
- Exposure to financial stocks reduced
- Activision Blizzard stake also trimmed
The latest regulatory filings show Berkshire Hathaway (BRK.A:NYSE) was relatively inactive in share dealings in the final quarter of 2022 although there were some interesting moves.
TAKING CHIPS OFF THE TABLE
Rarely does Berkshire trade in and out of multi-billion-dollar positions, but it slashed its $4.1 billion stake in Taiwan Semiconductor Manufacturing (TSM:NASDAQ) to less than a billion dollars only three months after purchasing.
The shares have gained just over a third since the middle of November but remain around 26% below their 2021 peak.
A global downturn in the chip industry prompted TSMC to cut its capital expenditure forecast and warn that first quarter revenues would fall by 5% on weaker consumer demand.
The chip maker is a key supplier to Apple (APPL:NASDAQ), and Berkshire added more shares in the iPhone maker during the quarter picking up a further 20.8 million shares worth around $3.2 billion taking its stake to 5.8% worth around $140 billion.
LOWERING FINANCIAL AND CONSUMER EXPOSURE
Berkshire sliced its holding in US Bancorp (USB:NYSE) to 6.7 million shares and reduced its stake in BNY Mellon by 60% to 25.1 million shares, raising in total around $5.5 billion.
At the same time, the company trimmed its position in Call of Duty video game maker Activsion Blizzard (ATVI:NASDAQ) by 7.4 million shares and now holds 52.7 million shares worth just over $4 billion.
Berkshire has cut its Activision Blizzard stake by around a third in the last year suggesting it believes the odds of the Microsoft (MSFT:NASDAQ) takeover deal completing have dwindled.
The stock closed at $76.78 last night, still 20% shy of the $95 all-share takeover offer, as regulators scrutinise the deal on grounds it could harm competition.
The UK’s CMA (Competition and Markets Authority) said its initial conclusion was the merger could result in ‘higher prices, fewer choices or less innovation for UK gamers.’
The US Federal Trade Commission has filed an antitrust lawsuit to block the merger based on concerns ‘Microsoft's history of withholding gaming content from rivals and potential harm to consumers and competition’, according to gaming analyst Doug Creutz at technology research house Cowen & Co.
Meanwhile, gaming console competitor Sony (SONY:NASDAQ) has opposed the deal on worries Microsoft could make popular games such as Call of Duty exclusive to its own Xbox consoles.
Berkshire is seeking to profit from the 20% gap closing towards the $95 proposed takeover price. However, Cowen’s Creutz reckons the chances of the deal getting across the line are just 30%.
Microsoft is due to defend the merits of the deal in front of EU antitrust officials on 21 February.
